MPs raise concerns over changes to car ownership policies

[Zxcvb]

SINGAPORE: Several MPs have raised their concerns in Parliament over the latest changes to car ownership policies.

 

Under the Monetary Authority of Singapore (MAS) car loan curbs, buyers have a maximum of five years to their service car loans.

 

They also have to foot a downpayment of 40 per cent or more for a new vehicle.

 

The changes, they say, not only have an effect on second-hand car dealers but also large families.

 

Mr Pritam Singh, MP for Aljunied GRC, said: "It would be imperative for the government to look at possible tweaks to the system if indeed larger families and families that include disabled singaporeans or elderly parents are genuinely affected, as the effects of the new policy kicks in over next few months.

 

"One specific way could be to raise the LTV ratio for cars back to 70 per cent as it was previously, but only for families with two or more children so as to buttress and incentivise the government's efforts to raise TFR (Total Fertility Rate).

 

Dr Lee Bee Wah, MP for Nee Soon GRC, said: "With regards to the restriction on private car loans, there has been plenty of unhappiness from the grounds, from existing car owners to second-hand car dealers.

 

"Recently, I received a very long email from a resident of mine. He told me that he has been a second-hand car dealer for 17 years. He started off as a salesman after ROD, and he worked his way up and he is currently the CEO. He has 235 cars in hand and 50 staff, and he is crying out for help. He told me he is going to sell his house but he worries he cannot save his business."

 

"As I read his email, my heart beats with his. Again, the change is so drastic and immediate that some second-hand car dealers like my resident will have to fold up their businesses. Is this cut so critical and so market sensitive that the Government cannot give any advance notice?"

 

- CNA

[Wt_know]

sibei lame

how come no say email from car owner (current and new) crying for help when coe is $90K?

 

"Recently, I received a very long email from a resident of mine. He told me that he has been a second-hand car dealer for 17 years. He started off as a salesman after ROD, and he worked his way up and he is currently the CEO. He has 235 cars in hand and 50 staff, and he is crying out for help. He told me he is going to sell his house but he worries he cannot save his business."

Edited March 6, 2013 by Wt_know

[Ev0lutionz]

No policy is perfect i guess. One policy either makes one happy and makes the other unhappy.

[Albeniz]

"Recently, I received a very long email from a resident of mine. He told me that he has been a second-hand car dealer for 17 years. He started off as a salesman after ROD, and he worked his way up and he is currently the CEO. He has 235 cars in hand and 50 staff, and he is crying out for help. He told me he is going to sell his house but he worries he cannot save his business."

 

- CNA

 

He has been earning big bucks for the past 17 years.

[Yeshe]

He has been earning big bucks for the past 17 years.

 

i wouldnt say so, there are good times and bad times, but recent times will be the worst nightmare for preown car dealers

[Albeniz]

Economy is probably turning for the worst.

 

That is why have to suddenly implement the 50%-5year loan restriction.

Possibly worried that there will be too many bad debts when the fateful day finally arrives.

[Leepee]

I thought disabled drivers can apply for no COE and no ARF car purchase?

Certain of disableness and yet don't need to modify car.

It's in the LTA website.http://www.onemotoring.com.sg/publish/onemotoring/en/lta_information_guidelines/forms_download0.MainPar.0050.File.tmp/DPS_form.pdf

 

I am sure creative minded car buyers can define 'disabled' innovatively and capitalize on this scheme.

Edited March 6, 2013 by Leepee

[Kiadaw]

I think change of policy is ok, but the problem is the measures are too drastic & sudden.

 

The car market SHOULD NOT be a like a stock market, where the inflation of prices change so fast & drastic, that you cannot make any meaning predictions, for both consumers & sellers.

 

They could have make the measures in smaller steps, to the eventual target of 50% DP & 5 year loans. Say start with 80% & 8 yeras as max, & reduce graudually in 3 years to the eventual target. At least it give time for people to adapt, an plan for their business.

 

Any industry that see such significant changes of policys/meaures will be greatly affected, & people job at risk.

[Lydiachristopher]

ALBENIZ, if you are that car dealer? will you accept this?

[Ev0lutionz]

ALBENIZ, if you are that car dealer? will you accept this?

 

 

If i'm a car dealer, i probably wont. Take an example. You are rich, living in an expensive bungalow away from the city area. You are able to afford any car you want. This measure will probably not affect you and you would say its good for the future of Singapore. Less cars on the road. But if you're on the other end, needing a car for your work, this move will probably affect you when you get a change of car and you would be unhappy about it.

[Spurman]

The car business is one trade which would be the most toughest industry to work in.

Sibei volatile. Coe up down. New rules implemented in a flash.

 

 

[Wt_know]

how come he never wrote to MP for the past 17 years to complain it's tough for him to make so much money ... sibei siong ar

 

He has been earning big bucks for the past 17 years.

