Jump to content


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: 1,014 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
Formula 1 has announced grid girls will become a thing of the past after months of debate. The ru...
POPULAR BLOG POSTS
Photo
This 421km/h Nissan 300ZX is up for sale by BH Auction in Japan. Set to go on sale in January, th...
Photo
Only 175 coupe and Volante Aston Martin Vanquish S Ultimate models will be produced, as Aston Mar...
Photo
Lamborghini launches its third model the Lamborghini Urus, the first Super Sport Utility Vehicle...
Photo
Within its first few hours of operation in Las Vegas yesterday, an autonomous shuttle bus that is...
Photo
The Toyota C-HR is a somewhat above average crossover with nifty styling, high-performance C-HR...
   Lifestyle Articles