MAS Imposes Financing Restrictions on Motor Vehicle Loans

[Elfenstar]

theres 2 loopholes.

 

one can take a personal loan for the downpayment and car loan for the remainder

 

Initial payments will be a biatch man. If someone could afford such initial payments, he/she might as well save up for a short while and just buy a car outright. For me this loan rate and tenure is great. When I last enquired about a couple of cars to change to, the dealers said I should take a of min 70% loan for 5 years, then settle after two because I told them I wanted to pay in full (my mom taught me to buy whatever I can afford to pay in full only).

[Soya]

6. I like it that unproductive used-car dealers who add no value will be forced to liquidate.

 

 

ya and those knnccb ah beng salesman can go back to selling pirated vcd.....

[Jackzhangxiao]

So the gov is trying to approve that if LTA can't do anything to lower down the COE price, the MAS can!

 

But don't forget that banks are more clever. (If they want to be). Lets say you can only take 60% loan. So you need to pay 40% upfront. So bank will loan you this amount, with a different, higher interest rate, and named this loan differently from car loan. For example like personal Loan or whatever. So you still can pay the 40% by taking loan from the bank.

 

Of course, the 5 years is unbeatable.

 

Anyway, this time the gov is really doing something seems going to work. Keeping those who hardly afford a car away from the market.

[Jerms]

Basically the government is telling you... COE $20K is not for you to go and buy Ferrari.

 

And the government is also telling you, if your bank got only $5-10K don't go and buy a car.

 

Which I think is totally correct.

 

 

i think i know you from another forum :P

[Elfenstar]

Am divided in the opinion. While I dont agree that the government has to decide whether I am prudent in my spending or not, or forcing a policy on me so that I am prudent in their eyes. My choices are mine and the lenders have all the freedom to decide whether they should lend me money or not. If I am not prudent, dont have the wherewithal to pay the EMI the banks should refuse rather than Government putting a condition so that I am prudent.

 

On another note, this should definitely bring down the COE. Atleast that is what I think which is a good thing. Instead of paying 90k COE over next ten years, I might choose to pay 50k COE and 50k down payment. Again this measure just solves the symptom and not the root cause. The car density of Singapore is no different from that of San Francisco. That city has @850 cars/sq kilometer. Singapore has @815 cars/sq kilometer area. These are rough indicators of how big cities cope up with automobile population without resorting to practices like COE but better traffic management. The paranoia that removal or reduction of COE will result in explosion of cars causing more traffic jams is still to be assessed. The method worked earlier but it is time to reassess it rather than clamping down on the money supply for automobiles.

 

Nainar

 

 

I don't think this is about us. I believe they expect the market to go south, and are trying to save our banks

[Ooosh]

I feel the younger generation doesn't really value the virtues of being frugal. That's the result of parents being overly protective and excessive pampering.

 

Many of this young prince and princesses are not even from a rich family, most stay in HDB flats, comes from at most middle income families but they love going out to society painting an aura of success around them.

 

Many have the impression of being high-class boils down to their ability to appreciate "fine arts", western films, music and well... food.

 

Its true that money cannot buy class, but class differs from "self delusional" class and in this case, doesn't buy them status.

 

Time for the younger generation to wake up....

 

OMG this is such a shallow post.

Where do you see this? Please give examples.

So you mean the younger generation should eat at hawker center everyday to show to the older folks that they are frugal?

[Majordan]

This benefits people who cannot afford 90k COE cos COE will drop

 

picanto's will be damn cheap if COE falls and 40% downpayment is not significant for a 40k car

 

plus there are cashlines around

 

its back to the old days when Toyota and Hyundai and Kia will rule the roads

[Detach8]

Management of car population includes increasing the amount of parking space. It is already a problem. You can't just uproot a building in CBD area and plant more parking. There's no space. If the parking prices went up double or triple, then a lot of car owners will be f--ked.

[Detach8]

OMG this is such a shallow post.

Where do you see this? Please give examples.

So you mean the younger generation should eat at hawker center everyday to show to the older folks that they are frugal?

 

if they only make $1.6k-1.8k a month, why not? can eat out atas once in a while, but not everyday.

Edited February 26, 2013 by Detach8

[Detach8]

i think i know you from another forum :P

 

lol bmw-sg?

[Lurpsexx]

as long job sector strong, bankrupt wont happen much. but my gripe is mishandling of consumer loans since 2010 which allowed property n cars to jump so high. For them is not mishandling coz higher asset prices = higher tax revenues lor, so judge for yourself wat is right n wrong

 

+1 Agree

[So_nice]

OMG this is such a shallow post.

Where do you see this? Please give examples.

