Jump to content


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: 1,238 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 new Mercedes-AMG A 35 will sit below the A 45 in the A-Class line-up, rivalling the Audi S3 a...
POPULAR BLOG POSTS
Photo
Nissan has yet to decide what is it using to power its new GT-R. But it aims to be the fastest in...
Photo
Ian Kettle joins other tesla car designers like Julien Bilodeau from Porsche and WooTak Kim from...
Photo
Swedish manufacturer Koenigsegg, has revealed its final two Ageras. They are individually named T...
Photo
Tesla head Elon Musk, has confirmed that the Model S, 3, and X will get a new Party & Camper...
Photo
With the help of Gazoo Racing, Toyota has introduced a new variant of its 86. Dubbed 86 GR Sport...
   Lifestyle Articles