Tiger1 6th Gear January 5, 2013 Share January 5, 2013 Just curious, with car prices at crazy level now, how the hell bank assess car loan applications? Lets say someone earning $3000 a month brought a new Altis for $140,000 and applied for a $130,000 loan. The monthly instalment is abt $1,300 a month. That is about 43% of his monthly pay! thought bank got a set of criteria like cannot exceed 30% of monthly pay??? If we deduct CPF, his salary will drop to $2,400 and that car instalment will be 54%. Wow. Add in petrol, ERP, misc and not even talking abt annual rd tax n insurance, easily smelly smelly $1,800 a month. Left $600 eat grass every month is it??? Really scary world out there. Either we are somewhat crazy or something is super wrong here. ↡ Advertisement Link to post Share on other sites More sharing options...
Nullifi3d 4th Gear January 5, 2013 Share January 5, 2013 Just curious, with car prices at crazy level now, how the hell bank assess car loan applications? Lets say someone earning $3000 a month brought a new Altis for $140,000 and applied for a $130,000 loan. The monthly instalment is abt $1,300 a month. That is about 43% of his monthly pay! thought bank got a set of criteria like cannot exceed 30% of monthly pay??? If we deduct CPF, his salary will drop to $2,400 and that car instalment will be 54%. Wow. Add in petrol, ERP, misc and not even talking abt annual rd tax n insurance, easily smelly smelly $1,800 a month. Left $600 eat grass every month is it??? Really scary world out there. Either we are somewhat crazy or something is super wrong here. You mean there are people who'll buy a 140K Altis??? Link to post Share on other sites More sharing options...
Tiger1 6th Gear January 5, 2013 Author Share January 5, 2013 Or any cars at 140k. Happy? Link to post Share on other sites More sharing options...
Mllcg 3rd Gear January 5, 2013 Share January 5, 2013 Just curious, with car prices at crazy level now, how the hell bank assess car loan applications? Lets say someone earning $3000 a month brought a new Altis for $140,000 and applied for a $130,000 loan. The monthly instalment is abt $1,300 a month. That is about 43% of his monthly pay! thought bank got a set of criteria like cannot exceed 30% of monthly pay??? If we deduct CPF, his salary will drop to $2,400 and that car instalment will be 54%. Wow. Add in petrol, ERP, misc and not even talking abt annual rd tax n insurance, easily smelly smelly $1,800 a month. Left $600 eat grass every month is it??? Really scary world out there. Either we are somewhat crazy or something is super wrong here. as long as your monthly repayment is lower than salary, bank will lend u any amount. u earn 10k/mth but want to buy a 900k car also can. every mth pay 9k. Link to post Share on other sites More sharing options...
Yewheng Twincharged January 5, 2013 Share January 5, 2013 as long as your monthly repayment is lower than salary, bank will lend u any amount. u earn 10k/mth but want to buy a 900k car also can. every mth pay 9k. Got like this 1 meh? Thought will have some form of risk assessment. If not bank taking super big risk and very dangerous if those guys default on payment due to no $. Bank is not charity Leh. Link to post Share on other sites More sharing options...
Vextan 1st Gear January 5, 2013 Share January 5, 2013 Just curious, with car prices at crazy level now, how the hell bank assess car loan applications? Lets say someone earning $3000 a month brought a new Altis for $140,000 and applied for a $130,000 loan. The monthly instalment is abt $1,300 a month. That is about 43% of his monthly pay! thought bank got a set of criteria like cannot exceed 30% of monthly pay??? If we deduct CPF, his salary will drop to $2,400 and that car instalment will be 54%. Wow. Add in petrol, ERP, misc and not even talking abt annual rd tax n insurance, easily smelly smelly $1,800 a month. Left $600 eat grass every month is it??? Really scary world out there. Either we are somewhat crazy or something is super wrong here. $3k salary bank will loan $130k ? tarn ku ku. Link to post Share on other sites More sharing options...
