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MAS Imposes Financing Restrictions on Motor Vehicle Loans


Fabiaman
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Pity to those outdoor sales staff who will need a car to earn money, now they will have to fork out couple of ten thousands for their car purchasing downpayment to keep their job [knife]

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You serious? So fast layoff salesman, anyway if they join during 2010 period, they have earn alot the past 3 years already lah, hope they find new job soon.

 

yeah. probably as insurance agents... financial advisers... propoerty agents... durian sellers...

 

the usual ilk. [laugh]

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Neutral Newbie

Pity to those outdoor sales staff who will need a car to earn money, now they will have to fork out couple of ten thousands for their car purchasing downpayment to keep their job [knife]

 

There's taxi. If not 2nd hand car that cost ard 40k. Anyway sound like buyers market for resale now. No need scare for them.

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Come on lah, theres a limit to some things. You want full cash rule too?

 

You just can't please everyone can you.

 

I feel that if you can't afford the COE in the first place, you can't afford a car at all.

 

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The thing is if car price cheap, more people would be able to buy so = more cars on road. But if the car price is expensive, lesser people can afford to buy cars so = less cars on road lo. When COE was super low back then, seems like any tom, dick and harry on the street buy a car?! [rolleyes]

So, when price is expensive, existing owners will scrap their car and take bus = fewer cars on the road? If not, what happen to their number?

 

Now they have created another problem, when coe crash a lot of people who buy car last 2-3 years will fall below negative equity and more people declare bankrupt

If those buyers are going to be declared bankrupt due to buying of cars, they will go bankrupt regardless of this new policy. I've not heard of banks asking car owners who pay their installments faithfully to top up money if they want to continue serving the loan.

 

The next round of COE may not paint the full picture yet. Guess the dealers may bid high due to a surge of orders from buyers who crowded the showrooms till late last night.

If I were a dealer, it is in my interest to delay the bidding in order to secure cheaper COE or at COE price below the rebate level.

 

I think the biggest change we will see is more buyers going in to long-term leasing of cars, rather than hire purchase.

 

I don't think the MAS ruling affects leasing.

 

Perhaps the second-hand car dealers may have to work out something to earn some $$ from the cars they have taken in at a high price.

 

The worst part is that there will be difficulty releasing new COEs. With the price that dealers take in, they will make a big loss no matter what. The used car market may not really move. Perhaps the older cars which are cheaper will move first. The effect can only be seen in 1 to 2 years' time.

 

The irritating part is that the ruling doesn't affect the rich (but the car was always supposed to be a luxury good until the $2 COE popped up), which includes all the people who came up with the ruling.

 

The best part is the demand for new COEs will drop.

How many dealers with '08-10 cars have the monetary power to hold their cars for so long? Their cash flow will be severely affected because they paid cash for their inventory. Exporting the car will also kill them due to their low COE premiums. I foresee many dealers closing shops or use consignment method to sell cars.

 

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Pity to those outdoor sales staff who will need a car to earn money, now they will have to fork out couple of ten thousands for their car purchasing downpayment to keep their job [knife]

 

The outdoor sales staff will be branded as stupid if they make this move..... They can easily purchase cars that are left with 3 yrs and don't feel much impact... Also they can either ask for more allowance, or change to indoor sales and take cab when need to travel to meet customers.

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yeah. probably as insurance agents... financial advisers... propoerty agents... durian sellers...

 

the usual ilk. [laugh]

 

They will be fighting jobs with those Army regular that resign [lipsrsealed]

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There's taxi. If not 2nd hand car that cost ard 40k. Anyway sound like buyers market for resale now. No need scare for them.

 

Correct, I just saw a 2006 Jan Altis going for less than 30k, down pay 15k, mthly repayment 400+, it's good enough for them!

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Honestly, i find this is the best move PAP has ever implemented! [thumbsup] Like what many ppl say, NO MONEY DON"T BUY! As simple as ABC... [cool]

 

Actually, it does not make sense to encourage prudence by forcing people who did not exercise it to suffer paper losses. The PAP was the government in place which allowed the the current situation to fester in the same place.

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How many dealers with '08-10 cars have the monetary power to hold their cars for so long? Their cash flow will be severely affected because they paid cash for their inventory. Exporting the car will also kill them due to their low COE premiums. I foresee many dealers closing shops or use consignment method to sell cars.

 

Most dealers don't really have such cash flow to keep so many cars at a time, normally they loan from bank at a special interest, which is why we see some cars are marketed aggressively after staying at SGCM for too long. These dealers will most likely go first if their cars don't move.

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Actually, it does not make sense to encourage prudence by forcing people who did not exercise it to suffer paper losses. The PAP was the government in place which allowed the the current situation to fester in the same place.

 

 

Wanna blame? Blame on MBT.... He is the one that release so much COE and then tarik back by claiming he mis-calculated, with so low supply and extreme high demand, everyone just keep cheonging and push the price sky high since the mthly repayment is so affordable...

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Wanna blame? Blame on MBT.... He is the one that release so much COE and then tarik back by claiming he mis-calculated, with so low supply and extreme high demand, everyone just keep cheonging and push the price sky high since the mthly repayment is so affordable...

 

Alot of things can be traced to this bugger lo.

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Last night i went to VGS to check out their JETTA and i am still able to book with full loan instead of 50% down payment ($63k) . However they quote shXX price for my Jazz Nov 2006 at $20000. I was totally swept off my feet WTF $20000 thus keeping my small little jazz :( I believe all the car dealers are quoting lousy price to see if they are able to get that pot of gold due to market panic. My 2 cents

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How does this new rule affect used car loans?

1). if i want to buy a 2010 car @ $80k(OMV $18k) still left 7 years to drive &

2). if i want to buy a 2006 car @ $30k(OMV $18k) still left 3 years to drive

 

Can anyone give show an example on how the loan is going to work out?

does the OMV still affects the downpayment amount?

car with more than 5 years left still can get loan up to 5 years? or the loan tenure cannot exceed 5 years of the car's age?

Edited by Turbonetics
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1). if i want to buy a 2010 car @ $80k(OMV $18k) still left 7 years to drive &

2). if i want to buy a 2006 car @ $30k(OMV $18k) still left 3 years to drive

 

2010 car

Max loan tenure 5 years

Max loan allowable $40,000

 

2006 car

Max loan 3years serve out remaining

max loan $15,000 (cheaper in this instance)

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1). if i want to buy a 2010 car @ $80k(OMV $18k) still left 7 years to drive &

2). if i want to buy a 2006 car @ $30k(OMV $18k) still left 3 years to drive

 

2010 car

Max loan tenure 5 years

Max loan allowable $40,000 (Wrong - should be $48,000. OMV < 20k, loan up to 60%)

 

2006 car

Max loan 3years serve out remaining

max loan $15,000 (cheaper in this instance) (As above, max loan should be $18,000)

 

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