Ripple Effect of Car Loan Curbs

[RadX]

Good to see who esle will be affected with the CM1 for cars. Grooming and paintworks mentioned so far

 

 

 

 

SINGAPORE: Motor firms Channel NewsAsia spoke with said recent loan curbs on car purchases are having negative ripple effects on some vehicle-related services.

 

They said this effect is likely to be more pronounced, with a temporary reprieve on borrowing limits for used car dealers ending on Tuesday.

 

On Wednesday, the loan curbs set by authorities in February will return in full force.

 

Used car dealers cleared much of their old stock in the 60-day reprieve period given by authorities, where people could take up to 100-per cent loans for car purchases.

 

It applied to some 7,000 second-hand vehicles, with over 4,800 sold.

 

Car dealers have been saying second-hand luxury vehicles are difficult to sell, even if buyers can take up full loans to buy them. Such cars simply do not suit the needs of the many budget-conscious people looking for cheaper, second-hand buys.

 

With the reprieve period over, the maximum borrowing limit is 60 per cent of the purchase price.

 

Dealers said the high down-payment needed to get a vehicle is causing the new supply of used cars for sale to shrink.

 

Owners are likely to hold on to their old rides since conditions for getting a new one are tough.

 

Mike Wee, owner of Mayfair Motoring, said: "People will maintain their car, drive their car until almost the end, until the car really needs to (be scrapped). Then probably they will change to another car."

 

Fewer used cars for sale also means less need for some vehicle-related services.

 

Kenson Goh, sales executive at Car Design, said: "The spray-painting and the car-grooming sector will be affected. Because basically we can't move our old stock, we aren't able to bring in new stock. So therefore we're unable to send over new stock over to the spray-painting or car-grooming companies."

 

Empty shop spaces at the Automobile Megamart in eastern Singapore showed how firms have downsized operations. Motorviva sells commercial vehicles, which are not hit by loan curbs. It has taken over a prime spot at Automobile Megamart, vacated by a used car dealer.

 

Joe Quah, assistant sales manager at Motorviva, said: "The car loan curb - I think all of us know that it has hit the market quite badly. So I think that gives us opportunities to find this very good location which we have always wanted."

 

With business slowing, car dealers said rental rates at Automobile Megamart have fallen about 40 per cent.

 

- CNA/xq

[Duckduck]

there is a difference between sustainable n unsustainable businesses. Government regulation is a well known biz risk. Look at property. If they cannot take regulatory risk n adapt to survive, then maybe they shldnt b running their own biz n go find a job instead imo. All biz types have inherent regularity n economic risks

[Roh96]

One positive effect are those repair workshops, more old cars on road mean more business for them.

[Kangadrool]

One positive effect are those repair workshops, more old cars on road mean more business for them.

 

Good for them. Hopefully, they will employ more local talents with higher pay. I rather see they (skilled mechanics) earn than 2nd hand car salespeople.

[Kelkoh974]

Good for them. Hopefully, they will employ more local talents with higher pay. I rather see they (skilled mechanics) earn than 2nd hand car salespeople.

 

 

UPPPSSS for this.

[Carnoob]

Good for them. Hopefully, they will employ more local talents with higher pay. I rather see they (skilled mechanics) earn than 2nd hand car salespeople.

 

Local skilled mechanics are oso hard to find, dun look far just look back at AD service ctr, their mechanics are oso mostly malaysians... And for used cars, I would rather go Malaysia for maintenance repair and servicing. The prices are 2x cheaper than Singapore.

 

My FIL always go in Malaysia to repair his motor bike. Similarly for my friends, bought 2nd hand, drive across causeway, do repair and servicing, go shopping, pump petrol and come back Singapore.

[Tarzan666]

Repair of coz cheaper..but msia may not have the parts for your car..

 

best is buy 1st from local stockist what you want to change & bring there to change..

[Wt_know]

sibei lame ... go check out sin ming, ubi, bukit merah, etc

workshop business sibei good .... since many hold on to their cars ... many are more willing to upkeep their car to drive for the next few years

servicing, changing of wear and tear parts, re-spray even change color, re-upholstery, etc ...

 

used car dealers are the biggest liar !!! kenson, go open a workshop la ... sure huat till you drop

 

Good to see who esle will be affected with the CM1 for cars. Grooming and paintworks mentioned so far

 

SINGAPORE: Motor firms Channel NewsAsia spoke with said recent loan curbs on car purchases are having negative ripple effects on some vehicle-related services.

 

They said this effect is likely to be more pronounced, with a temporary reprieve on borrowing limits for used car dealers ending on Tuesday.

 

On Wednesday, the loan curbs set by authorities in February will return in full force.

 

Used car dealers cleared much of their old stock in the 60-day reprieve period given by authorities, where people could take up to 100-per cent loans for car purchases.