So you mean the younger generation should eat at hawker center everyday to show to the older folks that they are frugal?

 

 

i agree wif him money cant buy class. cuz it doesnt seems to buy him any. mcf simply got too many elites gloating over the poor and middle class. guess we just haf to live wif it

[Majordan]

I like your analysis. Very clear.

 

We have to wait at least another 2 rounds because there's backlogs to clear. COE will remain high this month, or at least in the next bidding.

 

My thoughts are summarized here: http://www.tzlee.com/blog/?p=1681

 

Quote:

 

Here's what I think:

 

• COE prices will drop; I am guessing to 2010-2011 levels or between $30-60K.
• If COE prices drop as I thought, this means that new car prices will drop across the board by $30K or more.
• Used car prices will also follow the drop in tandem with new car prices, albeit with a delay. A lot of used car dealers took in cars at inflated values over the past 2 years will have to let their overpriced stocks erode. So my advice is to wait a bit.
• Loan interests will go up. The supply-demand concept does not work in our car market because the demand is relatively inelastic. Recall in 2008 interest rates were 2.8% despite cars being cheap and demand being high. With the new rules banks lose about 75% of their revenue and will find ways to recover them.
• Cashback schemes and overtrades will be back with a vengeance. Interest rates for these schemes may go up to 6%.
• Relatively new cars purchased between late 2010 to early 2013 will suddenly lose their resale value as COE prices tumble. Owners of these cars will have to hold on to their cars longer before selling. Car modification workshops will huat.
• Used cars above 4 years of age suddenly becomes viable again. People who are tight on finances will be able to buy older cars with much lesser initial outlay.
• COE renewal will become viable again as COE prices tumble. The cash outlay for a COE renewal versus down payment for a new car are going to match up really close. We will start to see a lot of old Nissan Sunny and Mitsubishi Lancers. Repair workshops will huat.
• Hopefully prices of motor insurance will drop due to reduced car prices, but I think that would be fat hope.

 

encouraging people to extend COE and not buy new cars doesn't make sense from a policy perspective. Number of cars on the road still the same. Old cars mean breakdown more often or more prone to accidents. Insurance premiums can go up.

 

I think once the used car shops get rid of old and overpriced stocks, they can flourish again cos upfront outlay will be much lower for old cars

[So_nice]

encouraging people to extend COE and not buy new cars doesn't make sense from a policy perspective. Number of cars on the road still the same. Old cars mean breakdown more often or more prone to accidents. Insurance premiums can go up.

 

I think once the used car shops get rid of old and overpriced stocks, they can flourish again cos upfront outlay will be much lower for old cars

 

older cars means more breakdown and more prone to accident? i think u seldom drive huh

[Detach8]

i agree wif him money cant buy class. cuz it doesnt seems to buy him any. mcf simply got too many elites gloating over the poor and middle class. guess we just haf to live wif it

 

maybe look into the mirror

 

most of us grew up the same. i, for one, stayed in hdb, study neighbourhood school, go to poly, and got my diploma and now working.

 

money don't drop from the sky.

 

eating atas does not make you "high class"

 

eating hawker does not make you "low class"

 

its the way ppl think that makes them "low class"

 

by saying when people suggest one to be frugal and eat hawker center means that the person has no class, your statement is really low class.

 

it is no different from my female friends who tell me they need that LV or Prada bag because it is a "proper bag". otherwise they no class, no face. to me, the way they see things very low class.

 

and that's why some people can never attain the level of wealth and complain about it everyday.

Edited February 26, 2013 by Detach8

[Detach8]

encouraging people to extend COE and not buy new cars doesn't make sense from a policy perspective. Number of cars on the road still the same. Old cars mean breakdown more often or more prone to accidents. Insurance premiums can go up.

 

I think once the used car shops get rid of old and overpriced stocks, they can flourish again cos upfront outlay will be much lower for old cars

 

You haven't seen relatively new cars break down?

 

How many of those old merc w124 on the street still going strong. those cars only $20-30K to buy, yet nobody buy and choose to buy brand new cars >$100K. With the extra $70K, everything in the car can be repaired.

 

COE renewal reduces wastage. Back in the old days COE renewal was not encouraged due to emissions but vehicles built in the last decade are relatively low in emissions already.

Edited February 26, 2013 by Detach8

[Jamessoh]

http://www.sgcarmart.com/used_cars/info.ph...696&DL=2454

 

i chanced upon this add.

 

can car dealers bypass garmen rule by offering finance from their own pockets?

[Forrestcat]

Sorry, MV Agusta is considered the Ferrari of bikes.

 

Whichever make Rossi rides, i consider it the Ferrari of bikes