Will used car price drop after 33% increment of COE in May?

[Ghostami]

Bro, there are simply too many jokers around. Read from Today Newspaper. a young chap with 2.3K salary dare to own a 60K... in fact, the car is only 55K and he over loan additional 5K to spend. You can imagine what happen to him next.

There will still be such jokers. You just see how many young chaps on the road with new cars, I heard before from 1 the downpayment made by dad and rest ownself pay. And he just started out work. 

 

Worrying is how many do not have such a good dad and borrow instead. Think all these regulations plus the mentality of people nowadays especially youths are scary.

[13177]

Bro, there are simply too many jokers around. Read from Today Newspaper. a young chap with 2.3K salary dare to own a 60K... in fact, the car is only 55K and he over loan additional 5K to spend. You can imagine what happen to him next.

How come with a 2.3k salary can loan approved amount of 60k loan?

Edited June 21, 2016 by 13177

[Tigershark1976]

How come with a 2.3k salary can loan approved amount of 60k loan?

 

 

why not, Just inflate the loan will do. This is what many PI and 2nd hand car dealer do all these while.

[13177]

why not, Just inflate the loan will do. This is what many PI and 2nd hand car dealer do all these while.

No wonder so many people can go bankrupt!

[Tigershark1976]

No wonder so many people can go bankrupt!

yup... its a bloody scheme that kills a lot of youngsters...

 

Just imagine, a 30K car, buy no $$$, so dealer just inflate the selling price to 60K. additional 25K goes to down payment, 5K goes to buyer pocket to rice up his new ride. 1 months later, the buyer finally found that he is broke when the 5K is finished.

[13177]

OMG, same like borrow money from loanshark! Borrow 30k, return 60k!

[Zaxx]

why not, Just inflate the loan will do. This is what many PI and 2nd hand car dealer do all these while.

How do u inflate the loan? Instead if 60k loan inflate till 80k loan? But credit worthiness still remain the same with 2.3k mthly income? Worse still the monthly repayment will be higher? Care to enlighten a noob?

[Tigershark1976]

How do u inflate the loan? Instead if 60k loan inflate till 80k loan? But credit worthiness still remain the same with 2.3k mthly income? Worse still the monthly repayment will be higher? Care to enlighten a noob?

 

bank will approve the loan based on few criteria, downpayment is 1 of the most important criteria for loan approval. Of course, credibility (MAS records), annual income, outstanding loans and etc is very important as well. The guy annual salary is over 30K, 60K loan is less than 2 time of his annual and if he doesn't have other outstanding loan with banks. its usually approved easily.

 

I even came across a guy who got his loan approve back in 2008 with his 1.6K monthly income for a Lancer EX that cost more than 60K

Edited June 21, 2016 by Tigershark1976

[Mockngbrd]

yup... its a bloody scheme that kills a lot of youngsters...

 

Just imagine, a 30K car, buy no $$$, so dealer just inflate the selling price to 60K. additional 25K goes to down payment, 5K goes to buyer pocket to rice up his new ride. 1 months later, the buyer finally found that he is broke when the 5K is finished.

 

i dunch get it... so apply to bank for loan of 60k? but car 30k, why DP of car is 25k? 

 

 

Edited June 21, 2016 by Mockngbrd

[G1234]

bank will approve the loan based on few criteria, downpayment is 1 of the most important criteria for loan approval. Of course, credibility (MAS records), annual income, outstanding loans and etc is very important as well. The guy annual salary is over 30K, 60K loan is less than 2 time of his annual and if he doesn't have other outstanding loan with banks. its usually approved easily.

 

I even came across a guy who got his loan approve back in 2008 with his 1.6K monthly income for a Lancer EX that cost more than 60K

 

wow.... that's crazy! 

[Tigershark1976]

i dunch get it... so apply to bank for loan of 60k? but car 30k, why DP of car is 25k? 

 

 

 

because some youngsters think they are smart, loan more and get some money to spend. they didnt know that the loan need to be paid.... :slow:

[Hosaybo]

Dun just say youth.....some ah pek also like that and ended up in shit.

[13177]

Actually if a person buy a 30k car, still consider not very expensive. No need to inflate the loan la, just save about 10k for downpayment and loan the rest.

[Tigershark1976]

Actually if a person buy a 30k car, still consider not very expensive. No need to inflate the loan la, just save about 10k for downpayment and loan the rest.

bro, 10K savings is easy if a person have the habit of savings. There are many people who spend every single cents they have by month end. 10K savings for them is a "never achievable" target. Worst still, many even live on credit.... inflating their credit card debts every month...

[Bystander50]

Went to  view used cars and in one of the shops counted >35-40 used cars for sale

 

Asked dealer an innocent question, sure u can sell all of these cars?

 

Dealer responded, friend, spore is so tiny with limited roads, go count how many people living here and how many more people there will be in the next 10 years, then go do a survey how many aspire to own a car. When u get the answers, u will know that coe will never be cheap and if it happens to be cheap it is usually due to some unnatural/unusual events 

 

Dealer confidently said, all my cars will find a buyer, it is a matter of time. Not everyone can afford 50% DP for new cars and some like to buy 8-10 yrd old cars to time coe price.

 

wow, if it is true, lets say if 8-10k profit per car, that's easily 400k profit over a few months

 

Unless current rules change, hard for used cars prices to drop much

 

 

 

 

   

 

 

Solution is simple, prevent the ADs from dictating how much they are bidding for the COE.

Let buyers specify the amount they are willing to pay for and let these ADs or dealers provide the "value add" services on bidding.

 

Right now, buyers are at their mercy while the ADs and dealers are laughing all the way to the banks with their posh showrooms.

The higher the COE, the more loan you need to get from the bank. The ADs or dealers get a higher commission from the loan.

Not forgetting the insurance as well.

 

The gov knows, but chooses to let it go this way because the COE generated is high and brings in certain revenue bi-monthly.

Unlikely they'll agree or come out with rules to ban ADs or dealers from bidding.

[Wt_know]

no need so long winded la

simply, what's wrong to collect more

 

The gov knows, but chooses to let it go this way because the COE generated is high and brings in certain revenue bi-monthly.

Unlikely they'll agree or come out with rules to ban ADs or dealers from bidding.

 

[G1234]

Used car seem to drop a little further now right after the loan policy revised. So is a good news for us consumers. 

[car50]

Pros and cons for owner bidding

Not so straightforward

Thought they should at least give it a trial

Solution is simple, prevent the ADs from dictating how much they are bidding for the COE.

Let buyers specify the amount they are willing to pay for and let these ADs or dealers provide the "value add" services on bidding.

 

Right now, buyers are at their mercy while the ADs and dealers are laughing all the way to the banks with their posh showrooms.

The higher the COE, the more loan you need to get from the bank. The ADs or dealers get a higher commission from the loan.

Not forgetting the insurance as well.

 

The gov knows, but chooses to let it go this way because the COE generated is high and brings in certain revenue bi-monthly.

Unlikely they'll agree or come out with rules to ban ADs or dealers from bidding.

 

Where is the evidence that used car prices have dropped

Up or down market, used car prices always high

Used car seem to drop a little further now right after the loan policy revised. So is a good news for us consumers.