Ripple Effect of Car Loan Curbs

[Ernestchewjiyang0908021996]

When is the next coe

[Carnoob]

How come the backlog is like a black hole..

 

Feb 26 kicks in bank loan of only 60%, Mar 4 kicks in 60% for in house loan.

 

So this month 2nd bidding MAY see the effect of loan curbs. However, after Mar 4, AD are still accepting sales with 58k COE rebate, so if ppl decides to top up 10k for COE (don't include in car price already so can take 100% loan over 10yrs?) and goes for another guarantee COE (possible?) so AD still can bid at 60k to 68k range. It will take another few more rounds before the drop can be seen, but who knows - are they patient enough to wait or change rules again cos used car dealers grumbling?

 

[Icebrush79]

dont pple realize that d fact that they can get CNA to publish an article, it means theyre connected n powerful enuff 2 get state controlled media attention? Seems 2 me lots of vested interest in car biz here... wonder who r connected pple behind d scenes pushing buttons...

 

You dwell too much. The media publish articles based on public interest and news worthiness.

 

Of course there are lots of vested interest on car cooling measures like duh!! its the 2nd highest priced asset (beside housing) for most average joes which makes 80% of the total population.

 

[Duckduck]

Feb 26 kicks in bank loan of only 60%, Mar 4 kicks in 60% for in house loan.

 

So this month 2nd bidding MAY see the effect of loan curbs. However, after Mar 4, AD are still accepting sales with 58k COE rebate, so if ppl decides to top up 10k for COE (don't include in car price already so can take 100% loan over 10yrs?) and goes for another guarantee COE (possible?) so AD still can bid at 60k to 68k range. It will take another few more rounds before the drop can be seen, but who knows - are they patient enough to wait or change rules again cos used car dealers grumbling?

 

If they keep changing rules, good luck 2016.

[Ghost898]

Beg to differ Bro, Used cars dealers send almost all their cars to Paint and Grooming Shops. That is because we know if a car don look good it wont sell.

 

There are quite a number to paint and grooming shops that focus on car dealer business. They give us cheaper rates in exchange of guaranteed business.

 

As for the upkeeping of cars by owners, Servicing and changing wear and tear of parts yes, but many are reluctant to spare extra cash and effort to respray or re upholstery.

 

Every Industries there are black sheeps. I hope you wont judge us altogther.

 

And yes im a car dealer. Joining the forums as im rotting in office with hell lots slower sales and hoping to gain some insights from car owners/ buyers and also hope to share some knowledge with you guys...

 

sibei lame ... go check out sin ming, ubi, bukit merah, etc

workshop business sibei good .... since many hold on to their cars ... many are more willing to upkeep their car to drive for the next few years

servicing, changing of wear and tear parts, re-spray even change color, re-upholstery, etc ...

 

used car dealers are the biggest liar !!! kenson, go open a workshop la ... sure huat till you drop

 

[Yenyenpark]

Beg to differ Bro, Used cars dealers send almost all their cars to Paint and Grooming Shops. That is because we know if a car don look good it wont sell.

 

There are quite a number to paint and grooming shops that focus on car dealer business. They give us cheaper rates in exchange of guaranteed business.

 

As for the upkeeping of cars by owners, Servicing and changing wear and tear of parts yes, but many are reluctant to spare extra cash and effort to respray or re upholstery.

 

Every Industries there are black sheeps. I hope you wont judge us altogther.

 

And yes im a car dealer. Joining the forums as im rotting in office with hell lots slower sales and hoping to gain some insights from car owners/ buyers and also hope to share some knowledge with you guys...

 

 

yeah, i know.. basically there are special price for dealer.. sometimes few hundreds cheaper for dealer (traders)...

 

i went to a dealer, he said u buy what what u see... u see what u get.. meaning they won't wanna groom or touch up for buyer.. but instead lower the price abit for the sale.. dun wanna hold too long on their stocks...

 

so with higher COE, what is ur view on second hand market? better? or same same?

[Ghost898]

Dealer are scared. We are still extremely uncertain about the movement. There are still buyers around willing to pay the downpayment, but insufficient to substain the dealers around. Many are going to close, just like in the 90s.

 

The loan curb had discouraged people to change cars and Owners who want to sell their car met with extreme difficulties due to the price crashes after the MAS announcement

 

As such, Used Car supplies dropped by more than Half, from moving average of 14k to 6-7k.

 

And Higher COE always means bad news. Despite the loan curb, COE is still damn high.

