View Full Version : CM 1 for motor vehicles
The Monetary Authority of Singapore (MAS) will place a cap on motor vehicle loans from Tuesday Feb 26.
For a motor vehicle with open market value that does not exceed $20,000, the*maximum loan-to-value is 60 per cent of the purchase price, including*relevant taxes and the price of the Certificate of Entitlement.
For vehicles with an open market value of more than $20,000, the maximum loan will be capped at 50 per cent.
In addition, the tenure of a motor vehicle loan will be capped at 5 years.
In a statement on Monday, the MAS said: "The financing restrictions are necessary to encourage financial prudence among buyers of motor vehicles. In this prolonged environment of very low interest rates, there is greater risk of buyers over-extending themselves on motor vehicles."
The financing restrictions will not apply to loans for the purchase of*commercial vehicles or motorcycles.
- ST
Don't pray pray.
Soon to come... very soon in fact.
CM for reno loan.
CM for edu loan.
CM for 0% bal transfer loans.
CM for ....
Everything comes to a standstill.... cannot sell cannot buy
Everything comes to a standstill.... cannot sell cannot buy
Soon will have ssd for selling yr car within 1st 4yrs
Families buying 2nd car can only loan 30% n 3rd car onwards cannot take loan..:p
Think this will be a major dampener on car sales, both new and resale.
Impact on COE will be interesting to see
Soon will have ssd for selling yr car within 1st 4yrs
Families buying 2nd car can only loan 30% n 3rd car onwards cannot take loan..:p
Wahaha... yours even more draconian. :scared-2:
The Monetary Authority of Singapore (MAS) will place a cap on motor vehicle loans from Tuesday Feb 26.
For a motor vehicle with open market value that does not exceed $20,000, the*maximum loan-to-value is 60 per cent of the purchase price, including*relevant taxes and the price of the Certificate of Entitlement.
For vehicles with an open market value of more than $20,000, the maximum loan will be capped at 50 per cent.
In addition, the tenure of a motor vehicle loan will be capped at 5 years.
In a statement on Monday, the MAS said: "The financing restrictions are necessary to encourage financial prudence among buyers of motor vehicles. In this prolonged environment of very low interest rates, there is greater risk of buyers over-extending themselves on motor vehicles."
The financing restrictions will not apply to loans for the purchase of*commercial vehicles or motorcycles.
- ST
A little too late for them to make such motherhood statement !!! For a long long time they could do this to stamp escalating COE - depressed easy and reckless demand from consumer for a ten years depreciation goods .,, but gahment close both eye as they could only think of their own postive $$$$$$ more COE money, more stamp duties ,,, more ERP collections... blah blah ... NOW $$ control of financing CARs . shorten loan period to 5 years ... Hah haa 3/4 office workers can't buy sky-high property ... now also cannot buy their first beloved car or suka suka change car like change mistress .... jia lak liao ... so all die die to squeeze on train and busses liao ..Many first-time car-owning families affected liao ... guranteed create a lot of frustrations ... and lot of angry voters liao ... :doh: :doh: :doh:
Another HLP saga ???
A little too late !!! For a long long time they could do this to stamp escalating COE - depressed easy and reckless demand from consumer for a ten years depreciation goods .,, but gahment close both eye as they could only think of their own postive $$$$$$ more COE money, more stamp duties ,,, more ERP collections... blah blah ... NOW $$ control of financing CARs . shorten loan period to 5 years ... Hah haa 3/4 office workers can't buy sky-high property ... now also cannot buy their first beloved car or suka suka change car like change mistress .... jia lak liao ... so all die die to squeeze on train and busses liao ..Many families affected liao ... guranteed create a lot of frustrations ... and lot of angry voters liao ... :doh: :doh: :doh:
This cm for cars really too harsh..
They should think of ways to reduce COE prices rather than coming out with this..