Zogel Clutched January 5, 2013 Share January 5, 2013 I earn 4.2k gross. The bank approved my 150k loan. Link to post Share on other sites More sharing options...
Adrianli Hypersonic January 5, 2013 Share January 5, 2013 There is a formula to calculate. I forgot already. The car dealers will know. I think base on ur annual income. Link to post Share on other sites More sharing options...
Evillusion Supersonic January 6, 2013 Share January 6, 2013 even if his salary is 2k/m and he buys a evo n the bank approved his loan why should we care. As long as he is happy n the bank is happy its their problem. But he may have others (ah pa,ah ma,ahgong,keke,titi) helping him with the dp and the monthly Link to post Share on other sites More sharing options...
Mllcg 3rd Gear January 6, 2013 Share January 6, 2013 Got like this 1 meh? Thought will have some form of risk assessment. If not bank taking super big risk and very dangerous if those guys default on payment due to no $. Bank is not charity Leh. credit rating lor... if that person every mth got 500 CC bills before the loan, and every mth clear on time, rating sure high de. Link to post Share on other sites More sharing options...
Watwheels Supersonic January 6, 2013 Share January 6, 2013 (edited) You sound naive and talk as if the bank cares. As long as ppl can make the installment in time the bank dun care about the rest. Ppl suppose to work out their own finances. Once they approve your loan the rest is up to you or your car get repossessed. The bank can't be your parent and look after you. Welcome to reality. Why do you think there are so many moneylenders and ah loongs around? Do you think they care too? They are only interested in your money. They dun think you are that interesting. Get real. Edited January 6, 2013 by Watwheels Link to post Share on other sites More sharing options...
Wt_know Supersonic January 6, 2013 Share January 6, 2013 (edited) bank will loan you ... no pay will chop chop re-possess your car after your car is re-possesed you still owe the bank money hor Edited January 6, 2013 by Wt_know Link to post Share on other sites More sharing options...
Galantspeedz Turbocharged January 6, 2013 Share January 6, 2013 I earn 4.2k gross. The bank approved my 150k loan. car loan? what is the dp and guarantor needed? should need a guarantor at least Link to post Share on other sites More sharing options...
Turret Clutched January 6, 2013 Share January 6, 2013 We are always waiting something to happen before MAS will step in to regulate the issue. From time to time, MAS will issue "guidelines" to the financial institutions. Perhaps let's wait for some tragedies to happen like --- symptoms like bankruptcy(involving huge car loan) related suicide to act as a wake-up call for our society.... Link to post Share on other sites More sharing options...
Turret Clutched January 6, 2013 Share January 6, 2013 bank will loan you ... no pay will chop chop re-possess your car after your car is re-possesed you still owe the bank money hor currently, the bad loan rates are low, that is why the banks can now afford to lend "freely". When economy turns sour, then bank will tighten its loan policy and re-possession rates go up. Then the demand for COE will fall couple with COE prices. The Government will then relax its COE policy by increasing the COE quota... it is a vicious cycle. Currently, we are at the peak or almost over the peak, we are heading into the trough in the next 2 years.... Link to post Share on other sites More sharing options...
Forte3737 5th Gear January 6, 2013 Share January 6, 2013 bank will loan you ... no pay will chop chop re-possess your car after your car is re-possesed you still owe the bank money hor If worse, bank will go the legal route and that person will be made a bankrupt Link to post Share on other sites More sharing options...
Shanhz 3rd Gear January 6, 2013 Share January 6, 2013 (edited) check out the supply of COE and the prices of COE trend between 2004 to 2005. then u will know when COE start to fall. barring any policy changes. Edited January 6, 2013 by Shanhz Link to post Share on other sites More sharing options...
Forte3737 5th Gear January 6, 2013 Share January 6, 2013 check out the supply of COE and the prices of COE trend between 2004 to 2005. then u will know when COE start to fall. barring any policy changes. Since you into trends, Can share with us your views? ↡ Advertisement Link to post Share on other sites More sharing options...
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