Car loan interest rate in Singapore usually ranges from 2% to 3+%. The “low interest rate” was a selling point used by the car salesperson on me when I was buying my Mercedes last year.
“Interest rate only 2.45%” he boasted.
Is he telling the truth? Not really.
Usually, the interest rate is being calculated flatly on the loan amount. For example, if you take 5 years $10,000 loan at an interest rate of 3%, your monthly repayment is calculated this way:
Step 1: Total interest repayment = (3% of $10,000) x (5 years) = $1,500
