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Dealer latest stunt to get around loan restriction

Coolad

By Coolad,
in General Car Discussion

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Darryn

Darryn

Turbocharged

Not the 1st time to see this... but this 1 really over the top

 

Previous price was 153k... then suddenly become 275k... (shld be apply for 50% loan using "new" list price)

 

http://www.sgcarmart.com/used_cars/info.php?ID=340976&DL=1389

Heh -PML is offering the same car, brand now at $300k

 

This car has a $36k COE while the new one has a $60k COE - so a 2 year old car, worth more than a brand new one?

 

Whoever approve the loan is stupid....also if whoever administer the minimum loan requirement should not be stupid - if they get caught out I laught!

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Darryn

Darryn

Turbocharged

That price you can get a almost new Audi A7 3.0 or even a 2010-2011 BMW 740Li... So a 335i costs more than a 740Li? [laugh]

How to compare like that - totally different cars.

 

Mind you - at that price, the M4 becomes mighty attractive!!

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joshua182

joshua182

1st Gear

I think what TS is trying to put across is that the 275K asking price should be divided by 2, into $137.5K... which is 50% of 275k, so it means that buyer can take a "50%" loan, which means a 100% loan. The dealer is not asking 275K for that 2010 Beemer. This is a new trick indeed. Does it even work that way?

 

 

 

Unless I'm wrong and in that case, dealer is nuts.

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Vhtfhwlego

Vhtfhwlego

Supercharged

If I'm a dealer I will have description in this way.

 

2 years old car with balance 18 years COE.

T&C, look for us in 8 years time to renew your new 10 years COE.

 

Loan is 50% of agreed price.

Market value is what people will pay now.

New Market Value would be drive a car for more than existing COE.

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Darryn

Darryn

Turbocharged

I think what TS is trying to put across is that the 275K asking price should be divided by 2, into $137.5K... which is 50% of 275k, so it means that buyer can take a "50%" loan, which means a 100% loan. The dealer is not asking 275K for that 2010 Beemer. This is a new trick indeed. Does it even work that way?

 

 

 

Unless I'm wrong and in that case, dealer is nuts.

It's pretty obvious what the dealer is doing...

 

and so long as nobody checks - the loan will go through.

 

If something goes wrong with the loan, an audit is conducted or something other similar thing, it's also going to be rather obvious what happened -

 

I've no idea what, if any, laws this would break, but I wouldn't like to be the one from the dealer, the buyer, the finance company or the salesperson answering the question - because it's a fairly straightforward attempt at fraud (its just a matter of whether there is a specific law that covers it or not)

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Soya

Soya

Supersonic

I think what TS is trying to put across is that the 275K asking price should be divided by 2, into $137.5K... which is 50% of 275k, so it means that buyer can take a "50%" loan, which means a 100% loan. The dealer is not asking 275K for that 2010 Beemer. This is a new trick indeed. Does it even work that way?

 

 

 

dealer inflating price to secure higher loan is not a new trick. you will see a car advertised at say $50k today but tomorrow, it'll suddenly be $65k and the day after, "SOLD".

 

but inflation it by 100%, champion.

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Coolad

Coolad

5th Gear
  • Author

 

dealer inflating price to secure higher loan is not a new trick. you will see a car advertised at say $50k today but tomorrow, it'll suddenly be $65k and the day after, "SOLD".

 

but inflation it by 100%, champion.

 

my point exactly... dealers have been skirting this loan restriction thru this mean... but this particular 1 really over the top...

 

So unless LTA/ MAS are serious in policing it... no point having this new ruling... more like lip service only....

 

In the meantime... car prices/ COE remains high.... business as usual....

 

this is on top of all those ads tat still explicitly states 80%/90% loan still available...

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Darryn

Darryn

Turbocharged

It is called "Over-trade" when they take in your used car at inflated price to offset the inflated downpayment......

 

It has been happening for years!

 

And authorities have been close one eye for years - I don't want to be the one holding the ball when it goes tits up

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Spring

Spring

Moderator

Actually I don't quite understand how you can get away with this ie quoting double the price of a car so that the buyer can get a 100% loan.

 

I thought like property, the financial institution lending the money would/should have a valuation done right? Maybe not so professional like the valuers of a property but surely something along the same line. If there isn't, the bank would risk getting their hands on a car which is much less than the loan should the buyer default. Can't be that silly right??

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Voodooman

Voodooman

Supersonic
(edited)

Actually I don't quite understand how you can get away with this ie quoting double the price of a car so that the buyer can get a 100% loan.

 

I thought like property, the financial institution lending the money would/should have a valuation done right? Maybe not so professional like the valuers of a property but surely something along the same line. If there isn't, the bank would risk getting their hands on a car which is much less than the loan should the buyer default. Can't be that silly right??

Obviously it has worked as I have seen such adv so many times, price jacked up drastically and a few days later, it is sold.

 

Probably taking loans from some dodgy finance company.

Edited by Voodooman
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