Lenders bypassing car loan curbs

[Carnoob]

It good to plug all loopholes else the 2nd hand market will be flooded with buyers and used car price will juz shoot up. Then ppl will KPKB again.

 

I think it is a good move whether the gov earn or not to me is secondary now. At least I can see the hope of a smoother traffic, less cars on the road and more public buses can be introduced thus reducing the waiting time and travelling time for buses.

 

Ppl with cars will take beta care of their cars to let it last longer past the 10yrs. It is in line with the COE quota reductions. Used cars can't be sold then used it for rental.

 

Those small used car dealers can sell their cars to rental companies or simply start renting out. The only companies that will end up closed are those selling used cars on consignment.

 

Less cars on road, less pollution... More Public Transport, less waiting and travelling time. But to satisfy everybody's WANT is difficult, but at least it satisfied everybody's NEED (provided Public Transport reali inproves and COE drops). Well, they have 2 more yrs to prove it really works in controlling COE premium and improving travelling time as a whole, regardless of mode of transport (e.g. by car, by bus, by taxi).

[Humsuplo]

Those intending to chiong loan from non financial institutions, pls hurry up

Door closed, don't comprain

 

 

alamak comprain also cannot meh...

there r 2 types of people: 1 is got lots of moolah so can full cash tats y no need comprain, the second type is poor ones who can only sit around and comprain...

i fall in to the second category in here.

 

but on a serious note: still feel tat the gov is b*llsh*tting us...

end of the day they make more $$ as the arf increase compenstates for the anticipated drop in coe... they must be thinking coe so high still all taken up so even with new measure still got buyers especially those 1000 FTs from banks (this info from another article) who can come buy bently... will buy beemers and mercs.

 

they also knw that no matter how much people kpkb they LLST have to accpet and so end of the day BANKER wins!

 

 

[Sdxx]

I think a lot of you make sense here when you said the car population is controlled by the number of coe made available. So if the demand is there, all these new rules despite placing greater finance constrain on the buyers, will just make the car prices cheaper. How does this serve government and us? Wouldn't this benefit car buyers in the long run since car prices will become cheaper? It also doesn't alter government's objective of controlling car population since the coe quota still as per original target, i.e, allow only 0.5% grow. So this policy is actually good? Only marginal buyers, banks and car dealers lose out?

 

Actually banks can increase interest rates and car dealers will still sell the same amount of cars as long as every coe released for bid has a bidder so they also don't lose out. Ultimately the marginal car buyers are the only one losing out? If the coe price go too low, will we see a case of government cutting back the coe quota? This way, car population can actually grow in the negative and the coe prices can move up, which I think could be the end outcome of these new measures.

[Roadhogger]

if you read last saturday or sun paper...MAS said they are also looking into those credit firms that does not fall into the new ruling...it wont be long that MAS will plug that hole too....

Edited March 5, 2013 by Roadhogger

[Nzy]

I think a lot of you make sense here when you said the car population is controlled by the number of coe made available. So if the demand is there, all these new rules despite placing greater finance constrain on the buyers, will just make the car prices cheaper. How does this serve government and us? Wouldn't this benefit car buyers in the long run since car prices will become cheaper? It also doesn't alter government's objective of controlling car population since the coe quota still as per original target, i.e, allow only 0.5% grow. So this policy is actually good? Only marginal buyers, banks and car dealers lose out?

 

Actually banks can increase interest rates and car dealers will still sell the same amount of cars as long as every coe released for bid has a bidder so they also don't lose out. Ultimately the marginal car buyers are the only one losing out? If the coe price go too low, will we see a case of government cutting back the coe quota? This way, car population can actually grow in the negative and the coe prices can move up, which I think could be the end outcome of these new measures.

 

I guess since many people complain about the price of the COE, they introduced this new rule to help lower the price of COE alittle bit? Plus it can also ensure that less people spend beyond their limits. This benefits those marginal buyers who are unable to afford a car but decide to do so by taking a 100% loan.

[RadX]

if you read last saturday or sun paper...MAS said they are also looking into those credit firms that does not fall into the new ruling...it wont be long that MAS will plug that hole too....

 

 

can u imagine if ppl turn to loan sharks and pawn shops.......i cna tell you more social issues

[Simplecar]

This loophole should not have existed in the first place.

[Wt_know]

50% downpayment and 5 year loan tenure is also to curb financial overstretching

 

Neo Tiam Ting ... WHAT SAY YOU???

do you mean $0 drive away and 100% 10 years loan is good for car owner?

 

SVTA President Neo Tiam Ting said:

[Mllcg]

simple way to lower the COE is to increase the supply.. -.-

[Newdrive]

50% downpayment and 5 year loan tenure is also to curb financial overstretching

 

Neo Tiam Ting ... WHAT SAY YOU???

do you mean $0 drive away and 100% 10 years loan is good for car owner?

 

NTT is referring to used car leh.

[Newdrive]

50% downpayment and 5 year loan tenure is also to curb financial overstretching

 

Neo Tiam Ting ... WHAT SAY YOU???

do you mean $0 drive away and 100% 10 years loan is good for car owner?

 

NTT is referring to used car leh.

[Taipan49]

simple way to lower the COE is to increase the supply.. -.-

 

And welcome to gridlock 24/7.

[Nzy]

simple way to lower the COE is to increase the supply.. -.-

 

Might as well just remove COE if you think this way. Then we'll have traffic jams like those in thailand or india.

 

The purpose of COE is to control the number of cars on the road right? Singapore is so small. Cars should be considered a luxury. Cannot afford just take public transport lo. Its not like there are many places where you can't go without a car in Sg.

[Nzy]

double post.

Edited March 5, 2013 by Nzy

[Nzy]

double post.

Edited March 5, 2013 by Nzy

[Wt_know]

used car no need financial planning?

used car should be $0 downpayment and 100% 10 years loan?

means $1K salary also can buy car liao ... $50,000 x 1.88% x 10 years = $495 per month only

 

NTT is referring to used car leh.

Edited March 5, 2013 by Wt_know

[Timex1441]

I think they (govt) are trying to shift their source of income. It is normal for COE to drop during economy down turn (and they see it coming) hence they shifted revenue source from COE to ARF which they have more control and it's a fix amount (not affected by market forces (bidding)). In addition, they get themselves off hook from blames by car owner that they introduce policies which cause COE to sky rocketted. Any raise in COE will now be blamed on car buyer and bidder themselves.It's a win-win for them. I believe they will next impose a minimum import spec so that they have a minimum tax from each unit. Cars will now be expensive because of tax and not COE. I believe COE will drop but not the effective car price.

 

They are extremely smart in setting policy to make them look good and squeezing big bucks from car owner.

can't agree with wat u said, highlighted in red color.

The govt still has a strong influence on the COE price via the number of COE's n the positive / negative car population growth....anyway, the recent measures will check the rise of COE prices and bring them down somewhat....but i only believe in a "crash" when i actually see it happen....(in the long term, with population growing, hard to believe COE prices can stay low)

[Nzy]

simple way to lower the COE is to increase the supply.. -.-

 

Wasnt the purpose of COE to control the car population? Might as well just remove COE if you think this way. Then we'll have traffic jams like those in thailand or india.

 

Singapore is so small. Cars should be considered a luxury. Cannot afford just take public transport lo. Its not like there are many places where you can't go without a car in Sg.