MAS and Car loan curb issues

[Alheych]

LTA has an interest to curb car pop? I disagree... if they are really curbing pop, how could they have 'miscalculated' with 'overdose' of COEs in the market?

 

With so many suggestions from public about COE enhancement, they choose to re-class by bhp? I doubt about their dedication to curb car pop.

 

they cock up doesn't mean they never try. if they don't have a task of controlling car population then need them for what? might as well let MOF decide on COE quota, let MOF enforce laws (not enough money jail less people, enough money jail more people).

 

i know many people take a cynical view of the government that the bottom line matters most. granted, our government is indeed more fiscal-minded than many others. but not everything can be traced to government revenue.

[Yeshe]

does not bother me cos if i want one, i just buy, regardless of the curbs or not.

 

what bothers me is the bloody @#%@#% jams will get worse with those who think their mother father dog cat goldfish will need one EACH....

 

as usual, pay full cash, best is ERP is $10 per entry si boh? [laugh]

[13177]

I would say they should seperate the rules on car loan between new and used car. Dont understand why they need to enforce the 5 years loan and 40% downpayment on used car? At least if people cannot afford new car, they have alternative choice of getting used car. As used car already part of current number of cars on the road, why not just allow people more easier on buying used car.

[Damienic]

I for one support going back to the tried and tested 70% loan and 7 yrs loan rule in the past. No down payment and10yrs loan is too ridiculous while 50% loan and 5 yrs loan is too extreme in that it is keeping a lot of people who is in genuine need of a car out.

[Carnoob]

I would say they should seperate the rules on car loan between new and used car. Dont understand why they need to enforce the 5 years loan and 40% downpayment on used car? At least if people cannot afford new car, they have alternative choice of getting used car. As used car already part of current number of cars on the road, why not just allow people more easier on buying used car.

This was brought up before, and there was no convincing answer from MAS. Used car dealers contested but still implemented.

 

MAS would rather they scrap the car and COE return back to LTA, then more quota for new cars... appears to try and get COE price down but unsuccessful. I would say they are rather cooperative to 'manage' COE but not the car pop.

 

If your suggestion were seriously look at, the COE price would fall because people will look for 2nd hand car which is already part of COE quota.

 

Call me a cynical peasant but that is all that is obvious. Now to keep COE price high, they are thinking of removing the loan curb and buying sprees will start again. I say stick to loan curb.

[GLZT]

Tuck yew tell everyone to wait for 2015/2016 cause by then more coe release so price will drop, now tharman say want to lift loan curb, lift already coe sure shoot back up.

Edited July 3, 2014 by GLZT

[L23]

Tuck yew tell everyone to wait for 2015/2016 cause by then more coe release so price will drop, now tharman say want to lift loan curb, lift already coe sure shoot back up.

What if i tell u to just buy now, will u listen leh?

[GLZT]

What if i tell u to just buy now, will u listen leh?

I already bought last June already. Haha.

[13177]

This was brought up before, and there was no convincing answer from MAS. Used car dealers contested but still implemented.

 

MAS would rather they scrap the car and COE return back to LTA, then more quota for new cars... appears to try and get COE price down but unsuccessful. I would say they are rather cooperative to 'manage' COE but not the car pop.

 

If your suggestion were seriously look at, the COE price would fall because people will look for 2nd hand car which is already part of COE quota.

 

Call me a cynical peasant but that is all that is obvious. Now to keep COE price high, they are thinking of removing the loan curb and buying sprees will start again. I say stick to loan curb.

Even loan curb apply both new and used car, but i still cannot accept that used car price is tag with the current coe pricing. Car suppose is a 'lose money' item, but how come pricing for a 5-6 year old car still can fetch about the same price or even higher than the original car price? Thinking how come LTA is not doing anything on this?!

[Vhtfhwlego]

I like that current loan restriction.

 

Walk to used car mart telling dealers u have cash, they treat u like a king.

 

If no loan restriction, dealer treat the full loan buyers like a king instead.

Edited July 3, 2014 by Vhtfhwlego

[Wt_know]

yeah ... last time dealer advertise ... rebate discount freebies bla bla bla

when go down showroom ... must take at least 70-80% loan 10 years

if not ... no rebate no discount no freebies

dealer want you to take high loan ... the comms that they got from bank is sibei ho jiak one

100% loan customer is KING ! they hate customer who pay cash ... you-know-who ... lol

 

I like that current loan restriction.

Walk to used car mart telling dealers u have cash, they treat u like a king.

If no loan restriction, dealer treat the full loan buyers like a king instead.

 

Edited July 3, 2014 by Wt_know

[Carnoob]

they cock up doesn't mean they never try. if they don't have a task of controlling car population then need them for what? might as well let MOF decide on COE quota, let MOF enforce laws (not enough money jail less people, enough money jail more people).

 

i know many people take a cynical view of the government that the bottom line matters most. granted, our government is indeed more fiscal-minded than many others. but not everything can be traced to government revenue.

