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

Attached Image

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.

Attached Image

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."

Attached Image

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: 896 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
The latest MyCarForum Hangout with Perodua witnessed the launch of the brand new Perodua Bezza, t...
POPULAR BLOG POSTS
Photo
Despite a nearly $7 billion cost in recalling its explosive Galaxy Note 7 phones, Samsung ha...
Photo
Before we start asking what the Government can do to encourage the use of electric vehicles (EVs)...
Photo
Driving an old car with almost no modern features in it? Or just love adding new accessories for...
Photo
Toyota might soon have an official performance division for its models like how Mercedes-AMG and...
Photo
Ditching the front passenger seat for an infotainment system is a unique selling point for Volvo’...
   Lifestyle Articles