The thrill of hopping into a car (your car), turning on the engine, and driving to work is irresistible. What about this? It is time for a holiday, and you, plus friends, significant other or family, drive off to the best getaway destination of your life. However, buying a car in Singapore is never easy because of the price. For example, an average sedan costs about S$99,262, while a crossover will require you to S$108,300, which can take years to save. The alternative is car financing in Singapore.
Car financing is a form of loan advanced to lenders to purchase the vehicles of their choice. However, not all people qualify for car loans, and if you are one of them, a personal loan will be a good alternative. We will also tell you why taking a personal loan might even be a smarter alternative than car financing.
Comparing a Car Loan and Personal Loan
Let’s start with this, what is the difference between taking a car loan and a personal loan in Singapore?
- A Car Loan
A car loan is a form of credit advanced to a borrower to buy a car. The loan can be either a direct car loan from a bank or through a car dealer. In the case of a car loan, the bank pays the money directly to the seller. If you opt to use a dealer, the money is sent to the dealer, who in turn pays the car owner.
In either case, whether through direct financing or dealership, the ownership of the car (logbook) will be withheld until you clear the loan. So, defaulting on the loan means that the car can be taken away any time to recover the lender’s money. Simply put, the car remains the collateral until the loan is fully settled.
- A Personal Loan
Unlike a car loan, a personal loan is money advanced to you by a lender, and you are free to do what you want with it. Once you apply for the loan and it is approved, the cash will not be sent to the car seller. This implies that you have to look for the car on your own and complete the purchase.
The most notable thing about personal loans in Singapore is that in the event that you are unable to pay the loan, no one will come for your car because it is 100% unsecured. Again, you drive home with the car of your choice together with the logbook. This means that you continue paying the loan when enjoying full ownership.
As the owner of a car, it also implies that you can sell it any time without asking permission or involving a lot of parties. For example, if you just realized that the SUV you bought does not return good fuel economy and want a smaller car, it might be a good idea to sell and go for that. That would be pretty straightforward if you bought the car using a personal loan.
Apply for a Personal Loan through Lendela
Buying a car with a personal loan is an excellent idea if you are unable to secure a car loan. However, you need to do first things first: apply for a personal loan in Singapore. This can be pretty challenging for many people because of the long list of lenders, from banks to online lenders. Instead of trying to navigate through the complex process of loan application, why not use a loan comparison site. One of the best options in Singapore is Lendela.
To use Lendela is very simple, and it raises your chances of getting the personal loan approved with a huge margin. They do not just send the application to any lender, but use a matching algorithm to identify those willing to work with you. This is why you are likely to get so many pre-approved offers for your personal loan. Here is the procedure for loan application with Lendela.
- Visit Lendela to make a short application.
- The application is sent to various lenders.
- Lenders give pre-approved offers.
- Select the preferred offers and Lendela books you an appointment.
- Sign the personal loan and money is deposited in your personal account.
- Buy the car of your choice.
As you can see, there are a number of ways that you can use to buy a car in Singapore, including direct bank loan and dealership, but if these are not accessible, a personal loan is always a step away. Make sure to apply through Lendela to increase your chances of getting the loan approved.