CM 1 for motor vehicles

[silver023]

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

[mcmlxxvi]

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 ....

[sherlock]

Everything comes to a standstill.... cannot sell cannot buy

[fiat500]

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..

[silver023]

Think this will be a major dampener on car sales, both new and resale.

Impact on COE will be interesting to see

[sherlock]

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..

Wahaha... yours even more draconian.

[alamak]

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 ...
Another HLP saga ???

[fiat500]

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 ...

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 .

[TMATT]

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

[Shanhz]

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 ...
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.

[Shanhz]

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

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.

[mcmlxxvi]

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]

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.

[DC33_2008]

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]

They should have a separate COE for weekend cars, just like the old days.

[Kelonguni]

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.

[danguard]

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

[Kelonguni]

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?

[chestnut]

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.

[fiat500]

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

[Rysk]

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

[logic]

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 ...
Another HLP saga ???

Better late than never right?

gahmen clamp down not happy, don't clamp down also not happy... what do you want?

[logic]

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...

[silver023]

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

[teddybear]

The cooling measure that is long over-due for commercial and industrial etc properties still didn't come!

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 ....

[teddybear]

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"!

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

[teddybear]

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... ).
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! ).

Quite for truth .... Why is it always the middle income whom bite the bullet? GE 2016 would be interesting to see

[danguard]

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

[minority]

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 ...
Another HLP saga ???

should like thailand is it give $$ for people go buy car? that 1 also piss of many thais.

[minority]

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...