 

With Supplies getting lower and new car at sky high prices, Chances are that used car prices are going to increase too due to the low supply. That is if there are more buyers than sellers, which is highly possible since owning a car in singapore is like a dream to many of us.

 

Miss those days where a used jap sedan is ard 500 mthly...

 

 

yeah, i know.. basically there are special price for dealer.. sometimes few hundreds cheaper for dealer (traders)...

 

i went to a dealer, he said u buy what what u see... u see what u get.. meaning they won't wanna groom or touch up for buyer.. but instead lower the price abit for the sale.. dun wanna hold too long on their stocks...

 

so with higher COE, what is ur view on second hand market? better? or same same?

 

[Yenyenpark]

Dealer are scared. We are still extremely uncertain about the movement. There are still buyers around willing to pay the downpayment, but insufficient to substain the dealers around. Many are going to close, just like in the 90s.

 

The loan curb had discouraged people to change cars and Owners who want to sell their car met with extreme difficulties due to the price crashes after the MAS announcement

 

As such, Used Car supplies dropped by more than Half, from moving average of 14k to 6-7k.

 

And Higher COE always means bad news. Despite the loan curb, COE is still damn high.

 

With Supplies getting lower and new car at sky high prices, Chances are that used car prices are going to increase too due to the low supply. That is if there are more buyers than sellers, which is highly possible since owning a car in singapore is like a dream to many of us.

 

Miss those days where a used jap sedan is ard 500 mthly...

 

 

those day also not long ago.. about 3-4 years ago.. u still see it.. and probably will see it again.. but for home price, dun think anyone will see it at 200k below in next decade.. unless major economy meltdown in Sg

[Ghost898]

Yea man. Back then Used car dealers are making a fortune, people can afford cars without hefty installments. Everyone was happy. Too bad i was still stuck in NS back then.

 

Hell yea, i seriously wonder how im going to buy a HDB in time to come. Somemore for 0 Basic Sales Exc like me, Banks wont wanna loan me $$...

 

Anyway Guys,

 

Few things to take note before confirming a deal with the dealer.

 

- Insist to see the vehicle log card and vet the information yourself.

-Deposit is NOT DOWNPAYMENT. Pay the Downpayment only when you are collecting your car. (Deposit range from $500-$5k depending on the car and what the dealer might have to pay upfront for you etc- grooming, respray of car etc)

- For Car Condition wise, ask someone with good knowledge in car ( Be sure that he know his stuff!) to go down with you if do not know how to check.

Or alternatively send it to a trusted workshop to do the check for you. But be informed that wear and tear are common stuff. Don be turned off by common wear and tear when it might be a good deal right in front of you.

-Loan applications takes a maximum of 2 weeks... Maybank, Standard Chart Hong Leong all these might take longer.

- Insist on receipts when you make any payment.

- Insist on immediate transfer of vehicle if you are buying cash.

 

Will Update if i recall anything else to take note...

 

 

those day also not long ago.. about 3-4 years ago.. u still see it.. and probably will see it again.. but for home price, dun think anyone will see it at 200k below in next decade.. unless major economy meltdown in Sg

 

[Fastfive1]

Yea man. Back then Used car dealers are making a fortune, people can afford cars without hefty installments. Everyone was happy. Too bad i was still stuck in NS back then.

 

Hell yea, i seriously wonder how im going to buy a HDB in time to come. Somemore for 0 Basic Sales Exc like me, Banks wont wanna loan me $$...

 

Anyway Guys,

 

Few things to take note before confirming a deal with the dealer.

 

- Insist to see the vehicle log card and vet the information yourself.

-Deposit is NOT DOWNPAYMENT. Pay the Downpayment only when you are collecting your car. (Deposit range from $500-$5k depending on the car and what the dealer might have to pay upfront for you etc- grooming, respray of car etc)

- For Car Condition wise, ask someone with good knowledge in car ( Be sure that he know his stuff!) to go down with you if do not know how to check.

Or alternatively send it to a trusted workshop to do the check for you. But be informed that wear and tear are common stuff. Don be turned off by common wear and tear when it might be a good deal right in front of you.

-Loan applications takes a maximum of 2 weeks... Maybank, Standard Chart Hong Leong all these might take longer.

- Insist on receipts when you make any payment.

- Insist on immediate transfer of vehicle if you are buying cash.

 

Will Update if i recall anything else to take note...

 

The easiest way to avoid all the messy loan crap is to pay for the car in full. No waiting for loan to be approved. No down payment needed. Just issue a cashiers order and the car can be transferred within a day if insurance clears. Though the norm is 2 days at most.

