Cooling measures drive up car loan interest rates

[Earthboy]

borrower's credit worthiness should also be assessed. the loan rate here is kind of 1 size fit all type.

[Enye]

Shorter term means lower risk to lender. Why interest rate went up instead of down?

Higher down payment also means lower risk for lender when borrower defaults.

This hike doesn't make any sense unless the financial institutes have reduced the money allocated for car financing drastically.

 

it is really counter intuitive

 

but in Singapore, these car buyers who need loans have no choice

 

because they have to proceed after getting their COE

 

they cannot back out of buying or suddenly cough up additional cash because interest rate increased

 

therefore banks are using this to milk these trapped people for all that they are worth

 

Edited May 24, 2013 by Enye

[Gendut]

therefore banks are using this to milk these trapped people for all that they are worth

 

 

 

Looks like our anti competition laws here are just for show? collusion?

 

I wonder how many other of our laws are for show? TAFEP?

[Zogel]

it is really counter intuitive

 

but in Singapore, these car buyers who need loans have no choice

 

because they have to proceed after getting their COE

 

they cannot back out of buying or suddenly cough up additional cash because interest rate increased

 

therefore banks are using this to milk these trapped people for all that they are worth

 

 

usually, the loan gets approved before the AD secures the COE.

 

[Chucky2007]

Cooling measures have influenced Coe to drop 30k hence car price drop 30k.. And also loan interest to go up from 1.88% to 2.68%... However the increase of that 0.88% is no way near the savings of that 30k reduction in car price.

[Wt_know]

sure or not ... didn't reflect in car price leh

 

Cooling measures have influenced Coe to drop 30k hence car price drop 30k.. And also loan interest to go up from 1.88% to 2.68%... However the increase of that 0.88% is no way near the savings of that 30k reduction in car price.

Edited May 24, 2013 by Wt_know

[Throttle2]

Cannot borrow much and loan rate up.

Sibei song ah!

 

Next measure , just go full cash. Why waste time?

Yeah!

 

 

 

[Fuelsaver]

Cooling measures have influenced Coe to drop 30k hence car price drop 30k.. And also loan interest to go up from 1.88% to 2.68%... However the increase of that 0.88% is no way near the savings of that 30k reduction in car price.

Rubbish, new crv still holding at 170k. Km carroting whoever ready to get chopped.

[Fuelsaver]

Cannot borrow much and loan rate up.

Sibei song ah!

 

Next measure , just go full cash. Why waste time?

Yeah!

On! If car price drops by a good 20-30% that is.

[Spurman]

Yeah. Coe drop big big....... Drop to 30k....

 

Hopefully ppl think twice to put 50k downpayment for a brand new altis

[Meanmachine]

Just note DBS imposes 3.5% admin on outstanding loan for full settle. The low interest is to encourage monthly payment. Whereas hong leong doesn't impose rule 78 on full settle after 2 years.

 

 

I knew it, when DBS impose lowest interest rate, it does not necessary means so, there is always " hidden agenda " attached, car buyer are like ' Kang chiong spider who go chope a meal, sure kenna chop mati.

 

[Meanmachine]

Cooling measures have influenced Coe to drop 30k hence car price drop 30k.. And also loan interest to go up from 1.88% to 2.68%... However the increase of that 0.88% is no way near the savings of that 30k reduction in car price.

 

 

I can tell you Gahmen are tackling car growth by sucking blood fm ERP entry, they are not going to win, after housing issues, they are coming to terms with some mistake/s made, No but, no sorry and no apologies.

 

They will tell you,: I think we should do this way better, why not try its out.... blah, blah . . . blah, Never ending story.

 

Do away with COE, it has nothng to stop ppl frm owning car, the amount of coe collected month-in month out goes to their coffer, can they explain it?

 

Part 2: Can tell us in future, will monitor car travelling distance by satellite, DO they really know how much it gonna to cost us ( An arm and a leg )

sure, every car on the rd, will be squeezed like sardine, THe " upsize PIE to Woodland take 2 years to complete, Have LTA done their home-work ?

