MAS Imposes Financing Restrictions on Motor Vehicle Loans

[Shev]

Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans

It is not about the absolute amount but I bought what I could afford within my means following faithfully my personal financial scheme. When I was a poor student in uni, I live in rented flat, recycle my clothes year after year and rode a bicycle and ate bread, ok branded bread it was Gardenia
I did not shortchange my self though, I was lean and fit through the hard times which I still live with some regret that I failed to maintain (the lean and fit part)
Anyway, I bought Jap cars in my 20s and 30s lah, not that I lived like a scrooge though some said I was somewhat one lol.

I am living in exact same lifestyle as you at 20s and early 30s but I can only pay off hdb in a couple of years. the hdb price increase vs income increase has made the real income shrink so bad. Then I have reason to believe that the absolute amount matters.

My parents own a condo that is fully paid off but their salaries have never exceeded 5k each. They are more prudent than myself eating leftovers and even recycling their shoes.
Maybe they made as much as you did whilst selling off the first and second hdb flats.

 

[porky88]

Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans

panamera looks like crap.... wobbles say one....

Maybe his sedan is a Porsche Panamera ... better don't delete yet
But that is beside the point, the real message porky88 and me is conveying is to spend within your means and plan for your future financial freedom.

 

[Shev]

Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans

Maybe you have something against porky88 which i may not know.

But he did mention make provision and have enough cash to see the borrower over a comfortable period.
What he means is not to stretch for something which is beyond our means.
His post is in no way pointing to anyone dun need to take loan from bank for housing or whatever

First of all I dun even know who is porky.

Secondly this is a forum to air views and opinions isn't it?

Maybe you have something against me which I dun know.

 

[Jason8822]

Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans

Maybe his sedan is a Porsche Panamera ... better don't delete yet

Heard he just ordered the new maserati quattroporte 6
But he's damn pissed off cos he kenna screw on the arf and now he have to settle with 50% loan instead of taking 110% loan

 

[porky88]

Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans

wah piang.... how u know? i go grill maserati se tomorrow... pichar lobang!!

Heard he just ordered the new maserati quattroporte 6
But he's damn pissed off cos he kenna screw on the arf and now he have to settle with 50% loan instead of taking 110% loan

 

[Jason8822]

Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans

wah piang.... how u know? i go grill maserati se tomorrow... pichar lobang!!

Pls dun.
Not your se told me.
Wobbles pm me about it.

 

[detach8]

Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans

Sometimes life is just sway.

People talk about paying off car, paying off flat.

For me I got a fucked up deal with my HDB flat. I bought it at a decent price, but I got a fucked up neighbour. Ask me to pay it off, also damn buay gam guan.

 

[porky88]

Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans

jun bo? uncle wobbles sibei steady one....

Pls dun.
Not your se told me.
Wobbles pm me about it.

 

[ktnpl]

Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans

I am living in exact same lifestyle as you at 20s and early 30s but I can only pay off hdb in a couple of years. the hdb price increase vs income increase has made the real income shrink so bad. Then I have reason to believe that the absolute amount matters.

My parents own a condo that is fully paid off but their salaries have never exceeded 5k each. They are more prudent than myself eating leftovers and even recycling their shoes.
Maybe they made as much as you did whilst selling off the first and second hdb flats.

My colleagues who are 10 years older have bought freehold landed which are now out of my reach so I have never considered that as an option. It is more important to be contented with what you have be it landed, condo or HDB based on what you could afford in your time. Similarly, if there is no car, there are alternatives. I still take MRT and bus with my kids when I sent my car for servicing at PML and it was a breeze too.

 

[porky88]

Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans

my kid actually enjoys the bus/mrt more .....
it's a changing world.....

My colleagues who are 10 years older have bought freehold landed which are now out of my reach so I have never considered that as an option. It is more important to be contented with what you have be it landed, condo or HDB based on what you could afford in your time. Similarly, if there is no car, there are alternatives. I still take MRT and bus with my kids when I sent my car for servicing at PML and it was a breeze too.

 

[Shev]

Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans

My colleagues who are 10 years older have bought freehold landed which are now out of my reach so I have never considered that as an option. It is more important to be contented with what you have be it landed, condo or HDB based on what you could afford in your time. Similarly, if there is no car, there are alternatives. I still take MRT and bus with my kids when I sent my car for servicing at PML and it was a breeze too.

