43% of used cars qualifying for full loans sold at halfway m

[Gearosv2]

bro CPI is Consumer Price Index, stocks arent known as consumer items, just as bond arent. Cars are coz they are stuff we buy for daily use/consumption, hence consumer tag.

 

Yes COE must b factored in coz it affects the value chain cost. eg. higher coe for vehicles = higher transport cost for biz = higher food/goods cost for consumers.

 

Thanks for clarification... hai... if only COE is not part of our car buying equation... zzzz...

 

Cheers,

Kimu

[Newinasia]

5year vs 10 year COE Renewal

 

Wanted to understand why the smart policy makers implemented such an odd policy.

 

1. If you renew your COE for 5yrs, you no longer can renew it at the end of 5 years.

 

2. If you renew it for 10 years, you can renew it again.

 

3. So please spend more money on the COE or you give up your car.

 

4. The policy makers will probably tweek the policy by reducing the car dealers utility bill.

Then after 3 months they find put it is not working ( after scratching each others head or bottoms).

They will call for public feedback.

Then 6 months later ( after even more scratching) they will put in a brilliant new policy.

 

5. They will give you an option to renew for 5 or 10 years depending on the condition of your car.

 

6. Anyone have a different opinion?

 

 

 

[RadX]

Looks like another round of selling house, see MP, cry, new chicken rice seller blah blah

 

 

http://www.channelnewsasia.com/news/singap...rge/748714.html

 

 

Used car dealers urge authorities to review car loans curbs

 

SINGAPORE: The Singapore Vehicle Traders Association which represents the interests of over 400 used car dealers here is renewing its call for a review on car loan curbs.

 

It said many dealers have seen sales drop by between 30 and 80 per cent since the 60-day reprieve period ended in early June.

 

Used car dealers sold most of their stock of about 7,000 cars during the 60-day reprieve period from April 6 to June 4.

 

Before the loan curbs kicked in, buyers used to be able to take up to 100 per cent loans for car purchases.

 

Now that they are unable to do so and dealers are feeling the pinch once again.

 

Raymond Tang, honorary secretary of Singapore Vehicle Traders Association, said: "In July, the situation is very bad. We have made a survey and majority of the dealers are not selling (well)."

 

Under current rules, buyers of both new and used cars can only get a loan of up to 60 per cent.

 

The loan period is capped at five years, down from 10 years.

 

Dealers said sales have also been affected by a smaller supply of used cars in the market as more people hold on to their cars.

 

Vincent Wong, director of First Automobile Premium, said: "We have actually experienced as much as a 30 to 40 per cent of depletion of sales and generally to us, it is quite an extensive impact. For the dealers to recover their stocks and replenish their stocks, it is quite difficult at this point of time.

 

Mr Wong added: "For many of these people, they are not able to change and so they are holding on to their cars. The dealers are also very careful in the valuation of cars. They cannot be buying too high and if they do, it will put themselves in a big financial difficulty."

 

The loan curbs were introduced to encourage financial prudence.

 

The Singapore Vehicle Traders Association said Certificate of Entitlement (COE) prices are still high in recent bidding rounds.

 

Prices for both small and big cars were over S$70,000 in the latest bidding round.

 

The association has proposed that used car buyers be able to borrow up to 80 per cent of loan which can be serviced over eight years. It said the move will help ease COE premiums.

 

Mr Tang said: "In this way, I feel that it might help to stabilise the COE premiums because they might pull a small group of people from buying a new car to the used car. If there is a small group of people coming over, that might also slow down the demand on the new car.

 

"Eighty per cent is quite a fair bit because in terms of used car, it is more towards the mass market and middle and lower income people. I think that telling them to fork out at one go of 40 to 50 per cent of down-payment is might be a very heavy amount for them."

 

The COE quota for the next six month period starting from August this year to January next year will be about eight per cent higher.

 

However, dealers said it will unlikely to have much of an impact and bring down COE prices significantly."

 

The association intends to submit its proposal to the Monetary Authority of Singapore this month.

 

- CNA/fa

[Celicar]

Basically, they can only makan others, they cannot lose money.

[Timex1441]

the car dealers talk co-co-kay lah....the reasoning of "80% loan over 8 yrs can pull some buyers fr new car to used car market", wow, really no logic....if can afford to buy new car with only 50%-60% loan, it means the buyer already got the $$ power, so why would he be enticed by the 80% loan n buy a used car if rules r changed?

[Ictruall]

if ah tang got his way,... was just wondering if transfer one day old car from father to son can qualify for used car 80% loan or not..

 

remembered super long time ago, bought used car but on the physical log card (those days) had already 2 owners, however transfer to second owner was made just one day after new car registered....

 

back then it was not uncommon, tried to recall but simply cannot remember why leh....any next better memory ?

[HappyMushroom]

Dun understand his logic.

 

Lower ur car price and u will attract ppl. Many of them buy low low and sell high high... Not willing to cut price.

Sigh...

[Fastfive1]

Are you kidding me??? Clearly Mr Tang has absolutely no background in economics. Allowing cheaper and easier credit will only result in an increase in demand and push prices up. Even if new car prices go up and result in people turning to second hand cars, these cars will be equally over priced. Hopefully the people at MAS realise how illogical his proposal is.

[RadX]

Are you kidding me??? Clearly Mr Tang has absolutely no background in economics. Allowing cheaper and easier credit will only result in an increase in demand and push prices up. Even if new car prices go up and result in people turning to second hand cars, these cars will be equally over priced. Hopefully the people at MAS realise how illogical his proposal is.

 

 

dun pray pray....once see MP...trump card nia.... [laugh]

[Hosaybo]

Alot of times, what was said are simply excuse to get what they want. Logic has no relevance.

 

What i observed is that old car price seems to have gone up recently.

[Myxilplix]

"The loan curbs were introduced to encourage financial prudence."

 

The used car dealers are discouraging financial prudence.

[Wahlaoeh]

they can cry more but MAS wont care this round. The situation is quite different now.. S$ has since then adjusted its trading band to boost competitiveness in export, particularly against these big export hubs in asia. COE also fell to a comfortable level to them as inflation YoY also reaching their target. our government nvr change anything if it is working. this time round it will be the same.

[Forte3737]

since sales of 2nd hand cars are poor, why they cannot sell at a lower price to survive?

[Jordanplus]

The 2nd hand car price never been drop even after 4 June.

[Sugar]

maybe MCF should send in letter to MAS too.....say should keep loan/DP as they are

Edited July 18, 2013 by Sugar

[Jman888]

the spoke person say the down payment 40% is too much as people who buy used car are middle and low income group [rolleyes]

[Scholesy]

buy direct is fast, more efficient, cheaper, no tamper of odo, no funny last min kick ball fees, no ah beng ah seng, no more owner 4th car, only let maid drive to mkt, the transfer count of 2 is between father n son nonsense - meet the real owner, so what value add from car dealers? only damage-add haha

[Jq1988]

Too many bad used car dealers out there, they have destroyed those who are honest! To ease the pain, better get from big companies or AD!!