Things the gahmen is implementing now are upsetting lots of people .:doh:
It better to do it now then never, everyone want a car cheap cheap without impact of COE etc will made our road like near by country traffic condition - move 1km / hr :doh:
A little too late for them to make such motherhood statement !!! For a long long time they could do this to stamp escalating COE - depressed easy and reckless demand from consumer for a ten years depreciation goods .,, but gahment close both eye as they could only think of their own postive $$$$$$ more COE money, more stamp duties ,,, more ERP collections... blah blah ... NOW $$ control of financing CARs . shorten loan period to 5 years ... Hah haa 3/4 office workers can't buy sky-high property ... now also cannot buy their first beloved car or suka suka change car like change mistress .... jia lak liao ... so all die die to squeeze on train and busses liao ..Many first-time car-owning families affected liao ... guranteed create a lot of frustrations ... and lot of angry voters liao ... :doh: :doh: :doh:
Another HLP saga ???
for the longest time, they were enjoying their easy revenues on COE. maybe punggol east woke them up, but a little too late.
It better to do it now then never, everyone want a car cheap cheap without impact of COE etc will made our road like near by country traffic condition - move 1km / hr :doh:
this CM has no impact on COE supply. in fact most measures are targetted at tempering demand. supply will not change, so our roads will not get more congested.
Need car for ferrying babies and kids and oldies.
Impact:
1. More MRT squeeze and bus cramming
2. Even lower TFR coz can't afford car to bring babies and kids around
3. More old folks homes constructed in the middle of mature estates due to no car to bring them around for makan and medical and follow ups
4. More roads closed on weekends to turn into shopping/eating/hangout venues since less road tax collected for road maintenance
5. Most importantly, 3M huat even more. No explanation needed as obvious.
thomastansb
25-02-13, 20:06
If the public transport is good, then lesser people will buy car. People rush to buy car because our public transport cannot make it. Grade B my ass. He is living in his own world.
This rule does not affect the rich. In fact it becomes cheaper for the rich as the real demand will drop. Middle income get hammered again.
buttercarp
25-02-13, 20:22
They should have a separate COE for weekend cars, just like the old days.
I think it is healthy. 5 year loan means can get cars that are 4-5 years old.
Let's say buy a 50K car, put in 20K and loan 30K, still doable.
New cars tough though, but COE finally may start to dip.
This rule does not affect the rich. In fact it becomes cheaper for the rich as the real demand will drop. Middle income get hammered again.
Quite for truth .... Why is it always the middle income whom bite the bullet? GE 2016 would be interesting to see
Quite for truth .... Why is it always the middle income whom bite the bullet? GE 2016 would be interesting to see
Also increased the OMV tax for those who get luxury car right?
Quite for truth .... Why is it always the middle income whom bite the bullet? GE 2016 would be interesting to see
Because middle class cannot afford to make mistake. They will suffer the most. Imagine they lose their job, how to pay the car. The higher income, technically should have buffer unless they anyhow spend. The middle income form the bulk of the people. Highest % in this rung.
This rule does not affect the rich. In fact it becomes cheaper for the rich as the real demand will drop. Middle income get hammered again.
COE should be base on cars classifications...
For eg: Group A: porsche, ferrari, lambo, mesarati, aston martin etc..
Group B: audi, bmw, merc, volkswagen, lexus etc...
Group C: toyota, nissan, honda, mazda, opel etc...
Group D: proton, daihatsu, kia, hyundai etc....
Let each group bid the coe's among themselves so that the normal bread n butter car will not be outbid by those costly continental models...
The super rich, middle class, ordinary class wil bid among themselves in their respective groups.. This will be a fairer system.. Just my 2cts :D
If the public transport is good, then lesser people will buy car. People rush to buy car because our public transport cannot make it. Grade B my ass. He is living in his own world.
Once I send my car to the workshop for servicing in the morning.. then a fren of mine send my back to office..
After my work I took MRT to the workshop to collect my car.. First train came but couldn't managed to squeeze in.. so waited for the next train.. finally managed to squeeze it.. but was packed like sardine :banghead:
A little too late for them to make such motherhood statement !!! For a long long time they could do this to stamp escalating COE - depressed easy and reckless demand from consumer for a ten years depreciation goods .,, but gahment close both eye as they could only think of their own postive $$$$$$ more COE money, more stamp duties ,,, more ERP collections... blah blah ... NOW $$ control of financing CARs . shorten loan period to 5 years ... Hah haa 3/4 office workers can't buy sky-high property ... now also cannot buy their first beloved car or suka suka change car like change mistress .... jia lak liao ... so all die die to squeeze on train and busses liao ..Many first-time car-owning families affected liao ... guranteed create a lot of frustrations ... and lot of angry voters liao ... :doh: :doh: :doh:
Another HLP saga ???
