MAS Imposes Financing Restrictions on Motor Vehicle Loans

[Shimada]

swee la, COE confirm drop! Can I get a woot woot!?

[Mockngbrd]

So all those ppl kpkb about super high COE prices will get what they wanted finally?

 

 

[Sforester]

I was already pushing for the old system (max 70% load and max 7 years) and even though this is harsher, I seriously support this move. This will advocate prudence purchase. Case by case basis should not be in place. Car, unlike housing, is absolutely an luxury (even for the needy) at such high Coe price. Again, there are always loopholes which are unavoidable, esp for used cars. Dealers or over-zealous buyers will ask for higher 'selling price' on paper to get higher loan and longer payment period.

[Alim]

So all those ppl kpkb about super high COE prices will get what they wanted finally?

 

Their wish has come true finally.

 

I have been waiting for this.

[Nzy]

Finally. Those who have to take big loans to rent a car shouldn't even get a car in the first place.

[Mockngbrd]

red plate car GG

[Check13]

Good move that should tame COE by 50% over next 6 month n encourage financial prudence at the same time. Buy only iF you got money n can afford it. Simple message.

[TheRationalVoice]

MAS says that:-

 

"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."

 

Is there evidence to say that buyers have not been financially prudent and that they have been over extending themselves?

[Toothiewabbit]

more pple will be shopping for 5 yrs or older cars ...

Used car dealers now sweating on how to sell their units less than 5 years old sia

Edited February 25, 2013 by Toothiewabbit

[Vega]

then 2nd hand car dealers eat what?

 

This is why Fandi Ahmad became Fandi Alamak !!

Edited February 25, 2013 by Vega

[Sdxx]

Those who signed purchase agreement today affected or not? Loan being processed under new rule or old rule?

[Galantspeedz]

等你等到我心痛！！！

[Jujitsuka]

Wonder what is going to happen to all the sgcarmart advert sales? Most prob will plummet like siao as AD and PIs cut cost... All the Sgcarmart editors will be out of jobs by tmr...

[Zxcvb]

Those who signed purchase agreement today affected or not? Loan being processed under new rule or old rule?

 

Today is old rule. Tomorrow is new rule.

 

If loan is approved today by 2359, then old rule. If loan haben approve yet, by tomorrow gotta fork out 40% upfront and reduce to 5 year loan?? Better call your agent to check.

[Rezorn86]

Uncle Lui dunno shld thank your cooling measure or not ...

[Fastfive1]

MAS says that:-

 

"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."

 

Is there evidence to say that buyers have not been financially prudent and that they have been over extending themselves?

 

Why don't you look at the number of repossessed cars in the market?

Lots of people live on a shoe string budget just so they can have a car to drive.

Some resort to buying second hand OPC cars just so that they can save a hundred dollars or so on their monthly installment because that hundred bucks is something they cannot let go.

[Rezorn86]

Those who signed purchase agreement today affected or not? Loan being processed under new rule or old rule?

I think bank wll base on the purchase agreement date to approve it.

[Sdxx]

Today is old rule. Tomorrow is new rule.

 

If loan is approved today by 2359, then old rule. If loan haben approve yet, by tomorrow gotta fork out 40% upfront and reduce to 5 year loan?? Better call your agent to check.

 

I see. Thank you. Does not affect me but just curious. Booked my car last month and secured Coe last month too.