 

[Wt_know]

coe has been skyrocketing from $40k to $70K to $90k almost touching $100k ... no need scientist to guess it cannot continue to go up to $100k $200k

so many people complain in newspaper, call in tv progamme, etc etc

as a ceo of a used car company and captain of the industry he should know the risk of the business and sense something (cooling measure) is coming

business good ... he whacked ... stock up until 253 cars (he made heavy bet) ... now tide change ... cry papa cry mama

if no cooling measure, he whacked big and make millions from 253 cars ... aberthen ... will he complain?

 

I think change of policy is ok, but the problem is the measures are too drastic & sudden.

 

The car market SHOULD NOT be a like a stock market, where the inflation of prices change so fast & drastic, that you cannot make any meaning predictions, for both consumers & sellers.

 

They could have make the measures in smaller steps, to the eventual target of 50% DP & 5 year loans. Say start with 80% & 8 yeras as max, & reduce graudually in 3 years to the eventual target. At least it give time for people to adapt, an plan for their business.

 

Any industry that see such significant changes of policys/meaures will be greatly affected, & people job at risk.

Edited March 6, 2013 by Wt_know

[Watwheels]

Used car dealers hog up so many cars. No wonder COE prices like reaching 100k. If they were to scrap those 6 years and above cars the COEs would have return into the system to generate more numbers in the quota. These crooks now cry for help. Too late. Sgp policy once effective there's no u-turn.

 

One used car company of 50 over staff hog up 250 cars is like on average 1 person having 5 cars at a point of time. Imagine so many used car dealers, the number of COEs that could return back to the system is not small.

 

 

[Dinosaka]

coe has been skyrocketing from $40k to $70K to $90k almost touching $100k ... no need scientist to guess it cannot continue to go up to $100k $200k

so many people complain in newspaper, call in tv progamme, etc etc

as a ceo of a used car company and captain of the industry he should know the risk of the business and sense something (cooling measure) is coming

business good ... he whacked ... stock up until 253 cars (he made heavy bet) ... now tide change ... cry papa cry mama

if no cooling measure, he whacked big and make millions from 253 cars ... aberthen ... will he complain?

 

All i say is all Used car dealers can go jump off the bridge...

 

 

[Rubbishman]

coe has been skyrocketing from $40k to $70K to $90k almost touching $100k ... no need scientist to guess it cannot continue to go up to $100k $200k

so many people complain in newspaper, call in tv progamme, etc etc

as a ceo of a used car company and captain of the industry he should know the risk of the business and sense something (cooling measure) is coming

business good ... he whacked ... stock up until 253 cars (he made heavy bet) ... now tide change ... cry papa cry mama

if no cooling measure, he whacked big and make millions from 253 cars ... aberthen ... will he complain?

 

 

Being in the business for so long, I am certain he has his fair share of good times too. The tides turning for him now but its only through tough times that strong men emerge.

I am sure for a veteran like him, he can ride out of the storm. Just like Andy Lau, 非常时期，用非常方法

 

 

[Wt_know]

high coe, they make money

low coe, they complain people buy new car ... they hard to make money ... i recall many used car dealer come out cry papa cry mama in 2009 when coe is low

high loan, they make money

no loan, they complain hard to make money

 

as long as they hard to make money ... they complain

they don't know how to do business?

if a char kway teow stall not selling well ... he complain the weather too hot ... the whole hawker centre should go aircon?

please look into the mirror how to do business in good times and bad times

 

Used car dealers hog up so many cars. No wonder COE prices like reaching 100k. If they were to scrap those 6 years and above cars the COEs would have return into the system to generate more numbers in the quota. These crooks now cry for help. Too late. Sgp policy once effective there's no u-turn.

 

One used car company of 50 over staff hog up 250 cars is like on average 1 person having 5 cars at a point of time. Imagine so many used car dealers, the number of COEs that could return back to the system is not small.

Edited March 6, 2013 by Wt_know

[Ungtiong]

a LOT of people are secretly happy about the new law...COE price will drop and will benefit a lot of drivers. The gov cannot please everybody...each have their own agenda and this new law will benefit most Singaporeans...those traditional Singaporeans that save and put down payment for a car. However i dont agree on the 50% down payment, as traditionally MOST of us will not fork out 50%..at most maybe 30%. I am VERY sure the gov will 'listen' to the people and relaxed the 50% downpayment AS SOON AS THE COE DROPS TO A LOW ENOUGH LEVEL TO MAKE PEOPLE HAPPY. Cannot give all the candy now...must slowly release until 2016, so ppl will remember.

 

30% i think is enough to deter the young buyers (buy car as soon as landed 1st job) and those that cannot afford to but was sucked into the evils of bank loans.