Car Refinancing The Best Choice For When You Need Some Cash?
Whether it is for something such as a holiday or for unexpected opportunities for investment or, touch wood, an urgent medical need – it always pays (literally!) to know where you can go to to get some cash to solve a need, at the lowest interest rates. The difference in interest rates can make a huge difference in what you eventually pay back!
Let’s compare different kinds of loans for cash to a car refinancing loan.
Options for Drawing Cash
So, fast cash from credit cards? For the financially prudent, the answer would be an immediate no! When you draw cash from a credit card, the interest charged starts at a typical 24% rate – that is bordering on untenable if your amount loaned is large – you may soon find that the repayment is not keeping up with the interest charges.
How about personal loans? Not really, they start at 3.88% (as of August 2018) and their late fees are really prohibitive – starting at $100 the moment you are late for DBS and of course, interest charges kick in on the overdue amount. Rates also seem to have risen in 2019 according to the picture of the offer from OCBC.
More info here. “Starts from” usually indicates this is the rate offered to those with high income and low or no debt at the moment – it is just business sense to offer those with the means to repay at a low interest rate, as they are the lowest risk. Some finance institutions will charge higher risk customers higher interest charges.
Add to that, most banks charge an annual fee, like Standard Chartered charges $199 per year you still have outstanding loan amount with them. So if you choose a 3 year repayment term, there are three annual fees to pay for. If they don’t show an annual fee on the website, please ask to make sure!
I won’t even venture to personal loans from licensed money lenders. They are more lax with their approval criteria, however, those are prohibitively expensive! We know, because we have used a car loan to help a customer settle his personal loan from money lenders, when he finally figured out there was such a facility to cut his interest expenses.
How about SME business loans? 6% and more per annum as of the writing of this article. Plus annual fees similar to the personal loans.
So what is the best way to get some cash for unexpected needs at a low interest rate?
You could try refinancing your car with us! Loan rates for car refinancing start at 2.78%.
That is 28% less interest paid than the cheapest rates offered for all the loan types abovementioned.
When compared to SME loans, you would be paying 2.15 times more interest at 6% when compared to a car loan at 2.78%.
I know loan rates will move over time, but they will generally move in tandem and re-align such that car refinancing is always significantly lower than any of the other types of loans offered above.
Can I apply for this car loan?
Come see us, we can assist you if you:
- Own a car which has no loan (whether the car is less than 10 years old or past 10 years – both are OK)
- Car market value is now significantly higher than your current outstanding loan
We also require the following in order to process and request for the loan approval for you:
- Proof of Income
- Vehicle log information
We are happy to assist and if you wish to know more, kindly contact us using the form on the right side of this page or click the Whatsapp to text us anytime or call 92782880 (during office hours). Or if you wish to read our Q&A on car refinancing before calling us, click here.