United Overseas Bank (UOB) on July 30 launched Singapore’s largest car ecosystem and a faster UOB car loan application process with its fully-digital financing solution for car buyers. UOB’s digital car financing solution is available at seven dealerships island-wide and via leading mobile and online classifieds marketplace, Carousell. Combined, the eight partners offer 11 car brands and account for almost two-thirds of all cars sold in Singapore.
A major pain point in buying cars, according to research conducted by UOB, is the amount of paperwork and time it takes for a salesperson and customer to complete a car loan application. The UOB car loan process has been made completely-digital. The new car financing solution removes the need for manual form filling, the furnishing of paper documents and long processing times. It cuts the process from an average of three working days to 15 minutes.
Ms Jacquelyn Tan, Head of Personal Financial Services Singapore, UOB, said that the Bank worked with Carousell and car dealerships to transform the car buying journey. “UOB finances one in four new car sales so we understand first-hand from our partners in the automotive industry, and our customers, that they have a need for speed when it comes to car financing approvals. We have brought together Singapore’s largest car ecosystem – including online and brick-and-mortar car dealerships – to design a simpler, smarter and speedier route for car sales agents to help customers apply for loans.”
With UOB’s digital solution, a car dealer only needs to key in three data points for the customer – the applicant’s name, mobile phone number and NRIC number – into a secure and customised online portal. The buyer then logs in using their SingPass to confirm their personal, car and financing details. Upon customer consent, UOB processes the application within minutes. The speedy solution is fueled by the Bank’s credit processing engine, a secure link to MyInfo and Credit Bureau Singapore.
For applications made via Carousell, the buyer only needs to click on the ‘Apply for UOB Car Loan’ link to enter their details once they have chosen their car. Once UOB has approved the application, the car dealer calls the buyer to confirm the purchase. This is the first time Carousell customers can have their car loans approved in mere minutes.
As part of the digital service, UOB has also custom-built a loan dashboard for each partner and integrated into the solution each dealership’s own database of car makes and models. Once logged in to UOB’s digital service, each dealer can see the status of all their customers’ UOB car loan applications as well as a listing of the car makes and models. This information is also used to automate the loan application process.
UOB’s ecosystem partners are Cycle & Carriage Singapore, Inchcape Singapore, Motor Image Enterprises, Performance Premium Selection Limited, Premium Automobiles, Tan Chong Motor Sales and Trans Eurokars, and Carousell.
How the solution works:
The UOB car loan application process is fully automated. The solution is designed such that the loan application and approval process can be completed within minutes.
The car dealer opens the online application form, fills and enters the applicant’s name, mobile phone number and NRIC number. For car buyers who shop through Carousell, they open the online application form by clicking on the UOB icon after selecting their car of choice.
Although there are various types of car loans that consumers can choose from. The right one, of course, is determined by the consumer’s preferences, available finances and loan availability.
New Car Loans vs Used Car Loans
First, there are new car loans (applicable to new vehicles) and used car loans (applicable to used vehicles). Both of these types have their own advantages. For instance, the advantages of getting a new car and a new car loan are that you will get the opportunity to own a vehicle in its best state; you will also be able to choose a model you like as well ss decide on the add-ons; you will get a manufacturer warranty; and you won’t have to deal with any past maintenance issues.
Meanwhile, the advantages of getting a used car loan include a lower price, though you have to be cautious when choosing a used car to buy. Additionally, used cars have slower depreciation rate.
New cars face around 20% depreciation in value in their first year. Purchasing a used vehicle means that you won’t have to be the one to experience that depreciation hit. A used car loan will also lower your risk of being in a situation where the worth of the vehicle is less than the amount that you owe. Used car loans also typically have shorter terms, which means you will be able to pay your debts back faster.
Under the current MAS rules, the maximum loan tenure will be 7 years, subjected to the remaining Certificate of entitlement (COE). The loan quantum is 70% for a car that has an Open Market Value (OMV) of $20,000 and below and 60% for a car that has an Open Market Value (OMV) of more than $20,000.
A Car Loan Calculator could Help You
Comparing different car loans before you purchase a vehicle will help you save money. A car loan calculator can help you find the best deals and lowest rates out there. You will also be able to estimate monthly payments and get an idea of the car price that you can afford.
How to Secure a Motor Vehicle Loan Quickly
Are planning to purchase a car but unsure of loans like the UOB car loan? Don’t worry because iCompareLoan loan consultants can set you up on a path that can get you a loan in a quick and seamless manner.
Alternatively you can read more about the Best Car Loans in Singapore before deciding. Our brokers have close links with the best lenders in town and can help you compare Singapore home loans and settle for a package that best suits your home purchase needs.
Whether you are looking for a loan for new or used car, loan consultants can help you get everything right from calculating repayment, comparing interest rates all through to securing the loan. And the good thing is that all our services are free of charge. So it’s all worth it to secure a loan through us.
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