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: 1,059 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
Volkswagen has revealed that its ‘R’ brand performance models will soon become more wild and less...
POPULAR BLOG POSTS
Photo
An update has been given to Gran Turismo Sport. Other than a bunch of new cars, players will also...
Photo
China has been using many premium car maker's models as an 'inspiration' to create th...
Photo
While the rush for the downsizing of engines has slowed down, it is still pretty much ongoing. So...
Photo
The Hyundai i30 N has been well-received by hot hatch fans but for those who prefer to not shift...
Photo
Amazingly, images of the next-generation Mazda3's instrumental cluster have been leaked onlin...
   Lifestyle Articles