Better late than never right?
gahmen clamp down not happy, don't clamp down also not happy... what do you want? :doh:
Don't pray pray.
Soon to come... very soon in fact.
CM for reno loan.
CM for edu loan.
CM for 0% bal transfer loans.
CM for ....
But no ballooning in this areas leh...
Because middle class cannot afford to make mistake. They will suffer the most. Imagine they lose their job, how to pay the car. The higher income, technically should have buffer unless they anyhow spend. The middle income form the bulk of the people. Highest % in this rung.
How true... Government seems to be parenting S'poreans too much, maybe because many are blindly pursuing what they consider as their entitlement
The cooling measure that is long over-due for commercial and industrial etc properties still didn't come! :banghead:
Don't pray pray.
Soon to come... very soon in fact.
CM for reno loan.
CM for edu loan.
CM for 0% bal transfer loans.
CM for ....
The measure has nothing to do with cheap COE. To reduce the COE, they just need to implement "Pay whatever price you Bid" and ban car dealers from bidding on owners' behalf rather than "Pay the price of lowest successful bid"! :doh:
It better to do it now then never, everyone want a car cheap cheap without impact of COE etc will made our road like near by country traffic condition - move 1km / hr :doh:
Look at all the policies changes, always middle-income get hit!
Last time implement GST and raise GST, middle-income get hit! (because they didn't benefit from top-tier income tax rate cut...)
Car loans changes, middle-income get hit.
Property loan changes, middle-income get hit.
Property tax changes, middle-income get hit (because they didn't benefit from top-tier income tax rate cut... :p).
Now they say the rich should pay more property tax etc, so the rich should pay more income tax and hence should top-tier income tax rate from 20% (which they reduce from 25% previously) to 30% right? Make them pay more? (Ops, forgot the Ministers will also get hit by increase in top-tier income tax rate if implement what I suggested! :doh:).
Quite for truth .... Why is it always the middle income whom bite the bullet? GE 2016 would be interesting to see
Because middle class cannot afford to make mistake. They will suffer the most. Imagine they lose their job, how to pay the car. The higher income, technically should have buffer unless they anyhow spend. The middle income form the bulk of the people. Highest % in this rung.
I may not understand this but its a bit of a fallacy that the people whom are affected the most should therefore be most heavily regulated by the government. Not sure whether this leads to the assumption that therefore the underlying premise being that middle income means they cannot make dire financial decisions themselves and needs a communist like touch to tell them hey you cannot afford a car unless you pay upfront 40 or 50 percent cash ... Why? A bit of a high handed paternalistic approach which brings forth the necessary question of who asks for it in the first place ?
Anyways what's done has been done and no point crying over spilled milk. Let The next GE be the litmus test
A little too late for them to make such motherhood statement !!! For a long long time they could do this to stamp escalating COE - depressed easy and reckless demand from consumer for a ten years depreciation goods .,, but gahment close both eye as they could only think of their own postive $$$$$$ more COE money, more stamp duties ,,, more ERP collections... blah blah ... NOW $$ control of financing CARs . shorten loan period to 5 years ... Hah haa 3/4 office workers can't buy sky-high property ... now also cannot buy their first beloved car or suka suka change car like change mistress .... jia lak liao ... so all die die to squeeze on train and busses liao ..Many first-time car-owning families affected liao ... guranteed create a lot of frustrations ... and lot of angry voters liao ... :doh: :doh: :doh:
Another HLP saga ???
should like thailand is it give $$ for people go buy car? :doh: :doh: :doh: that 1 also piss of many thais.
I may not understand this but its a bit of a fallacy that the people whom are affected the most should therefore be most heavily regulated by the government. Not sure whether this leads to the assumption that therefore the underlying premise being that middle income means they cannot make dire financial decisions themselves and needs a communist like touch to tell them hey you cannot afford a car unless you pay upfront 40 or 50 percent cash ... Why? A bit of a high handed paternalistic approach which brings forth the necessary question of who asks for it in the first place ?
