Second hand car loans are usually slightly above those of brand
new cars. At the moment, the interest for used cars is around
2.65-3.00% per annum.
Be careful with the per annum interest rates though....if you
calculated the total interest, you'd be surprised how much it
actually comes to. For example, if you took a loan for $50k over 7
years, the total interest paid is actually over S$10k! Thats a lot
of good money down the drain.
Depending on your situation, its not always advisable (in fact,
usually unadvisable) to take a loan for too long a term. If
anything happens to the car (and it sometimes WILL), you can't get
rid of it. Lots of people have been caught by this before.
Take for example that you buy a car for $50k, and take a 6 year
loan for $50k:
- At 3% flat interest, total amount payable in 6 years is
$59k!
- Each month for 6 years, you'll have to pay $820 in
instalment.
- After 2 years, you would have paid around $20k.
- This leaves S$(59-20) = S$39k left, owed to the bank.
Now, assuming that you need to sell it after 2 years of ownership,
for whatever reason, you will have to immediately pay the bank
S$39k. But after two years, you may only be able to sell/scrap the
car for S$25-30k. This means that you have to top up with your own
money to S$39 to pay the bank.
This is all personal preference, but for me, I try to dump in as
much downpayment as I can afford and settle my fully loan in 3
years, if possible. This will allow me to be more financially
free....I don't wanna become a "yes, sir" slave at work, fearing to
lose my job, fear my boss, colleagues, customers, etc. In other
words, a loan is actually a weakness created for oneself. Living in
Singapore, we can't get away from loans.....but at least we can
reduce them and manage them in a less risky manner.
Note also that there are many hidden costs in buying used cars. LTA
fees for change of ownership can come up to over $1000 (depending
on the value of the car). Repairs/maintenance just after taking
over a used car can also easily come up to a few hundred bucks, if
not much more (depending on the condition and how fussy you are).
Then there is road tax, parking, ERP, petrol, etc etc).
Also, if you get a sports car like Skyline, insurance will be a
killer (could be as much as $1500-2000 per year). Remember also
that sports cars (and branded cars) will also usually need super
high maintenance (fuel, repairs/maintenance, tyres, brakes,
accessories, other mods, etc).
For my humble current vehicle, the cost of ownership PER MONTH
currently (insurance, fuel, repairs/maintenance, road tax,
depreciation, ERP, parking, traffic fines 
, etc) is almost $2000!
Basically, if you're not driving now and used to taking public
transport..... er....then better not to buy a car if you don't need
one. Cos once you start driving, you're stuck (like me)
Its all still finally up to you though. Being a car lover myself, I
know how tempting it can be. Here's wishing you luck...hoping
you'll make the best choice for your own lifestyle.