Good question! But how many times they 'tried' and cocked up? One time, 2 times or 3 times? With ERP, with COE, and someone so smart to suggest mileage tax?!! And of course encouraging people to take public transport which keeps stalling, not on schedule, overcrowding, etc. Anyone remembers the article on the ST editor challenging the senior civil staff for MRT not failing not more than 30 mins? The civil staff has already lost the bet and no more report after that.

 

You're right they were given the task and unsuccessful, so what we need them for? It is not just about revenue but effectiveness. Every 'brilliant' idea starts from MONEY, where's the heart?

 

I don't mind MOF starts deciding on COE quota, MOF enforce laws IF they are effective in doing so. My bottom line is very simple, solve problems from the root. What had been implemented by LTA that had proven their existence and effectiveness? Convince me.

[2BDriver]

What farking idiot wrote that article?

 

Since when does the sales numbers of cars have anything at all to do with the loan curb? Is that sub-normal amoeba new to Singapore or something?

 

If there was anything less than "the maximum" possible number of cars being sold in Singapore - wouldn't the COE be sitting at $1?

 

Why would MAS need to remove the loan curbs, if the loan curbs are not restricting the number of cars sold?

Bro Darryn,

I am a simple minded person, simple enough to think why " From: July 2014 : MAS to revoke loan curb "

It is just because Singapore Bankers are out of business and they are the one that MAS care, they also speaks louder than any tradesmen within Financial Hub Governance

Edited July 3, 2014 by Fongmy

[Daniellica]

Shows a lack of coordination between government departments.

 

MAS has an interest in boosting retail performance.

 

LTA has an interest in curbing car population.

 

Both departments' civil servants are measured by the respective KPIs, often at the cost of the others'.

Reason is very simple.

The left hand never talk to the right hand.

[Carnoob]

Reason is very simple.

The left hand never talk to the right hand.

I would say it is a left pocket to the right pocket thing so why bother to tok

Even loan curb apply both new and used car, but i still cannot accept that used car price is tag with the current coe pricing. Car suppose is a 'lose money' item, but how come pricing for a 5-6 year old car still can fetch about the same price or even higher than the original car price? Thinking how come LTA is not doing anything on this?!

Thank you, you had once again proven how 'effective' LTA has become... but car price is not under the 'care' of LTA (standard reply)...

[leonchew]

Perhaps a "pay for COE in cash" and no restrictions of car financing would work? I think it would be abrupt for the authorities to do a U-turn and lift the restrictions entirely.

[Alheych]

Good question! But how many times they 'tried' and cocked up? One time, 2 times or 3 times? With ERP, with COE, and someone so smart to suggest mileage tax?!! And of course encouraging people to take public transport which keeps stalling, not on schedule, overcrowding, etc. Anyone remembers the article on the ST editor challenging the senior civil staff for MRT not failing not more than 30 mins? The civil staff has already lost the bet and no more report after that.

 

You're right they were given the task and unsuccessful, so what we need them for? It is not just about revenue but effectiveness. Every 'brilliant' idea starts from MONEY, where's the heart?

 

I don't mind MOF starts deciding on COE quota, MOF enforce laws IF they are effective in doing so. My bottom line is very simple, solve problems from the root. What had been implemented by LTA that had proven their existence and effectiveness? Convince me.

 

as a regular bus commuter (i don't drive all the time), i am convinced that the BSEP has led to better frequencies in the past year or so. for singaporeans, many of whom don't have the privilege or feel relevant enough to surf MCF, this is something that makes a real difference to their lives.

 

the problem with LTA that i see is that they are too rational when singaporeans are not. take ERP for example - you pay for what you use: a beautiful economics concept that no other country in the world has managed to implement back then. at the same time they reduce OMV taxation from 160% to 100% to compensate for the extra that you have to pay in ERP (since you can no longer use one coupon for the whole day). but do you thank them for reducing your OMV tax? you will only curse chao cheng hu whenever you pass by an ERP gantry. this is where LTA fails to consider people's feelings.

 

you mentioned a "root". what do you think is the root? i really really have no idea. no matter what the root is, singaporeans' desire for a car can somehow overpower it time and again, be it COE, ERP, MCE, road tax, not enough parking or congestion.

[Voodooman]

Judging from the many posts in MCF complaining of the loan curbs, the govt is just playing to the gallery as many prefer to pay more for COE using borrowed monies, never mind they are screwing themselves twice (paying for higher COE and borrowing monies to spend on luxury items for consumption), 100% financing is the best.

 

The lack of self control is the problem. Like animals, these people prefer immediate over delayed rewards, even when patience would yield a much bigger payoff. This phenomenon, known as temporal discounting in economics explains why it is so difficult to get teenagers to save for retirement or why it is impossible to leave a dog at home with enough food for a week and expect it to ration its consumption.

 

Source: Decision Making: The Virtue of Patience in Primates by Arwen Long and Michael Platt

Edited July 3, 2014 by Voodooman