Car Loan Refinancing FAQ
Refinance car loan Maybank
We hope to answer some of the common queries that one may have about refinancing of car loans and other auto vehicles here on this page. Common question like “How to refinance a car loan?”, “How to refinance car loan for Grab?”, “Where to get no proof of income car loan?”, “Why refinance existing car loan?” etc. These may not be exhaustive but we hope to fill you in on most parts. For specific other questions not found here, please do contact us for further details.
Refinance car loan Hong Leong
Why should I refinance my car loan?
This depends on your needs. Our customers search for and come to us to look for a solution when they find the burden of monthly repayments outweigh their current financials – sometimes it may be a longer than anticipated time between jobs. In such situations, refinancing your car may be one of the available options to make the money last till that next job is found.
Some other customers need to refinance for vehicel to be used as a Grab car, as their current car finance institution does not allow the car to be used for Grab car driving. Grab car refinancing is largely the same, but the finance institution applied for needs to be able to accept a car under Z10 status.
Refinancing allows for lower monthly repayments. Reducing of monthly payments is achieved by stretching out your outstanding amount over a longer term. Depending on the situation, you may also get money upon approval.
Can I apply if I have bad credit rating / credit report is not good?
We understand that people run into personal financial squeezes sometimes and some of you may have no proof of income. We offer to look at your situation and consider each case based on your unique circumstances. However, we do appreciate that you are candid about the challenges you may be facing, so that we may advise you better and go to the most appropriate solution for your situation.
All this will be done at a face to face discussion and any details you may disclose will be kept in fully confidential to protect your privacy.
What are the car loan rates for refinance that I will be paying?
Be assured we will find you the best car loan refinance rates for your situation. However, we have to be upfront here that the interest rates you will be paying are higher than those given for a brand new car loan. But surely, this will be much lower than borrowing on your credit cards. The interest rates are fluctuating as with all loan types, please do inquire when you come by to our office.
While it sounds good to just tell you a low interest rate when you ask us, we do aim to be accurate with our answers so you do not feel misled by a low interest offer which in the end you are not eligible for.
We need to know your request details and some background about your financial situation before we are able to advise on the interest rates. We provide loans from a variety of financial institutions and these have various interest rates. And until we do an assessment of which financial institution is best able to do the loan for your particular situation, we cannot accurately give you the interest rates nor the monthly repayment amount. So do be patient with us as we seek to find out more by asking you some questions about your situation and your car details.
Banks and financial institutions work on a risk assessment basis and that is the reason used car loan interest rates will always be higher than that of a brand new car. This actually applies for all sorts of products and financial instruments, not just car loans. For example, note that when investing in a unit trust that offers higher percentage of potential returns, it will present the buyer of the fund more risk.
That said, we are here to assist to help you out. Whether your car has existing loan, or if you want to get cash from your fully paid car while still driving it, we can assist you with it.
What is the difference between a car loan and refinancing?
When we speak of car loans in Singapore, it is often that we do not think of it as a hire purchase car loan. But in fact, almost all car loans in Singapore for cars are of the hire purchase type. Accurately speaking, one should think of it not so much as purchasing the car – the customer who takes the loan is a hirer and legally, the car is collateral and will be claimed by the financial institution upon default of the loan. In this way, there is not much difference between a new car loan and refinancing.
You may think of refinancing as the financing institution granting you a used car loan, except that this used car is in fact the same car that you have driven for some time and are seeking to ease the monthly repayments for.
Some people in common speak may refer to this as vehicle mortgage or car re-loan.
What if there are still outstanding balances on my loan?
If your refinancing application is approved after our checks, the balance amount owed to the lender in your existing loan will be paid off by us. Depending on the car you are refinancing (the age, model and state of its condition), you may be able to get some cash in hand.
You will definitely be able to get cash in hand if your car is already fully paid for. Again, just think of it as selling your car to us the dealers and you buy it back from us with a loan as a used car. You will receive money when you sell us the car.
What are the requirements when making the application for refinancing?
We would like to see your identity card, proof of income documents, know of the status of your place of residence. Please bring documents related to these to show us when you come by to our office.
We do also require that your car be fully insured at the point of application or upon approval of the application. But no worries, since we also work in motor insurance, we can handle this for you together as part of the process.
Is it possible that I fail to get refinancing for my car?
We do our best to help you but there are situations which will prevent from getting financing and you may need to stay with the current loan
- The loan amount needed is higher than the (market valuation for your car x MAS allowed loan %)
- The vehicle is left with too short a COE – typically banks will reject cars with less than one year of COE left as the minimal term for car loan is for one year.
- Vehicle age is too old, such as those above 15 years old, it does start to get more difficult to obtain approval.
But do ask us about your situation and we will see what we can do to assist.
Are there any fees involved in the application?
Application requires the required documents and a minimal commitment fee, refundable except for $50 for work done if we fail to secure you a loan.
Upon approval there is an administration fee of, typically, $600 and other related fees such as vehicle transfer fees (only if there is a transfer). The earlier commitment fee counts towards the payment of these costs.
As mentioned above, we also need car insurance cover, first installment and other costs from you, and these will be explained in a detailed cost calculation sheet when you sit down with us for a discussion.
Is there any security or deposit required?
The car forms your collateral in a refinance, similar as in any car loan. There is no security deposit amount. However, as with all car loans, the first installment is always collected upfront at the beginning of the loan by the bank or financial institution.
Other terms and conditions may apply, please feel free to ask when you come by for your application.
Are you able to give me some examples of who and how those who have refinanced have been helped?
We have done quite a number of cases over the years and click here for an example of those who have benefited from going for refinancing.
There are some details I would like to know that you have not mentioned here. How can I learn more?
Ask us more by clicking on the Call button during office hours or text us through the WhatsApp button. Or you can drop us your details through the form on the right (or bottom) of this page and let us get back to you. We will be happy to answer your queries.
I want to refinance my car, how can I do that?
Simply click on WhatsApp button to text us anytime or use the form on the right or bottom of page to key in your details and we will call you back! Alternatively, for immediate attention, call 92782880 within office hours. We are happy to help answer any other questions you may have and help you with all the necessary loan paperwork to get it done.