Financing your first car under MAS rules
The Monetary Authority of Singapore limits car loans to protect buyers from over-extending themselves. Understanding the rules means you can plan your purchase accurately.
LTV limits
If the OMV is S$20,000 or below, you can borrow up to 70% of the purchase price. If the OMV exceeds S$20,000, the loan is capped at 60%. Most cars above S$60,000 retail have OMVs above S$20,000 — meaning you need at least 40% as a downpayment.
Loan tenure
Car loans are capped at 7 years. A S$80,000 loan at 2.68% flat costs approximately S$7,700 in interest over 7 years — nearly S$2,000 more than over 5 years.
What a realistic monthly looks like
A S$120,000 car at 60% LTV: S$72,000 loan over 7 years ≈ S$1,043/month. Add road tax + insurance + fuel = approximately S$1,400–1,550 all-in per month.
Use our loan calculator to model any scenario accurately.
