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Transport financing

In Singapore, car financing is rarely about “lowest instalment”. It’s about fragility: can you survive rate shocks, cash shocks, and an exit decision without becoming trapped?

Recommended path (10 minutes)

  1. Pick the structure: loan vs cash → balloon vs normal → lease vs buy.
  2. Stress-test exposure: compare true monthly cost (not instalment) and your buffer.
  3. Check the failure mode: can you exit if COE/prices move against you?

Decision comparisons

Car loan vs pay cash

Interest cost vs liquidity risk. Leverage helps until it makes you fragile.

Balloon loan vs normal loan

Lower instalment vs exit risk: when “cheap” becomes a trap.

Car leasing vs buying

Pay for flexibility, or own the exposure. Decide by holding period + risk transfer.

Common traps

Run the numbers

Car affordability stress test

Stress-test true monthly cost (not instalment) against your income buffer.

Car vs ride-hailing break-even

If you’re not sure you should own a car at all, start here.

All calculators

Browse transport + property calculators.

Learn the mechanics

Financing mechanics

Related decisions

Prefer the cross-cluster view? See the full Financing hub.