MAS imposes restrictions on private car loan!

[nochoice]

Loan up to 60% for omv less than 20k, 50% for omv more than 20k!
And can only loan for 5 years! No need to change car, COE dropping soon!

[indomie]

Can't buy property, can't buy car.....

[nochoice]

Ya....buy stocks!! If not put in the bank and earn "interest"

[august]

I like it.

[Shanhz]

good lah. keep my old car better.

but i do wish garmen can exempt safety features from OMV. i really shake head when i look at substandard cars being brought in. 5 star NCAP when overseas, come here become 2 airbag.

[chestnut]

Can't buy property, can't buy car.....

This will drive COE down. The luxury market will benefit.

[thomastansb]

But luxury taxes go up. So should be about the same price even if COE drop 50%. But it is time for such measure. 100% loan, 10 years. Anyone also can buy. It is long overdue.

This will drive COE down. The luxury market will benefit.

[buttercarp]

But luxury taxes go up. So should be about the same price even if COE drop 50%. But it is time for such measure. 100% loan, 10 years. Anyone also can buy. It is long overdue.

So the message is don't overstretch.
Buy only if you can afford.

I still remember the days when cars were on display at pasar malams and wet market.

[Kelonguni]

Loan up to 60% for omv less than 20k, 50% for omv more than 20k!
And can only loan for 5 years! No need to change car, COE dropping soon!

My favourite decision. The ability to loan much resulted in the price ballooning, and COE mainly goes to LTA I suppose.

With this, force people who really need car to save up and reserve for it.

Siong though, but see how much COE drops to compensate. Those who just bought car heng and sueh also. Borrowed more and longer, but also pay more and longer...

[chestnut]

But luxury taxes go up. So should be about the same price even if COE drop 50%. But it is time for such measure. 100% loan, 10 years. Anyone also can buy. It is long overdue.

For omv above 50k rite. Unless I read wrongly.

[Rysk]

Since last month.. Many Pty agents eat grass..
After today.. Car dealers eat glass..

[chestnut]

Since last month.. Many Pty agents eat grass..
After today.. Car dealers eat glass..

All the used car dealer siao liao... All their stock will drop in price

This 1 no joke.

New car dealers will be confined to the coe quota. This will benefit the lux brand.

[logic]

But luxury taxes go up. So should be about the same price even if COE drop 50%. But it is time for such measure. 100% loan, 10 years. Anyone also can buy. It is long overdue.

Yah...

COE may drop but ARF goes up... net price of car may not drop much for medium to big cars.

[buttercarp]

Since last month.. Many Pty agents eat grass..
After today.. Car dealers eat glass..

Eat glass is fatal .

[nochoice]

[QUOTE=buttercarp]So the message is don't overstretch.
Buy only if you can afford.

Agreed, but this measure a bit over!! If revert back to 70% loan and max 7 years I still can accept...
Only loan 50% + 5 years max... Too much
And worse still no dealer want to take your existing car!

[DPan]

Eat glass is fatal .

Good One

[logic]

Since last month.. Many Pty agents eat grass..
After today.. Car dealers eat glass..

Car dealers will survive lah...

The car buyers have been absorbing the costs all along anyway.

The financiers are going to see a dip in the targets though

[Wild Falcon]

I like! But whatever it is, one can be sure that every month 100% of the COE quota will still be taken up I think this will impact the new car market more than used car.

[kane]

is there a loan tenure restriction for resale car if say it is a 2 year old car?

[nochoice]

is there a loan tenure restriction for resale car if say it is a 2 year old car?

Max 5 years loan irregardless

[kane]

Max 5 years loan irregardless

and if the car is 7 years old with 3 years left to run?

[logic]

and if the car is 7 years old with 3 years left to run?

3 years is less than 5 years... max is 5 years... what is your question again?

[edwinleeap]

and if the car is 7 years old with 3 years left to run?

Case study 1 (Typical jap car):
7 yr old car with 3 yrs left (OMV less than 20k)
Car price: 30k
Downpayment: 12k
Loan 18k
Instalment at 2.88% for 3 yr: $543

Case study 2 (Typical executive/lux car):
7 yr old car with 3 yrs left (OMV more than 20k)
Car price: 65k
Downpayment: 32.5k
Loan: 32.5k
Instalment at 2.88% for 3 yr: $981

[kane]

So if I buy a 6 year old car, is my loan tenure 4 years? And is my ltv 50-60% of the purchase price?

[newbie11]

So if I buy a 6 year old car, is my loan tenure 4 years? And is my ltv 50-60% of the purchase price?

Depend on omv la

[edwinleeap]

Depend on omv la

Case study 3 (New car):
Due to new measures, if COE really drop causing car price to drop drastically to 80k. (BIG IF)

New Car price: 80k
Downpayment: 32k
Loan: 48k
Instalment at 1.88% for max 5yr: $875

See? Even if car price drops a lot, still need cash in hand of 32k, still pay high monthly instalment!!!

[Rysk]

I like! But whatever it is, one can be sure that every month 100% of the COE quota will still be taken up I think this will impact the new car market more than used car.

Think resale cars with less than 5-yrs will benefit.. Buyers no need to fork out too much even loan cap at 50% or 60%

[Shanhz]

cars will still be affordable lah, as long as you can moderate your expectations. altis 7 yr old cost only abt 30k+. you guys all ppty investors, what is freaking 30k????

[Dragonfly]

cars will still be affordable lah, as long as you can moderate your expectations. altis 7 yr old cost only abt 30k+. you guys all ppty investors, what is freaking 30k????

Hahah. Correct!

[Regulators]

no dif to me, I never believe in taking car loans, really waste of money unless one is in the business of renting cars.