Anyways what's done has been done and no point crying over spilled milk. Let The next GE be the litmus test
its to take the demand out of the system. at same time less people over stretched. then COE might drop.. and the 50% when COE is say 30K is more doable than 50% at 100K...
Once I send my car to the workshop for servicing in the morning.. then a fren of mine send my back to office..
After my work I took MRT to the workshop to collect my car.. First train came but couldn't managed to squeeze in.. so waited for the next train.. finally managed to squeeze it.. but was packed like sardine :banghead:
peak hour. everywhere u go will be like that.
This rule does not affect the rich. In fact it becomes cheaper for the rich as the real demand will drop. Middle income get hammered again.
Why middle income get hammered? they ask for wage increase for poor right? everyone say many poor people in Singapore mah.
all this measures are meant to take demand out of the system. and I say many times price n cost will never come down. if people all want better life style, better of everything and don't want cheap labour etc.. all this will means cost increase.
So the HLP folks get what they ask for. Singapore for Singaporean. Want special? all have cost.
The measure has nothing to do with cheap COE. To reduce the COE, they just need to implement "Pay whatever price you Bid" and ban car dealers from bidding on owners' behalf rather than "Pay the price of lowest successful bid"! :doh:
Then will that mean more people will rush in to bid? and price also anyhow go up too?
how to deem successful bid?
COE should be base on cars classifications...
For eg: Group A: porsche, ferrari, lambo, mesarati, aston martin etc..
Group B: audi, bmw, merc, volkswagen, lexus etc...
Group C: toyota, nissan, honda, mazda, opel etc...
Group D: proton, daihatsu, kia, hyundai etc....
Let each group bid the coe's among themselves so that the normal bread n butter car will not be outbid by those costly continental models...
The super rich, middle class, ordinary class wil bid among themselves in their respective groups.. This will be a fairer system.. Just my 2cts :D
also then sub rate them by how many people they can carry?
its to take the demand out of the system. at same time less people over stretched. then COE might drop.. and the 50% when COE is say 30K is more doable than 50% at 100K...
but its a blanket take off demand including but not limited to those first time car buyers whom might need a car for their family. All in the name that COE might drop.
If the CM is not so blunt and say families are able to get some form of additional leeway then I would say its a focused approach to also help to alleviate concerns of young families though :beats-me-man:
Then will that mean more people will rush in to bid? and price also anyhow go up too?
how to deem successful bid?
Do you understand what is pay as you bid?
How can the price anyhow go up?...
How to deem successful bid?... the lowest strike price of the quota of course!!!
:doh:
Aiyo... you are so daft
bakasa2002
25-02-13, 21:53
Seems like business will be brisk for Toyota, Honda and Nissan soon. Return to the good old days for Jap made?
Car COE shld also be treated the same way as HDB COV. Only cash, no loan. :)
next month's second COE bidding will be interesting.
I may not understand this but its a bit of a fallacy that the people whom are affected the most should therefore be most heavily regulated by the government. Not sure whether this leads to the assumption that therefore the underlying premise being that middle income means they cannot make dire financial decisions themselves and needs a communist like touch to tell them hey you cannot afford a car unless you pay upfront 40 or 50 percent cash ... Why? A bit of a high handed paternalistic approach which brings forth the necessary question of who asks for it in the first place ?
Anyways what's done has been done and no point crying over spilled milk. Let The next GE be the litmus test
I understand how u feel. Don't know if you were around during the 1997 crisis. Guess who suffered when prices crashed??? No price for guessing.
next month's second COE bidding will be interesting.
I think may take a couple more months before things rationalise. There is still a huge backlog of cars already sold and holding out for COEs...
Once I send my car to the workshop for servicing in the morning.. then a fren of mine send my back to office..
After my work I took MRT to the workshop to collect my car.. First train came but couldn't managed to squeeze in.. so waited for the next train.. finally managed to squeeze it.. but was packed like sardine :banghead:
well last sat i took the MRT (which is like happen once in few months). i noticed alot of angmos even when MRT reach OCR. interesting observatoin. the other thing is, on a sat afternon, the train was packed. it was never like that in the past. heng i own a car.
