Financing guideline to 2nd hand car purchase

[Passion]

Hi guys, I have lost touch with the market for quite sometime. Last time I remember buying a new or used car is quite straight forward. Car price equals to import tax, ARF, COE and some kuni kuching fees. Now, with the introduction of CEVS, 50% loan 5 years loan period, it got a little messy. So, if any bros or sis here know of the guideline for new and old car. How CEVS work for old and new car? How loan structure works for old car since some cars may not have 5 years left? For example, I wish to purchase a 3 year old car, I can loan only 2 years, up to the 5th year of the car age, is this true? I will also have to down 50% of the sales price of the second hand car, true? Pls correct me if I'm wrong. I couldn't seems to find the info off MAS and onemotoring website.

[Dafansu]

Information available here

 

http://www.sgcarmart.com/news/writeup.php?AID=171

[Passion]

Information available here

 

http://www.sgcarmart.com/news/writeup.php?AID=171

Thanks! Only apply to new car? What about secondhand car? How does the rules apply?

[Hutan]

Thanks! Only apply to new car? What about secondhand car? How does the rules apply?

 

anyone any clue?

[Hamburger]

No. Its a no brainer actually.

[Bicolor]

How loan structure works for old car since some cars may not have 5 years left? For example, I wish to purchase a 3 year old car, I can loan only 2 years, up to the 5th year of the car age, is this true? I will also have to down 50% of the sales price of the second hand car, true? Pls correct me if I'm wrong. I couldn't seems to find the info off MAS and onemotoring website.

 

The loan tenure, not the age of the car, is subject to a maximum of 5 years. So the car age doesn't count in this instance.

Whether new or second hand cars, you have to produce either a 40% or 50% downpayment for cars with OMV below or above $20,000 respectively.

[kaypohboi]

Hi guys, I have lost touch with the market for quite sometime. Last time I remember buying a new or used car is quite straight forward. Car price equals to import tax, ARF, COE and some kuni kuching fees. Now, with the introduction of CEVS, 50% loan 5 years loan period, it got a little messy. So, if any bros or sis here know of the guideline for new and old car. How CEVS work for old and new car? How loan structure works for old car since some cars may not have 5 years left? For example, I wish to purchase a 3 year old car, I can loan only 2 years, up to the 5th year of the car age, is this true? I will also have to down 50% of the sales price of the second hand car, true? Pls correct me if I'm wrong. I couldn't seems to find the info off MAS and onemotoring website.

 

For new cars think there are not much changes. CEVS and all the rebates are deducted off the car price when you purchase. So I think the loan amount is also based on the price after those deductions. CEVS for used car is already deducted from the parf rebate, so think price is already adjusted. Loan period loan up to max 5 years for old and new cars, loan amount 50-60% depending on omv value. For used cars, omv will be pro-rated according to age for the loan I think, meaning that for a 20k omv vehicle, if purchased at 5 years old, could loan up to 60%.

[Sci10213]

 

The loan tenure, not the age of the car, is subject to a maximum of 5 years. So the car age doesn't count in this instance.

Whether new or second hand cars, you have to produce either a 40% or 50% downpayment for cars with OMV below or above $20,000 respectively.

 

The loophole still exists i.e. the loan rules apply only to banks.

 

Other finance or credit companies still can offer 100% loan. Go check it out to verify.

[tanbk]

 

The loan tenure, not the age of the car, is subject to a maximum of 5 years. So the car age doesn't count in this instance.

Whether new or second hand cars, you have to produce either a 40% or 50% downpayment for cars with OMV below or above $20,000 respectively.

 

Not true bro.

MAS backed down from this stance on 14-Mar-2013.

 

Read : http://www.sgcarmart.com/news/article.php?AID=7598

 

"The Monetary Authority of Singapore (MAS) has introduced financing restrictions on motor vehicle loans granted by financial institutions from 26th February 2013.

 

For used cars, the maximum loan amount will be dependent on Applicable Open Market Value* (Applicable OMV) of the car. Cars with Applicable OMV exceeding $20,000 will be entitled to a maximum loan value of 50% of car price (minimum 50% down payment) whereas Applicable OMV $20,000 and below will be 60% of car price (minimum 40% down payment).

 

*The "Applicable OMV" of a motor vehicle is obtained by dividing its OMV over 120 months and multiplying it by the age of the motor vehicle and deducting the resulting figure from the Applicable OMV.

 

For illustration: http://www.sgcarmart.com/news/article.php?AID=7598

 

In addition, the maximum car loan term will be capped at 5 years.

 

The financing restrictions will not apply to loans for the purchase of commercial vehicles or motorcycle."

 

The loophole still exists i.e. the loan rules apply only to banks.

 

Other finance or credit companies still can offer 100% loan. Go check it out to verify.

 

Not true. MAS worked with MTI to plug this loophole in June-2013.

 

Read : http://news.xin.msn.com/en/singapore/motor-vehicle-and-residential-property-loan-curbs-extended-to-licensed-moneylenders

[Bicolor]

I see... looks like I was mistaken or outdated about the OMV vs Applicable OMV thing. Thanks for clarifying.

 

But my answer to Passion regarding the maximum 5 year loan is still accurate, in that it doesn't mean that if you buy a 3 year old car, your loan can only last 2 years, up till the car is 5 years old. Rather, you can take a maximum of a 5 year loan, up to the car's 8th year.

 

 

 

 

Not true bro.

MAS backed down from this stance on 14-Mar-2013.

 

Read : http://www.sgcarmart.com/news/article.php?AID=7598

 

"The Monetary Authority of Singapore (MAS) has introduced financing restrictions on motor vehicle loans granted by financial institutions from 26th February 2013.

 

 

The loophole still exists i.e. the loan rules apply only to banks.

 

Other finance or credit companies still can offer 100% loan. Go check it out to verify.

 

Loophole plugged by MAS already.

 

Some companies offer in house loans higher than the 60% or 50% by over-declaring the price of the car, thus increasing the loan amount. But the increase isn't that much anyway.

 

Some companies still offering 100% loan, but when you go down and find out more, you'll realize that it's actually a sort of leasing scheme as the car won't be transferred to your name. Thus the term "loan" is actually very misleading in this case.

[Voodooman]

 

Loophole plugged by MAS already.

 

Some companies offer in house loans higher than the 60% or 50% by over-declaring the price of the car, thus increasing the loan amount. But the increase isn't that much anyway.

 

 

Yeah, it is happening everyday. MAS should really close the loophole as the selling price can suka suka whack one. Like the below example.

 

http://www.sgcarmart.com/used_cars/info.php?ID=396076

 

Buyer probably found as asking price just went up from 180k to 248k for a 2 years old F10, PML is selling a brand new one with lots of freebies for around 230k, IIRC Additional loan of 34k secured, making it a circa 70% financing.