Used-car dealers urge MAS to review loan curb

[Darthrevan]

 

The Singapore Vehicle Traders Association on Tuesday met the Monetary Authority of Singapore (MAS), calling for a review on loan curbs for used cars.

 

The association represents more than 400 used-car dealers in Singapore.

 

It is proposing that used-car buyers be allowed to borrow up to 80 per cent of the purchase price and for the loan to be serviced over eight years, instead of 60 per cent and five years under current rules that took effect late February.

 

The rules were lifted temporary for a 60-day reprieve period from 6 April to 4 June.

 

The association, which has been monitoring feedback from its members, said many dealers are suffering, with business dropping by at least 50 per cent since the reprieve period ended.

 

Raymond Tang, honorary secretary of the Singapore Vehicle Traders Association, said: "New cars and used cars having the same type of loan curbs will (result in the) majority of consumers buying new ones. This adds more pressure on new cars, especially now when the COE supply is not enough. After the 60-day concession period... we can see COE prices rising tremendously, going as high as S$81,000.

 

"So we urge MAS to consider making the loan curb different for the used and the new cars... (to) ease pressure on new cars and cool COE prices."

 

Source: http://www.channelnewsasia.com/news/singap...mas/775634.html

[Darthrevan]

 

MAS: Loan curbs for used cars to stay for now

 

It seems like the loan curbs for used cars are here to stay -- at least for awhile.

 

Despite representations from used car dealers, the Monetary Authority of Singapore (MAS) said on Wednesday that the financing restrictions remain relevant as it encourages financial prudence among consumers and exerts a moderating influence on COE prices.

 

Under current rules that took effect in late February, used-car buyers can borrow only up to 60 per cent of the car's purchase price, with the maximum period of the loan capped at five years.

 

The Singapore Vehicle Traders Association met MAS on Tuesday to call for a review of the curbs.

 

The association said many dealers are suffering, with business dropping by at least 50 per cent.

 

It is proposing that buyers be allowed to borrow up to 80 per cent of the purchase price, and for the loan to be serviced for up to eight years.

 

MAS said in a statement on Wednesday that it appreciates the feedback, emphasising that the financing restrictions are not permanent.

 

It also added that it will continue to monitor the situation and review the calibration of the restrictions in line with market conditions.

 

Source: http://www.channelnewsasia.com/news/singap...ars/776690.html

[Sforester]

Fantastic.. I really don't mind if the rules get tighter..

[Pms]

Let them bleed!

 

The reputable surely has a strong fanbase and will last this tide.

[TVT]

The association, which has been monitoring feedback from its members, said many dealers are suffering, with business dropping by at least 50 per cent since the reprieve period ended.

They just have to find new and creative ways to do business. Why complain so much?

 

Best is let the new policies wipe out those blacklisted and dishonest dealers.

[Thaiyotakamli]

Those ah gou ah mao dealer better close down la, they are those with most prob. Let the reputable one stay will do and 50% rule 5 yrs is reasonable. Maybe for new car 50% 8 years

[Ronleo]

This Raymond Tang very cunning guy...

 

Had a bad experience with him back in 2008...

 

Anyway, if biz is sooo bad for dealers, NO SYMPATHY for them!!!

 

Why can't they juz bring down the resale car value? I will support

Them with action immediately!!! Insane prices now...

[Yewheng]

Yes get rid of blacksheep 1st. Want to appeal better make sure there is justification. The tempering of odometer has been hAppening for many years and he act blur, even with many people complain in forum and etc. Now want fight for loan restriction?? He better do some soul searching 1st.

[Zxcvb]

Government better don't listen to all these ah beng ah seng second-hand car dealers. If these ppl get their way with 80% loan over 8 years, then I gurantee you the prices for 2nd hand car will be jacked up!!! On top of that, they will earn more commission with higher loan and longer loan tenor. Huat ah!!!

 

[Zxcvb]

[Civic6228]

MAS should provide some facts and figures ........

 

How many people are defaulting on their payment ? What is the percentage ? What type of loans (How many years loan/Loan percantage) are defaulting ?

 

If the default percentage is mimimal, it does not justified what they are doing.

[AdamColeman]

Those loan curbs in place is to reduce cars on the road .. if loan up to 80% , might as well remove the loan curbs better. No money, dont buy car . simple .. :)

[Scholesy]

if MAS had been firm, thk these buggers wil keep trying and trying their luck? but no, MAS gave in one time, which allowed them to bring forward 2 months sales.

 

then had MAS done a good due diligence prior to implementation or they did and feel there is no real "hardship" in the new policies, why does it seem so difficult to shut this bunch up? painfully funny.

 

 

 

[Yeshe]

preown cars are usually cheaper and 40-50% DP is really not alot.

if cannot afford, then dun buy cars.

 

 

[F355]

Curb loan for new cars dealers come up with leasing scheme.

 

Increase loan limit for used cars dealers probably register a new one then sell as used so that buyers can get more loan.

[Mockngbrd]

car cannot sell then lower price lor

[Celicar]

No mercy, no pity, car buyers suffer can, they suffer cannot.

[Sugar]

Increase loan limit for used cars dealers probably register a new one then sell as used so that buyers can get more loan.

 

 

What do you mean by this?