If you have taken a loan in any of your previous purchases, it means you pay later and you might have lost your job at that time and may have lost affordability.

Porky say one.

 

[porky88]

Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans

aiyo.. why like that... u don't get the essence of this interesting debate....

If you have taken a loan in any of your previous purchases, it means you pay later and you might have lost your job at that time and may have lost affordability.

Porky say one.

 

[detach8]

Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans

Affordability to me is simple.

Two guiding principles.

If I can pay in full, pay in full.
If the sum is too big and I cannot or rather not pay in full, make sure I can stomach the loss when I sell.

For car, the second point above is usually is the killer.
For property, the story is different altogether. As porky88 describes, it is a different asset class. I don't disagree with him.

 

[brosiss]

Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans

i use sgcarmart to list all cars between $45k-$50k registered in 2008 (with 5 more years to go), there are 25 pages !!!
if the buyer cannot down $20K to get the car, i don't think the buyer is financially ok to have car.
petrol, roadtax, erp, insurance, parking, maintenance, all need money.

we are talking about cash strap family who need car, right?

You are looking at today's price. When Coe plunge, then different stories, 5 year old car may become affordable for the mass, and hopefully there are many pages left in sgcarmart.

 

[brosiss]

Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans

most likely the objective is to slow down buying power ( lesser owner means lesser cars on the road? )











cheeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeers

The previous 70% loan, 7 years should be acceptable but this time really kill the market. And I hope eventually the market not as bad as I think.

 

[Shev]

Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans

aiyo.. why like that... u don't get the essence of this interesting debate....

Originally Posted by porky88
"a lot of people tend to have a problem " paying now" and prefers "paying later"

do they actually know.. their preferred way actually pays more...
unfortunately.. we need such rules to wake up our idea.... sad..."

Having practiced prudence over many years, I have fully paid off my car loan. But I will not write what you have written above because it is not people's will or idea to be in debt. Sometimes it's inevitable.

 

[Red_Bean_Bun]

Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans

your neighbour what happened ?

Sometimes life is just sway.

People talk about paying off car, paying off flat.

For me I got a fucked up deal with my HDB flat. I bought it at a decent price, but I got a fucked up neighbour. Ask me to pay it off, also damn buay gam guan.

 

[porky88]

Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans

my bad if it had caused you any grievance ....

Originally Posted by porky88
"a lot of people tend to have a problem " paying now" and prefers "paying later"

do they actually know.. their preferred way actually pays more...
unfortunately.. we need such rules to wake up our idea.... sad..."

Having practiced prudence over many years, I have fully paid off my car loan. But I will not write what you have written above because it is not people's will or idea to be in debt. Sometimes it's inevitable.

 

[brosiss]

Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans

i am appreciative of the benefits of our system...
but cannot afford means cannot afford what is there to empathise with? empathising with them will not help them... motivating them in the right direction will

i feel sad.. for the fact that tons of people are living well beyond their means!
the reactions to the new policies are a clear demonstration

If one have the opportunity to use $1 to purchase car $100k at interest of 1.88% PA, why not? And this car can be used for work purposes, improve family lifestyle, continue to have better career advancement, eat out more often, emergency use, ease and convenience is cheaper. Having a car definitely speed up economic activities. The intangible benefits outweigh its tangible liability. Having a car would spur one to advance to maintain lifestyle with cars.


Now, ease and convenient became costly and less mobile means lesser opportunities. Therefore this policy again favour the rich. They still have better opportunities.

Gov can do better to segment the restrictions. It is the matter want to do or do not want.

 

[brosiss]

Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans

Porky88 is not wrong , he's being prudent and there is absolutely nothing wrong with it.
NEED and WANT are different.
Family with need transport, not a car.
Go school can take bus or school bus.
Weekend go town can take bus or mrt.
Nothing wrong with squeezing in a bus or mrt.
Isn't the public transport there for those who cannot/dun want a car to use?
Or are the system built to ferry FT instead?

I agreed nothing wrong, just only losing out to those faster by cars and can do many more things by car given the same amount of time in this competitive society.