MAS and Car loan curb issues

[Baal]

Mz3 2.0, sylphy 1.8., chevy 1.4tc, vw 1.4? All within 20k omv?

Also means those who bought 06-09 likely chiong in early b4 the famine.

Take loan for pqp 10yrs also 7 yrs loan. Coe ftw!!!

[monsieurlee]

I think a lot of people can trade up to better cars. Those Chiong Nissan note and Mitsubishi attrage can now Chiong for VW, conti cars and altis Liao. Steady to all and cheaper cars will lose sales to more premium car Le

[RH1667]

Time to apply to work as SE in car showroom. Any Lobang ?

[Showster]

Once property prices drop enough, ABSD will probably be cut. Follow MAS pattern, cannot fully remove else the market will go crazy again. Must slowly ease off. Looking at property prices it might be likely towards end of the year

The relaxation here is on financing of motor loans. When COE goes up, the "taxes" that motorists pay actually increases.

 

The comparable equivalent to property here is actually LTV and not ABSD. ABSD is a tax. LTV affects financing. I believe they may also relax LTV accordingly first before ever touching ABSD.

[Oxygen89]

Next round COE gonna be super interesting!

 

Para 6.    "The Ministry of Trade and Industry will apply the revised financing restrictions to non-MAS regulated entities which extend motor vehicle financing on a hire-purchase basis. The Ministry of Law will also require licensed moneylenders to comply with the revised financing restrictions."

 

While this announcement is gonna draw some crowds who have enough cash for the 30/40% downpayment, it will also squeeze out people who previously wanted to get a car with 20% downpayment or less.

Those private car-hire companies will be more prudent in their acquisitions of cars too!

[Karoon]

what to do....

 

gamen really really need to max coe revenue....

 

ageing population, people want more safety net etc etc. those $8 heart surgeries not performed by vounteers u noe

[Fcw75]

Doesn't affect MCF peeps la.

 

Here all FULL CASH ONE.

[Thaiyotakamli]

Time to apply to work as SE in car showroom. Any Lobang ?

Shake legs customer auto come

 

Refuse for test drive they will still buy haha

[Blueray]

This weekend Leng Kee and Ubi sure crowded ... 

[Showster]

So when a responsible Govt open door wide wide for you to buy anything you are going to need sooner or later, if you can afford it, just go. Don't wait until too many people squeeze in then ask why don't open longer. If still cannot afford then work harder or look for alternatives. Just turn away.

[Thaiyotakamli]

Doesn't affect MCF peeps la.

 

Here all FULL CASH ONE.

Not all full cash

 

 

Now they can buy 2-3 new cars for the family

[Bismarck]

Car lite still in progress ah, car lite for all non elites! Elite huat ah! Amdk!

 

What is it got to do with AMDK? 

Win win win ...

Govt win, cos still able to get more $ from high COE

Banks win, cos can loan and get interest ..

Those waiting on the sidelines with not that much cash in hand, wins ...

 

Those who doesnt need a car, win too coz its non of their business 

[Matrix0405]

Doesn't affect MCF peeps la.

 

Here all FULL CASH ONE.

 

 

Agree. the difference is less $10K. More people will be moving away from 2nd hand to support new cars. Banks fight  back the ah long lenders. But what really impressed was the reason given for this sudden easing. Very economic & logical reason. Not some BS like people showed maturity during GE and wanted to help ppl meet their aspirations. The PR dept have to craft the msg carefully, given the poor economic outlook, they must not appear irresponsible to offer ppl to loan more.    

[RH1667]

Shake legs customer auto come

 

Refuse for test drive they will still buy haha

Yes, only entertain those with ready Cheque or cash ! Ha ha

[BreezyWind]

A toast to COE! Chiong AR!

[Char]

Will LTA comes to the rescue ?

[No_worries]

The last time MAS unwind the loan curbs was in 2003 during the SARS crisis. Older bros here will remember the 30 percent downpayment and 7 year loan period from 1995 to 2003. During the depths of the SARS crisis when demand was weak, MAS unwind the loan curbs to allow 100 percent financing.

 

So this time round, why did MAS allow unwinding of the curbs from 5 years loan to 7 years? It does mean that the economic outlook is darkening and just as we are happy that downpayment for either a new or preowned car can be lesser, it also means perhaps retrenchments and job losses could be on the way.

 

Not too happy about the last point though. =((

[Piyopico]

So many people bought cars to expire in 2016 till 2018 thinking they can't go wrong. Paid for old cars with higher depreciation than new cars some more.........

 

Oops.

 

 

You think things are bad now? Wait till they ease again to 80% loan quantum in 2018........

 

Govt not stupid.