I reckon they wait for problem to exist then trouble-shoot, after all why do we pay yearly road-tax for

 

[Meanmachine]

Car are big biz for entrepreneur, it is not easy to deal with relevant authority, it will take ages to come to a conclusion.

 

Donkey years ago, I recalled PM said over National day parade speech, " Quote and unquote: " You pay for car c.c on your engine capacity, the higher c.c the more road tax you're gonna pay, simple as that. "

 

How does this translate to ? ( those days COE was under 15-20K ) so everybody jump on the bandwagon, HOw does coe jump so high ?

 

In short, as a layman's view, they failed to cope with the situation and allows to shoot sky-high COE , who is responsible and manipulation.

 

Where is the check and balance ?

 

It does not justify high COE, ERP CAr prices shooting north.... THe intention is to control car population, but motorist see things otherwise.

we pay to go in ERP to work and pAy to go home too.

[Enye]

usually, the loan gets approved before the AD secures the COE.

 

if that's the case,

 

then usually I would say the buyers are stupid to let the banks milk

 

but to be sensitive to their feelings, I would just say that they must urgently need a car

 

Edited May 24, 2013 by Enye

[Ictruall]

if that's the case,

 

then usually I would say the buyers are stupid to let the banks milk

 

but to be sensitive to their feelings, I would just say that they must urgently need a car

 

 

Actually not stupid la, just no money to pay full ....so must loan lor

 

Dun care urgent or not,...just.enjoy the ride man, like me [drivingcar]

[Mosaic1979]

Car are big biz for entrepreneur, it is not easy to deal with relevant authority, it will take ages to come to a conclusion.

 

Donkey years ago, I recalled PM said over National day parade speech, " Quote and unquote: " You pay for car c.c on your engine capacity, the higher c.c the more road tax you're gonna pay, simple as that. "

 

How does this translate to ? ( those days COE was under 15-20K ) so everybody jump on the bandwagon, HOw does coe jump so high ?

 

In short, as a layman's view, they failed to cope with the situation and allows to shoot sky-high COE , who is responsible and manipulation.

 

Where is the check and balance ?

 

It does not justify high COE, ERP CAr prices shooting north.... THe intention is to control car population, but motorist see things otherwise.

we pay to go in ERP to work and pAy to go home too.

 

don t buy car lor.. If car COE remains at 15-20k, no ERP we will become like Bangkok or Jakarta. Take 3 hours from ang mo kio to orchard road. Than how? People will complain can own car but no point driving because roads too congested. MNCs will complain, take 4-5 hours just to move my goods around, no point doing business here, I pull out, people lose jobs. There is no perfect arrangement one lah.

[Sdxx]

don t buy car lor.. If car COE remains at 15-20k, no ERP we will become like Bangkok or Jakarta. Take 3 hours from ang mo kio to orchard road. Than how? People will complain can own car but no point driving because roads too congested. MNCs will complain, take 4-5 hours just to move my goods around, no point doing business here, I pull out, people lose jobs. There is no perfect arrangement one lah.

 

+1

 

People only see from their point, want a car and want it cheap. Never think of the consequences of what if everyone can buy car so long has a job to pay monthly loan? As it is I can only afford 1 car, if car price drop to 50k for a jap 1.6l car, I will go buy another 1 for wifey to use.

[Kiwi]

don t buy car lor.. If car COE remains at 15-20k, no ERP we will become like Bangkok or Jakarta. Take 3 hours from ang mo kio to orchard road. Than how? People will complain can own car but no point driving because roads too congested. MNCs will complain, take 4-5 hours just to move my goods around, no point doing business here, I pull out, people lose jobs. There is no perfect arrangement one lah.

 

^This.

 

Cheaper cars or low road congestion, sadly these 2 are mutually exclusive in our land scarce nation. Basic economics.