COE should be base on cars classifications...
For eg: Group A: porsche, ferrari, lambo, mesarati, aston martin etc..
Group B: audi, bmw, merc, volkswagen, lexus etc...
Group C: toyota, nissan, honda, mazda, opel etc...
Group D: proton, daihatsu, kia, hyundai etc....
Let each group bid the coe's among themselves so that the normal bread n butter car will not be outbid by those costly continental models...
The super rich, middle class, ordinary class wil bid among themselves in their respective groups.. This will be a fairer system.. Just my 2cts :D
the change in ARF sort of addresses this already. those owners effectively paying 10-50k more for their cars. so all things equal, they are less likely to pay as much for a COE. don't forget that govt's aim is not to make COE affordable for the "lower income". just level the playing ground abit.
Do you understand what is pay as you bid?
How can the price anyhow go up?...
How to deem successful bid?... the lowest strike price of the quota of course!!!
:doh:
Aiyo... you are so daft
so u go ask for free car loh and free coe? thats a better budget. :doh: :doh:
Seems like business will be brisk for Toyota, Honda and Nissan soon. Return to the good old days for Jap made?
with the devaluation of the yen, yes, i thikn the tide is changing once again.
but its a blanket take off demand including but not limited to those first time car buyers whom might need a car for their family. All in the name that COE might drop.
If the CM is not so blunt and say families are able to get some form of additional leeway then I would say its a focused approach to also help to alleviate concerns of young families though :beats-me-man:
just wait for COE to come down lor. anyway arf no change for 20K OMV cars.
the change in ARF sort of addresses this already. those owners effectively paying 10-50k more for their cars. so all things equal, they are less likely to pay as much for a COE. don't forget that govt's aim is not to make COE affordable for the "lower income". just level the playing ground abit.
agree with the comment.
anyway for 20k OMV, more or less is around 1.6L car level. so it's quite targeted at ensuring that normal man on the street is not taxed excessively. juz checked, camry omv already at 25k.
so u go ask for free car loh and free coe? thats a better budget. :doh: :doh:
Free car? free COE?
What the fish are you talking about? How does that work?
OMG... Your stupidity is astounding...
传车贷顶额与偿还期将收紧
李静仪 (2013-02-22)
早报导读
有关车贷限制的传闻去年底开始传出，最近越传越盛，指政府可能限制买家最多只能贷款车价的80％，偿还期限不可超过八年。
拥车证成价高涨导致车价水涨船高，有越来越多买车者申请更高额贷款，市场盛传政府可能实施“降温”措施，再次管制汽车贷款，限制买家可享有的最高贷款顶限及车贷偿还期限。
受访车商认为，此举一旦实行，将会对新车需求造成影响，短期内对抑制拥车证成价上涨相信有一定效用，但长远还是治标不治本。
有关车贷限制的传闻自去年底开始传出，最近越传越盛，指政府可能限制买家最多只能贷款车价的80％，车贷偿还期限不可超过八年。
这意味着买车者得掏出更多现金支付首期，以一辆价格大众化的日本车为例，如果售价定在12万元（包括拥车证），买主得拿出至少2万4000元现金才能出新车，还得在更短时间内摊还车贷，每月的分期付款额也会推高。
金融管理局是在2003年放宽车贷限制，允许金融机构给予100％贷款，不再限制最多只能借贷车价的70％，同时把贷款年限调高至10年，不再限定在七年。
由于配额削减导致拥车证供不应求，近年来成价节节攀升，中小型汽车（A组）拥车证上月突破九万元，虽然该组成价日前回落到7万8300多元，但新车售价依然处于令人咋舌的历来最高价位。
车贷款额去年激增
新加坡信贷资料中心（Credit Bureau Singapore，简称CBS）提供给本报的最新数据显示，随着拥车证成价和车价飙升，去年的汽车贷款额相对提高，与2009年A组拥车证未突破两万元的时候相比，车贷款额如今激增了四成。
金融机构在2012年每月发出的平均汽车贷款额增加了7.5％，从前年的8万2371元提高至8万8517元，2010年约为7万4000元，2009年则是六万余元。
虽然贷款额增加，但拖欠分期付款30天以上的车主减少了，车贷拖欠率（delinquency rate）由前年的2.76％下降至去年的2.53％。
