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MAS Imposes Financing Restrictions on Motor Vehicle Loans


Fabiaman
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Finally!!! This will cut off those cash-strapped people from buying a car. Else there will be no end to the loans. The banks must be feeling very tulan now. [laugh]

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I am thinking this CM will almost stop easily 30-50% car loans from successful approval (just a ballpark figure)

 

Still not enough?

 

Good move, but not enough...

 

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Finally!!! This will cut off those cash-strapped people from buying a car. Else there will be no end to the loans. The banks must be feeling very tulan now. [laugh]

 

 

Ah gong own the banks, you know?

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I am thinking this CM will almost stop easily 30-50% car loans from successful approval (just a ballpark figure)

 

Still not enough?

 

Should impose on cat c too

Those Mongkuts who cannot take enough loan type for cat a b type will chiong those euro van sabo cat c :angry:

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Its a smart move by the govt.

 

1. Car demand will drop overnight due to the lower LTV imposed. COE likely to drop but NEW car prices will not crash coz of the higher ARF tax imposed.

 

2. Resale car mkt will bear the brunt of this new LTV regulation. Very few people have $100k cash to spare on a $200k car.

 

Conclusion.... if you in the mkt to buy a car and has $$$ sitting in the bank, go for resale as it doesnt attract the new ARF tax... and the prices will likely drop on the expected lower demand.

 

As for Resale car sellers... good luck !

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This will kill off a lot of marginal players. Very draconian

 

If the economy really hit rock bottom,that is when the real killing begins.

 

The way i see it this will help prevent it. In 97-98 financial crisis banks learn it the hard way. Default payment everywhere banks get stuck with the cars they repossess. Cannot sell them off as no demand. Plus cars are huge depreciating assets...the loss was huge.

 

Better to stop them now dan later when it's too late.

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