MAS and Car loan curb issues

[Sleepyrob]

  On 7/15/2014 at 2:06 PM, Damienic said:

No doubt if the COE supply remains tight, removing the loan curbs will to a certain extent affect the COE premiums. My gut feel is that the loan curbs will only be removed if the COE plunged a lot lower and that the COE supply are significantly higher than current. If the COE supply are going to be increased to another 40-50% higher than current, I doubt the removal of loan curbs will cause it to rocket significantly as the high supply of COE quota will still help to keep premiums at a fairly reasonable level somewhat.

 

But anyway I doubt they will remove the loan curbs completely. Probably more like tweaking it to something in between like the one we had prior to 2005 ie 70%, 7 yrs, rather than a full removal.

 

that'll probably come next year near Aug...

 

with Sinkie's 50 year old bash, PAPies will ride on its 'successful' nation building campaign with a lightning election with people friendly policies to assure its continued governance of its daft sinkies...

[Galantspeedz]

http://www.mas.gov.sg/News-and-Publications/Media-Releases/2016/MAS-Eases-Rules-on-Motor-Vehicle-Financing.aspx

 

 Taking these developments into account, the rules on motor vehicle loans will be revised as follows with effect from 27 May 2016²:

Open Market Value
of motor vehicle

Maximum LTV* Maximum loan tenure

 Less than or equal to $20,000

 70% (previously 60%)

 7 years
(previously 5 years)

 More than $20,000

 60% (previously 50%)

* LTV is the amount of the loan expressed as a percentage of the purchase price of the motor vehicle. The purchase price includes relevant taxes and price of the COE.

[Carnoob]

  On 5/26/2016 at 9:51 AM, Galantspeedz said:

http://www.mas.gov.sg/News-and-Publications/Media-Releases/2016/MAS-Eases-Rules-on-Motor-Vehicle-Financing.aspx

 

 Taking these developments into account, the rules on motor vehicle loans will be revised as follows with effect from 27 May 2016²:

Open Market Value

of motor vehicle

Maximum LTV* Maximum loan tenure

 Less than or equal to $20,000

 70% (previously 60%)

 7 years

(previously 5 years)

 More than $20,000

 60% (previously 50%)

* LTV is the amount of the loan expressed as a percentage of the purchase price of the motor vehicle. The purchase price includes relevant taxes and price of the COE.

I see COE up up and away...

[rickosw]

how will the new rules affect car-lite?

Edited May 26, 2016 by rickosw

[Alfc]

Smart move to counter the rental model....

[Lala81]

  On 5/26/2016 at 9:55 AM, Alfc said:

Smart move to counter the rental model....

 

sorry, can you elaborate further?

[Audi2016]

So.. who's buying a second car? Or third?

[Galantspeedz]

  On 5/26/2016 at 9:58 AM, Lala81 said:

sorry, can you elaborate further?

 

make uber pay more for COE? 

[Hosaybo]

Maybe uber demand softening. Need a boost to the coe.

Edited May 26, 2016 by Hosaybo

[Ahbengdriver]

its a very small change.

[Alfc]

By making financing easier, those that originally can only get car via rental will have alternative. Will rental company still come in and bid for a lot more COEs now they are not the only channel for "marginal" drivers. The original intent of the policy to encourage prudent spending has already been circumvented, so why bother keeping so strict about it?

[Heman75]

Now i am going to see what reason those who predict COE will crash and calling those ppl who buy KC spiders have to say. good luck waiting..

 

[Vratenza]

I think the essence of this adjustment is this:

 

  Quote

 

 

6   The Ministry of Trade and Industry will apply the revised financing restrictions to non-MAS regulated entities which extend motor vehicle financing on a hire-purchase basis. The Ministry of Law will also require licensed moneylenders to comply with the revised financing restrictions.

 

 

This closes up the loop hole that has been the reason why 2nd hand car market is flourishing  despite the previous ruling since non-MAS regulated entitities can loan 80% or even 100%?

 

[Blueray]

  On 5/26/2016 at 10:10 AM, Vratenza said:

I think the essence of this adjustment is this:

 

 

 

This closes up the loop hole that has been the reason why 2nd hand car market is flourishing  despite the previous ruling since non-MAS regulated entitities can loan 80% or even 100%?

 

good point. 

[Angcheek]

  On 5/26/2016 at 9:55 AM, Alfc said:

Smart move to counter the rental model....

 

hahhaa yap smart move indeed 

[Check13]

obviously govt feel Coe premium has reach their bottom threshold. I have a feeling quota will not rise as much in the next 2 years resulting in higher premiums. so they wanna make it easier to loan, provided your tdsr is fine.

[Audi2016]

  On 5/26/2016 at 9:59 AM, Galantspeedz said:

make uber pay more for COE? 

 

The changes make affordability factor a less significant one.. Making it slightly easier to buy/own a new car, will make potential Uber drivers to give up on the Uber rental programme & buy/own a new car by themselves since able to take up loan longer and bigger quantum.

 

So Uber suddenly seems less attractive, albeit slightly only.

[nazerath]

Unbelievable...........