华侨银行零售抵押贷款部总经理潘丽华受询时透露，过去一年，该银行借贷给新车买主的平均贷款额增加了30至40％。鉴于商业理由，银行无法提供有关贷款偿还期的资料。
据代理日产汽车的陈唱父子公司总经理林建忠估计，每10名买车者中，有至少四人选择100％全额贷款，分10年摊还，其余则贷款80或90％，或完全以现金支付。
在他看来，要是当局确实有意收紧车贷，用意相信是要抑制人们过度消费，特别是考虑到近来有越来越多买车者申请100％贷款。
林建忠说：“现在买一辆日本或韩国车，若分10年摊还车贷，每月得支付约1200元至1300元，有些买主可能认为，既然每月车贷已经这么高了，不如忍痛再多付一两百元，申请较高贷款，就能买到档次较高的豪华车款，车贷限制将让这类买家三思而后行。”
业界：限制车贷降温 也可能有漏洞
他说：“若真限制买家最多只能贷款80％，对这类买家将起着抑制作用，这可能影响豪华车的需求，但大众市场品牌是否会因此受惠，还是一大问号。”
汽车贷款及保险代理M Plus顾问公司负责人罗永坚说：“就像房产市场实施额外印花税一样，要抑制人们对车辆和拥车证的需求，最直接方法是限制车贷，何况政府不可能发放更多拥车证供市场投标，因为公路上的交通已经很拥挤。”
不过业内人士认为，类似限制车贷的降温措施并非万无一失，不严格监控，还是可能出现漏洞，例如车商可在账面上“抬高”车价，实际售价较低，让顾客申请较高贷款。
Seems like business will be brisk for Toyota, Honda and Nissan soon. Return to the good old days for Jap made?
Now Toyota Altis, you pay $10K cash, can buy already even though COE high. Trade in your old car, maybe no need to pay cash.
With this CM, even if COE is at $20K, you need to pay $33K CASH upfront to buy. How many potential Altis type buyers will pay this amount?
Car showrooms along the Alexandra Road stretch stayed open till midnight on Monday, after the Monetary Authority of Singapore announced tough new curbs on car loans that take effect on Tuesday.
Performance Motors, which distributes the BMW brand of cars, sent out text messages to its customers informing them that it was taking orders till midnight.
"Loans will be capped at 50 per cent, minimum five years, with effect from tomorrow," the text message said.
Besides BMW, other European marque showrooms such as Jaguar, Volkswagen and Volvo also extended their opening hours on Monday night.
property_finder
26-02-13, 01:28
Since commercial vehicles are not affected by new ruling, perhaps some drivers may switch to purchasing commercial vehicles. I have came across vans being converted into a "family car" with just an additional sofa in the cargo area. This may drive up COE for commercial vehicle category and increase business cost.
COE is too attractive for the govt to push a dagger through. Motor loan is the next thing govt can do something to control motor vehicle ownership... ;)
Car showrooms along the Alexandra Road stretch stayed open till midnight on Monday, after the Monetary Authority of Singapore announced tough new curbs on car loans that take effect on Tuesday.
Performance Motors, which distributes the BMW brand of cars, sent out text messages to its customers informing them that it was taking orders till midnight.
"Loans will be capped at 50 per cent, minimum five years, with effect from tomorrow," the text message said.
Besides BMW, other European marque showrooms such as Jaguar, Volkswagen and Volvo also extended their opening hours on Monday night.
How was the crowd last night?
buttercarp
26-02-13, 07:58
well last sat i took the MRT (which is like happen once in few months). i noticed alot of angmos even when MRT reach OCR. interesting observatoin. the other thing is, on a sat afternon, the train was packed. it was never like that in the past. heng i own a car.
Tell me about it.
On a Saturday morning, at 10 am the trains are already crowded although not packed.
Wait till the evening comes. It is really a nightmare.
I had to wait for 3 trains to pass by before I could board the EW train home from Paya Lebar on a saturday evening.