 

It applied to some 7,000 second-hand vehicles, with over 4,800 sold.

 

Car dealers have been saying second-hand luxury vehicles are difficult to sell, even if buyers can take up full loans to buy them. Such cars simply do not suit the needs of the many budget-conscious people looking for cheaper, second-hand buys.

 

With the reprieve period over, the maximum borrowing limit is 60 per cent of the purchase price.

 

Dealers said the high down-payment needed to get a vehicle is causing the new supply of used cars for sale to shrink.

 

Owners are likely to hold on to their old rides since conditions for getting a new one are tough.

 

Mike Wee, owner of Mayfair Motoring, said: "People will maintain their car, drive their car until almost the end, until the car really needs to (be scrapped). Then probably they will change to another car."

 

Fewer used cars for sale also means less need for some vehicle-related services.

 

Kenson Goh, sales executive at Car Design, said: "The spray-painting and the car-grooming sector will be affected. Because basically we can't move our old stock, we aren't able to bring in new stock. So therefore we're unable to send over new stock over to the spray-painting or car-grooming companies."

 

Empty shop spaces at the Automobile Megamart in eastern Singapore showed how firms have downsized operations. Motorviva sells commercial vehicles, which are not hit by loan curbs. It has taken over a prime spot at Automobile Megamart, vacated by a used car dealer.

 

Joe Quah, assistant sales manager at Motorviva, said: "The car loan curb - I think all of us know that it has hit the market quite badly. So I think that gives us opportunities to find this very good location which we have always wanted."

 

With business slowing, car dealers said rental rates at Automobile Megamart have fallen about 40 per cent.

 

- CNA/xq

Edited June 5, 2013 by Wt_know

[Kangadrool]

Local skilled mechanics are oso hard to find, dun look far just look back at AD service ctr, their mechanics are oso mostly malaysians... And for used cars, I would rather go Malaysia for maintenance repair and servicing. The prices are 2x cheaper than Singapore.

 

My FIL always go in Malaysia to repair his motor bike. Similarly for my friends, bought 2nd hand, drive across causeway, do repair and servicing, go shopping, pump petrol and come back Singapore.

 

It's a chain effect, going circles for years. Hopefully, the tightening of cheap foreign labour will help preserve local talents.

 

I won't join in this trade even if I am a ITE graduate with great interest in automotive. Reasons are too obvious which I won't state here. There's no need to state here too.

[Timex1441]

ya....these dealers r desperate n will say anything to try n get some goodies fr the govt...

[Carnoob]

sibei lame ... go check out sin ming, ubi, bukit merah, etc

workshop business sibei good .... since many hold on to their cars ... many are more willing to upkeep their car to drive for the next few years

servicing, changing of wear and tear parts, re-spray even change color, re-upholstery, etc ...

 

used car dealers are the biggest liar !!! kenson, go open a workshop la ... sure huat till you drop

 

They are toking about those workshop specialized in car grooming and spray paint only lah... repair workshop no lack of biz, Singapore got so many cars, commercial vehicles, etc.

 

So those dat just starting their car grooming service will close shop unless you have regular customers.

[Mockngbrd]

They just trying to make story la. car grooming/spray paint will still have business one lo cos ppl keep car longer

[Carnoob]

They just trying to make story la. car grooming/spray paint will still have business one lo cos ppl keep car longer

 

Ya agree, regular customers only. Just imagine, used car dealers sent for grooming, car groomers charge expensive, dealers just factor in selling price, car groomers happy, car dealers happy only consumers get "carrot" mah

 

Now consumers go car grooming, want this, want that and more discount since got so many to choose from. Of course lose out lah...

 

Used car biz and related is a very BIG cash cows, now only a small chicken, how to survive?! hahaaa...

Edited June 5, 2013 by Carnoob

[Carnoob]

soon they will say, no jobs for singaporeans

[Carnoob]

delete double post

Edited June 5, 2013 by Carnoob

[Duckduck]

dont pple realize that d fact that they can get CNA to publish an article, it means theyre connected n powerful enuff 2 get state controlled media attention? Seems 2 me lots of vested interest in car biz here... wonder who r connected pple behind d scenes pushing buttons...

[Wt_know]

soon the boss with 5000 used cars will say business no good ... hundreds of staff are affected ... cry papa cry mama ...

 

soon they will say, no jobs for singaporeans

 

[Wt_know]

yeah ... how come newspaper never publish how much car owner and buyer hates dealer !!! LOL ....

 

dont pple realize that d fact that they can get CNA to publish an article, it means theyre connected n powerful enuff 2 get state controlled media attention? Seems 2 me lots of vested interest in car biz here... wonder who r connected pple behind d scenes pushing buttons...

Edited June 5, 2013 by Wt_know