Car down payment Rules

[WillyWonka]

They probably can't do that cuz it isn't fair to those as the rules only changed after they buy. Just like when they change to 50% DP, all those who loaned 100% already still can continue to slowly pay off their loan.

 

Government implement rules where got care so much one

 

Quote you one example. Just like the $3,000 in CDA for eligible babies from 24 March 2016 onwards. Those parents who have kids before that can only heart pain

[Nzy]

Government implement rules where got care so much one

 

Quote you one example. Just like the $3,000 in CDA for eligible babies from 24 March 2016 onwards. Those parents who have kids before that can only heart pain

 

Ya. That's my point. The people who settled everything before the rules change won't be affected. Just like GST increase they never ask you to pay the extra GST for the other items that you have bought in the past.

[Bezz]

Government implement rules where got care so much one

 

Quote you one example. Just like the $3,000 in CDA for eligible babies from 24 March 2016 onwards. Those parents who have kids before that can only heart pain

 

Yeah this one really bang balls if their baby born a few hours before midnight on 23 March... 

 

But I guess there has to be a start date/time, any date/time will have people   

[Little_prince]

 

 

 

 

 

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90% car loans are back, but what’s the catch?

SINGAPORE — These days the law requires a 30 to 40 per cent downpayment on a new car, but the chance to buy one for just 10 per cent down is becoming increasingly common.

Smaller car dealers like Motorway SsangYong have offered such financing on selected models for months, but Cycle & Carriage is one major player to start selling cars with 90 per cent loans.

The company’s Private-Hire Purchase scheme has been rolled out for its Citroën, Kia and Mitsubishi brands, and compared to a regular loan it makes a new car much more accessible.

Take a Kia K3 Forte EX for an example. It retails for $95,999 with COE, so under a normal loan the downpayment is $28,800, with a monthly repayment of $945.

With PHP, the downpayment is $9,600, and the balance comes to $1,007 a month for 10 years.

How does it work? In a nutshell, the PHP structure involves starting a company that is set up to own private-hire cars. A bank lends that company the money to buy a car. The company lets you drive it.

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C&C and Motorway say they help customers with all the necessary paperwork.

But this isn’t a scheme designed to encourage the cash-poor to manoeuvre around the 30 to 40 per cent downpayment hurdle.

Instead, PHP is actually aimed at people with flexible working hours, or those who are financially savvy.

That’s because the scheme allows drivers to pick up passengers from Uber or Grab in their spare time, and earn income to offset the cost of financing the car. The Kia K3 Forte costs $34 a day under PHP, which half of what it costs to rent one from Lion City Rentals, an Uber-linked company.

“We see a growing interest in people who want to be an Uber or Grab driver. Some may have their own day job with flexible working hours and they do not mind earning extra cash in their spare time to defray the cost of owning a car,” says a spokesperson from C&C.

We spoke to one PHP customer who works as a property agent (he declined to share his name). He bought a Kia Carens 1.7CRDi in July under PHP, and calls the decision a “no-brainer”.

“First, l don’t like to tie up my money for a down payment too much. I can put it to better use,” he told CarBuyer. “I also want to have options in case I want to cover (the cost of the car). If you choose to fund it back by picking up some passengers, you can do it.”

After dropping his children off at school, and between property viewings, the agent picks up passengers. His Kia costs around $45 a day to finance, so after three journeys the car will have mostly paid for itself.

Freelance workers, salesmen, housewives or retirees are other potential groups who could take advantage of PHP.

But One downside of PHP is steeper interest. Based on deals available to customers, the annual interest payable works out to 3.98 per cent at both C&C and Motorway Ssangyong (neither company provided interest rates directly, declaring them “trade secrets”). Financing a Kia K3 Forte usually involves an interest rate of around 2.58 per cent.

Insurance costs are higher too, because insurers assumed hire cars spend more time on the roads, making them more risky to underwrite.

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One property agent drives his Kia Carens between property viewings to offset its ownership and running costs

But all costs of running the car can be expensed. Fuel, insurance, loan payments, servicing and repairs are all legitimate expenses. On the flipside, if the company that owns the car makes a profit, it pays taxes on it.

Another advantage worth considering: PHP has no impact on housing loans.

When banks calculate how much you can borrow to buy a property, they look at something called the Total Debt Servicing Ratio, which requires them to take into account how much you’re paying for a car loan.

But strictly speaking, the PHP structure means it’s your company that owes money for the car, so it doesn’t impact your own TDSR.

That said, it’s worth restating that PHP was never designed to let customers or the cash-poor gorge themselves on debt. Buying a car is a major financial decision, and such a scheme works best if you’re in a position to let your car earn income for you.

“Please do not use our scheme as a way to circumvent the vehicle financing regulations,” says the spokesperson from C&C. “At the end of the day, we want our customers to enjoy the use of the car and not have financial woes because of the car.”

 

 

 

 

what do you guys think?

 

my gut feel is that this might actually work.

 

doesnt impact TDSR and all running costs can expense off....

 

quite ingenius!

[RadX]

what do you guys think?

 

my gut feel is that this might actually work.

 

doesnt impact TDSR and all running costs can expense off....

 

quite ingenius!

 

 

trying luck again is it? 

 

Further more this was posted earlier  under the uber, no need to start all over again on this

 

 

 

really make mods busy with these nonsense to keep this place clean and uncluttered

 

 

merged here

[Unfair]

trying luck again is it? 

 

Further more this was posted earlier  under the uber, no need to start all over again on this

 

 

 

really make mods busy with these nonsense to keep this place clean and uncluttered

 

 

merged here

 

That would be true if we assumed everyone read every thread like the mods.

 

Unless he needs to search Uber + Grab + Car Loan + Hire Purchase threads before posting ? 

[RadX]

That would be true if we assumed everyone read every thread like the mods.

 

Unless he needs to search Uber + Grab + Car Loan + Hire Purchase threads before posting ?

If you do not know the incident and precedence of thiis thread suggest you kip your comments to yourself