[Ghost898]

Damn True, I handed over a few cars bought by cash in less than a day.

 

But hell, Thats a lot of $$$! Even if i have the cash i wont wanna do that. Its crazy throwing so much cash in a depreciating asset! I rather let the bank earn my interest and take my $ somewhere else.

 

Oh ya. a point to add.

- Cheap does not necessarily good. I realised a lot of buyers are only looking at price to decide. Sometime a good condition well priced car is cheaper than a cheap lousy car in the end. Save yourself the hassle. Deals that are too good to be true are probably so.

 

The easiest way to avoid all the messy loan crap is to pay for the car in full. No waiting for loan to be approved. No down payment needed. Just issue a cashiers order and the car can be transferred within a day if insurance clears. Though the norm is 2 days at most.

 

[Fastfive1]

Damn True, I handed over a few cars bought by cash in less than a day.

 

But hell, Thats a lot of $$$! Even if i have the cash i wont wanna do that. Its crazy throwing so much cash in a depreciating asset! I rather let the bank earn my interest and take my $ somewhere else.

 

Oh ya. a point to add.

- Cheap does not necessarily good. I realised a lot of buyers are only looking at price to decide. Sometime a good condition well priced car is cheaper than a cheap lousy car in the end. Save yourself the hassle. Deals that are too good to be true are probably so.

 

Well there are a few schools of thought on this. My view is that I will not let the bank make money. Why should I pay more for something? Throwing so much cash on a depreciating asset? I do believe that's sales talk coming into play so that the dealership can get commission. Ultimately you'd be "throwing" more cash on a depreciating asset when you factor the interest. Take your money elsewhere? Not unless your supposed investment can bring returns higher than the interest on your car.

 

Yup. Agreed.

[Yenyenpark]

Well there are a few schools of thought on this. My view is that I will not let the bank make money. Why should I pay more for something? Throwing so much cash on a depreciating asset? I do believe that's sales talk coming into play so that the dealership can get commission. Ultimately you'd be "throwing" more cash on a depreciating asset when you factor the interest. Take your money elsewhere? Not unless your supposed investment can bring returns higher than the interest on your car.

 

Yup. Agreed.

 

 

like the money not enuff movie.. without installment can only buy 1 item, but with installment can buy 5 items..

 

cheap interest encourage business and individual to leverage, stretch beyond their mean.. to get what they want.. of course not necessary need...

 

car is 1 thing, u wont be surprise ppl buy multiple properties local and overseas on installments to get rental.. if property bubble burst.. well, chapter 11..

[Tigershark1976]

sibei lame ... go check out sin ming, ubi, bukit merah, etc

workshop business sibei good .... since many hold on to their cars ... many are more willing to upkeep their car to drive for the next few years

servicing, changing of wear and tear parts, re-spray even change color, re-upholstery, etc ...

 

used car dealers are the biggest liar !!! kenson, go open a workshop la ... sure huat till you drop

 

 

I wanted to say the same thing... more old car means more business for spray-painting and the car-grooming sector. Wonder they knows how things work... Just anyhow hantam...

[Hydrocarbon]

like the money not enuff movie.. without installment can only buy 1 item, but with installment can buy 5 items..

 

cheap interest encourage business and individual to leverage, stretch beyond their mean.. to get what they want.. of course not necessary need...

 

car is 1 thing, u wont be surprise ppl buy multiple properties local and overseas on installments to get rental.. if property bubble burst.. well, chapter 11..

 

Depends on whether the individual use the money on a liability or an asset lor (according to Rich Dad Poor Dad definition). If instead of buy one car, buy 5 car, lose job = GG. But if start car rental company, buy 5 car earn 5 times the rental, = Great Game.

 

Property also same la, more rental come in is always good. Just start an investment company and use it so if bubble burst, at most the company go bankrupt, not the individual lor.

[2BDriver]

Depends on whether the individual use the money on a liability or an asset lor (according to Rich Dad Poor Dad definition). If instead of buy one car, buy 5 car, lose job = GG. But if start car rental company, buy 5 car earn 5 times the rental, = Great Game.

 

Property also same la, more rental come in is always good. Just start an investment company and use it so if bubble burst, at most the company go bankrupt, not the individual lor.

Banker and Finance Companies will make the lending company directors to sign-in as security guarantors, so it's no way out to be exempted upon repayments default, personal assets are liable to be seised.

[Ernestchewjiyang0908021996]

Will the coe fall back below 40 k again

[Dark_flan]

It will fall to the old levels but needs couple of yrs to happen. Hopefully it is going down upon my car's COE is up if not simply renew it.