Since commercial vehicles are not affected by new ruling, perhaps some drivers may switch to purchasing commercial vehicles. I have came across vans being converted into a "family car" with just an additional sofa in the cargo area. This may drive up COE for commercial vehicle category and increase business cost.
It is not right for family members to travel in commercial vehicles unless they are employees of the company the vehicle belongs to and they are travelling in it for work.
In the event of an accident, the passengers may not be covered under the insurance.
Cash rich ones are not hit by this one. They will just wait for the re-adjustment of COE and car prices. Dealers will need to use more innovative ways to lure their customers now.
Car showrooms along the Alexandra Road stretch stayed open till midnight on Monday, after the Monetary Authority of Singapore announced tough new curbs on car loans that take effect on Tuesday.
Performance Motors, which distributes the BMW brand of cars, sent out text messages to its customers informing them that it was taking orders till midnight.
"Loans will be capped at 50 per cent, minimum five years, with effect from tomorrow," the text message said.
Besides BMW, other European marque showrooms such as Jaguar, Volkswagen and Volvo also extended their opening hours on Monday night.
A new car dealer called me last evening.. informed me try to beat the dateline before 12pm..
When I asked him.. "So how much are you willing to take in my used car, as I've been waiting for your quote since 2-wks ago".. He just couldn't answer me..
We may see more developers giving away cars as 'freebies' ..... like Starville in the past and The Line? :D
Cash rich ones are not hit by this one. They will just wait for the re-adjustment of COE and car prices. Dealers will need to use more innovative ways to lure their customers now.
So much at some other threads abt investment, alternatives, etc. etc.
Now, CASH is indeed King (no cash no talk no purchase) :rolleyes:
well last sat i took the MRT (which is like happen once in few months). i noticed alot of angmos even when MRT reach OCR. interesting observatoin. the other thing is, on a sat afternon, the train was packed. it was never like that in the past. heng i own a car.
Weekday 6.00am train at Amk southbound already packed!
Can a new car dealer circumvent the new rules by "selling" the new car to a middleman that causes the new car to be classified as pre-owned hence becoming a 2nd hand car and therefore can get higher LTV?sounds like a loophole to me...
Can a new car dealer circumvent the new rules by "selling" the new car to a middleman that causes the new car to be classified as pre-owned hence becoming a 2nd hand car and therefore can get higher LTV?sounds like a loophole to me...
but even if brand new car sell to dealer and change in paper work - the fact remains that the max loan duration is 5 years and only 50 percent loan for new cars of OMV 20k or higher no ?
So much at some other threads abt investment, alternatives, etc. etc.
Now, CASH is indeed King (no cash no talk no purchase) :rolleyes:
indeed - with the array of measures, would need some time for the market to react to them before making such purchases
but even if brand new car sell to dealer and change in paper work - the fact remains that the max loan duration is 5 years and only 50 percent loan for new cars of OMV 20k or higher no ?
If you resell again its technically not a new car right?
If you resell again its technically not a new car right?
Yes, no longer a brand new car cos there's 01 transfer of car ownership already.
But actually what are u driving at?
I don't see any loophole at all.. :47:
Our gov is forward thinking. I still trust it. So why this car policy? I guess it's a step to control before a policy change that may increase car supply hence decrease in prices and increase in demand
buttercarp
26-02-13, 18:19
"For re-financing facilities, only the cap on loan tenure applies."
http://www.channelnewsasia.com/stories/singaporelocalnews/view/1256399/1/.html
So if a new car is sold to someone, then another person buys it as a second hand car, so does it mean the second owner is not subjected to the newly imposed LTV?
Or the bank lends the new car owner the loan for 1 day, and then allow refinancing 1 day later (dunno whether allowed or not), then owner not subjected to the new LTV?
My reading is that the LTV and loan tenure applies to both new and resale cars. Can any experts advise?
Free car? free COE?
What the fish are you talking about? How does that work?
OMG... Your stupidity is astounding...
OMG tats what people want GOLD fall from sky!!! OMG! :doh: :doh: :doh:
Why middle income get hammered? they ask for wage increase for poor right? everyone say many poor people in Singapore mah.
all this measures are meant to take demand out of the system. and I say many times price n cost will never come down. if people all want better life style, better of everything and don't want cheap labour etc.. all this will means cost increase.
