Jump to content

MyCarForum Logo
Search
Magnifying glass

SEARCH

0

Auto loans capped at 5 years and up to 60%

By PetrolHead on 25 Feb 2013

Motor loans will be capped to a five year loan period in a new ruling by the MAS. Moreover, the loan-to value amount will be dependent on the OMV of a vehicle and could range between 50 60 percent.

For a motor vehicle with an OMV up to $20,000, the maximum loan value will be at 60 percent of the purchase price which includes taxes and COE. Vehicles that cost more than $20,000 in OMV will have a 50 percent loan value of the purchase price. Regardless of the loan value, the loan period is capped at 5 years for all car loans.

In a statement on Monday, the MAS said: "The financing restrictions are necessary to encourage financial prudence among buyers of motor vehicles. In this prolonged environment of very low interest rates, there is greater risk of buyers over-extending themselves on motor vehicles."

The newly imposed restrictions will not affect loans for commercial vehicle or motorcycle purchases and takes effect from tomorrow the 26th February 2013.

local, , singapore car news and 5 more...

Viewed: 983 times

Related Blog Posts
PetrolHead
Written by PetrolHead
A passionate motoring enthusiast since little, Akram's articles gives alternative insights on the latest motoring news.



 
Car Makes

Please select a car make

Facebook Likes
   Featured Blog Post
Photo
Bloomberg has reported that luxury and performance brands have seen a massive increase in sales b...
POPULAR BLOG POSTS
Photo
Can't afford the car but still want to have a piece of Porsche related product? Try this late...
Photo
Honda has given its very popular crossover, the HR-V/Vezel, a new special edition. It gets news c...
Photo
Richard Hammond is back behind the wheel after a nasty crash that he's lucky to have survived...
Photo
A 2006 Mitsubishi Evo IX MR with just nine miles on the clock and zero owners has just been sold...
Photo
Mazda has released the first official exterior photo of its new three-row-seater SUV. Called the...
   Lifestyle Articles