Jump to content

Tharman: no point restricting loans for COE


Mllcg
 Share

Recommended Posts

http://www.channelnewsasia.com/stories/sin...1177383/1/.html

 

SINGAPORE : Finance Minister Tharman Shanmugaratnam has said that not allowing banks to finance Certificate of Entitlement (COE) prices will not be effective in moderating the rise in premiums.

 

Responding to a call by MP for Pasir Ris-Punggol GRC Gan Thiam Poh to set loan limits in order to moderate COE prices, Mr Tharman said people can turn to other borrowing avenues like car dealers and leasing companies to get around bank rules.

 

He said other factors play a bigger role in influencing COE prices.

 

"The more fundamental factors which impact on COE premiums include the economic outlook which shapes demand and the supply of COEs which is determined by the allowable vehicle growth. And by car owners' decisions on their own part to de-register, whether they decide to de-register their cars," said Mr Tharman.

 

He added: "Car loans granted by financial institutions do not pose threats to financial stability. These loans form a very small proportion of total loans in the financial system, or even of total consumer loans. And the proportion of car loans that are non-performing loans is low, extremely low."

 

- CNA/ms

 

↡ Advertisement
Link to post
Share on other sites

http://www.channelnewsasia.com/stories/sin...1177383/1/.html

 

SINGAPORE : Finance Minister Tharman Shanmugaratnam has said that not allowing banks to finance Certificate of Entitlement (COE) prices will not be effective in moderating the rise in premiums.

 

Responding to a call by MP for Pasir Ris-Punggol GRC Gan Thiam Poh to set loan limits in order to moderate COE prices, Mr Tharman said people can turn to other borrowing avenues like car dealers and leasing companies to get around bank rules.

 

He said other factors play a bigger role in influencing COE prices.

 

"The more fundamental factors which impact on COE premiums include the economic outlook which shapes demand and the supply of COEs which is determined by the allowable vehicle growth. And by car owners' decisions on their own part to de-register, whether they decide to de-register their cars," said Mr Tharman.

 

He added: "Car loans granted by financial institutions do not pose threats to financial stability. These loans form a very small proportion of total loans in the financial system, or even of total consumer loans. And the proportion of car loans that are non-performing loans is low, extremely low."

 

- CNA/ms

 

Actually I do agree with Tharman point. Let free market decide instead of set many restrictions because of people complain or unhappyness.

Link to post
Share on other sites

Actually I do agree with Tharman point. Let free market decide instead of set many restrictions because of people complain or unhappyness.

 

and over here in the forums, we have people asking for 70% loans, etc..

Link to post
Share on other sites

ONLY ALLOW BUYER TO BID FOR THEIR OWN COE.

BAN DEALERS FROM BIDDING COE FOR BUYER.

 

SIMPLE AS THAT

sometime ago already suggested, and they dismissed the idea without giving a try.

beocs they do not want to let the COE price go down

Link to post
Share on other sites

ONLY ALLOW BUYER TO BID FOR THEIR OWN COE.

BAN DEALERS FROM BIDDING COE FOR BUYER.

 

SIMPLE AS THAT

 

 

I agree on this solution

 

dealers want to close deal, so madly outbid each other.

Link to post
Share on other sites

sometime ago already suggested, and they dismissed the idea without giving a try.

beocs they do not want to let the COE price go down

 

The real reason given at that time was that most buyers BEG gov to allow the dealers to bid on their behalf, as not all buyers got the time and effort to self bid. Also buyers prefer the ease of one stop package, and they reasoned that the self bid and dealer bid COE are exactly the same, so why waste own time to self bid that still result in paying exactly the same price.

And the rest is history.

 

Now MCFurmers know the argument is flawed, but Still many many, i estimate 99 %, people still think self bid is silly.

Link to post
Share on other sites

Turbocharged

sometime ago already suggested, and they dismissed the idea without giving a try.

beocs they do not want to let the COE price go down

 

pls dun say out n pi char lobang [laugh] [laugh]

Link to post
Share on other sites

Turbocharged

The real reason given at that time was that most buyers BEG gov to allow the dealers to bid on their behalf, as not all buyers got the time and effort to self bid. Also buyers prefer the ease of one stop package, and they reasoned that the self bid and dealer bid COE are exactly the same, so why waste own time to self bid that still result in paying exactly the same price.

And the rest is history.

 

Now MCFurmers know the argument is flawed, but Still many many, i estimate 99 %, people still think self bid is silly.

 

dun self bid can, buy direct from dealer who will supply open cat COE lor...

 

if u are lazy, then u have to pay a bit more premium for the service right??

Link to post
Share on other sites

Turbocharged

I agree on this solution

 

dealers want to close deal, so madly outbid each other.

 

isn't this wat is happening now? [rolleyes]

Link to post
Share on other sites

isn't this wat is happening now? [rolleyes]

 

its taxi companies more than dealers.

 

remember the fine print at the bottom of the COE allocation page.

 

they can use old COE to rollover to new taxis.

 

but they bid is to increase fleet

Link to post
Share on other sites

Lets go back to the days whereby a 20-30% downpayment is required..then ppl will buy cars realistically rather than on impulse.

 

People can still take a loan for that 20% through other sources.

↡ Advertisement
Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...