So the HLP folks get what they ask for. Singapore for Singaporean. Want special? all have cost.middle class want everything cheap cheap, but are they willing to work cheap cheap or not?
Yes, no longer a brand new car cos there's 01 transfer of car ownership already.
But actually what are u driving at?
I don't see any loophole at all.. :47:
I was thinking whether there is a loophole for longer loan tenure or higher LTV.i had impression second hand car can be fully funded by loan, correct me if I am wrong here cos I never bought a pre owned before.
"For re-financing facilities, only the cap on loan tenure applies."
http://www.channelnewsasia.com/stories/singaporelocalnews/view/1256399/1/.html
So if a new car is sold to someone, then another person buys it as a second hand car, so does it mean the second owner is not subjected to the newly imposed LTV?
Or the bank lends the new car owner the loan for 1 day, and then allow refinancing 1 day later (dunno whether allowed or not), then owner not subjected to the new LTV?
http://www.mas.gov.sg/News-and-Publications/Press-Releases/2013/MAS-Imposes-Financing-Restrictions-on-Motor-Vehicle-Loans.aspx
"For re-financing facilities, only the cap on loan tenure applies. The sum of the tenure of the refinancing facility and the number of years since the first motor vehicle loan granted to the borrower for the purchase of that motor vehicle was first disbursed, cannot exceed 5 years. A financial institution may re-finance the full outstanding balance under a motor vehicle loan, subject to its credit assessment of the borrower."
Here is my reading (please stand at the bank side, not the borrower's side):
1) a new car with COE costs S$200K, the max loan the bank can grant to the 1st owner is S$100K for 5 years;
2) after 1 year, the outstanding loan is S$80K. The 1st owner can sell the car to 2nd owner, but the full outstanding loan is just S$80K, the bank can only grant the full outstanding amount (S$80K) to the 2nd owner, but only for 4 years.
The S$100K cash paid by the first owner has nothing to do with the bank. How much the 2nd owner wants to compensate the 1st owner for that S$100K has nothing to do with the bank. For example, the 2nd hand car is only selling at S$150K, the bank can still grant the 2nd owner the "full outstanding loan" S$80K (which is more than 50% of S$150K.)
So no real loophole here. Comments?
Thanks,
Richard
buttercarp
26-02-13, 21:06
The seller can inflate the price of the car and then give discount or cash back in order to secure a higher LTV.
So now when we buy cars, do we have to declare discounts given to us or has this practice of declaring discounts been around all the time?
The seller can inflate the price of the car and then give discount or cash back in order to secure a higher LTV.
So now when we buy cars, do we have to declare discounts given to us or has this practice of declaring discounts been around all the time?
As I explained in the above, 1st owner inflating the car price has nothing to do with the bank.
Using the above example, if the 1st owner wants to sell to the 2nd owner at S$250K, the bank can still only loan S$80K to the 2nd owner.
We need to think standing at the bank side.
Thanks,
Richard
Ok the MAS rules apply to both old and new car purchases .
middle class want everything cheap cheap, but are they willing to work cheap cheap or not?
I more not concern price go up. Go up loh. It will be interesting to know the hlp people reaction when business move out. Out business never grow but contract. Resulting in no pay raise no bonus n even jobloss.
So then things are already more expensive. So how? Blame ah kong again?
I dont see much opportunity in sgp moving forward. Nor growth. It will be lucky if we dont have more people loose job n drop in all service quality. From ur resturant, to car was to infra building etc.
"For re-financing facilities, only the cap on loan tenure applies."
http://www.channelnewsasia.com/stories/singaporelocalnews/view/1256399/1/.html
So if a new car is sold to someone, then another person buys it as a second hand car, so does it mean the second owner is not subjected to the newly imposed LTV?
Or the bank lends the new car owner the loan for 1 day, and then allow refinancing 1 day later (dunno whether allowed or not), then owner not subjected to the new LTV?
refinancing is to refinance the loan on the same car.
different from resale, which is to sell to another party to make it "used". furthermore, one more owner - value of car depreciates. i dun tink it is desired outcome unless the buyer is so so so desperate to own a car
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