MAS Imposes Financing Restrictions on Motor Vehicle Loans

[porky88]

Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans

no scared...
see only ok... no touchy touchy.... also some say let u check IC leh....

I want to click ez141.com, but I scared.

/wobbles honest.

 

[detach8]

Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans

60 over pages of healthy discussions with zero chee-hong factor = passion = RESPECT !!!

I think it is pointless arguing on the lines of haves against have-nots. There will be multiple perspectives ... BLAH BLAH BLAH

Somebody give this man a beer.

So did your professor approve your thesis?

 

[kenntona]

Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans

Somebody give this man a beer. So did your professor approve your thesis?

Professor? You mean Mandela? I am submitting that for Nobel Peas Prize.

 

[er1cw]

Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans

what restriction??

 

[MW]

Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans

Hi, u can only buy M cars from now on...

 

[Mockngbrd]

Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans

Sians...

Authorities looking to close loopholes in MAS restrictions | TODAYonline

Authorities looking to close loopholes in MAS restrictions

SINGAPORE — Two days after the Monetary Authority of Singapore (MAS) imposed drastic financing restrictions on car loans, some finance companies which are not regulated by the MAS are still offering up to a full loan for prospective buyers — taking advantage of loopholes that the authorities are moving to address.
Meanwhile, worried motor traders were also coming together to think of a collective response to the measures which they believe will adversely affect business. Yesterday, the Singapore Vehicle Traders Association (SVTA) held an emergency meeting with its members. After the meeting, the association sent in an appeal to the MAS and the Ministry of Trade and Industry (MTI), asking the authorities not to apply the new measures “so strictly” to loans for buying used cars.

SVTA President Neo Tiam Ting said: “Used cars are already in the system, there is no need to tighten their supply if one of the reasons for this move is to curb the high COE (Certificate of Entitlement) premiums.”
On Monday, the MAS announced that tenures of loans for motor vehicles — except motorcycles and commercial vehicles — will be capped at five years, with the maximum loan amount pegged to 50 or 60 per cent of the vehicle’s price, depending on the Open Market Value.
The MAS measures — which took effect on Tuesday — have not stopped some car dealers from trying to skirt the restrictions. For example, a car dealer advertised in The Straits Times that it was still offering “100% loan” for a “limited” period.

When contacted by TODAY, the car dealer said the full loans would be offered as “personal loans” from a credit company. Declining to reveal the name of the credit company, he added: “(The company) told me that they consulted the MAS and that they’re not under the new restrictions.”

The MAS had explained that the restrictions were “necessary to encourage financial prudence among buyers of motor vehicles ... in this prolonged environment of very low interest rates, there is greater risk of buyers over-extending themselves on motor vehicles”.

These restrictions, however, do not apply to finance companies or credit houses that are not regulated by the MAS but may still finance motor vehicle purchases. These entities will only be subject to the measures if they obtain credit facilities from regulated financial institutions such as banks.

TODAY understands that the MAS is aware of the loophole and as part of the Government’s regular review processes, it is working with relevant agencies such as the MTI to ensure that regulations are effective in light of the changes.

An industry insider said that, in the meanwhile, more prospective car buyers would turn to these unregulated finance companies or credit houses.

He said: “It is unfair to the banks ... but that may be the only option for buyers who need cars.”
Mr Neo, however, pointed out that these firms “don’t have the muscle to take over the quantity of loans that the banks have been dealing with”.

Noting that the car loan market is a “billion-dollar industry”, Mr Neo said it would not be sustainable for the non-MAS regulated companies to keep offering large loans with long tenures.

These entities typically offer loans out of their coffers and charge interest rates between 0.5 per cent and 1 per cent higher than banks. Bank interest rates for car loans are around 1.88 per cent for new cars and 2.28 per cent for used cars.

While prospective car buyers could also theoretically obtain loans from licensed moneylenders, the Registry of Moneylenders said in response to TODAY’s queries that currently, it is “not common” for these lenders to offer secured loans such as motor vehicle loans. Nevertheless, the registry said that it is working with the MAS to “extend the restrictions on motor vehicle loans to licensed moneylenders”.

Moneylenders contacted by TODAY said that they were unable to fully fill the gap left behind by banks.
A spokesman for one of the firms said: “We can not loan that sort of money. What if the person defaults?”
Another noted that under existing regulations for licensed moneylenders, they can only offer loan amounts up to four times a borrower’s salary.

Mr David Poh, President of the Moneylender’s Association of Singapore, felt that the industry could possibly get some business from prospective car buyers looking for extra cash to foot downpayments, for instance.
Stressing that it is premature to predict the impact on the licensed moneylending industry, he said: “We might expect some increase (in business) ... If the person is a qualified customer then it may be possible. But whatever the case, we believe that if a person really needs money, they will find a source to tap on to finance the remaining amounts that they may need (to buy a car).”

Mountbatten Member of Parliament Lim Biow Chuan, who is also President of the Consumers Association of Singapore, said he could understand why potential car buyers were “looking for alternatives as the cut by MAS is a bit drastic”.

He said: “But if we accept that what the Government has done in terms of the policy change is to curb excessive borrowing, then this is a loophole that we have to plug. If we do not, it will negate what MAS is trying to do.”

 

[porky88]

Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans

the reporter a bit off liao... banks adjusted interest rates.. but article still quotes 1.88%...

the ruling party tend to use a parang approach rather than a surgical knife... let's see

 

[Jason8822]

Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans

i wonder how many car dealer are gonna close shop few months down the road

 

[detach8]

Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans

actually with such an industry reaction I think MAS may change the rules sooner than I suspect.

May go down 10% on the downpayments.

 

[porky88]

Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans

down 10%.. might well don't change...
think.. ideally.. 70%.. over 7 years.. best compromise... but then again.. impact may not reach their target objective...

actually with such an industry reaction I think MAS may change the rules sooner than I suspect.

May go down 10% on the downpayments.

 

[arsenal62]

Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans

??? Why kpkb ???

Donkey years back since Dr Hong Hai suggested the COE system to control Sgp car population (nothing to do with MAS) and the knn shortie Marlboro Tan eyes see $$$ hence never a intention to do it correctly. Siao arh COE is cash cow leh....1991 the COE system kick-in and $$$ flow in till no day no night so 1994 all the million $$ Mini$tar were created (rob so much $$$ liao so must kee koolie kang chor chor).
Then comes the ERP and the rest history liao. Mind you, 1994 COE also hit more than $100k and life goes on.......that time FM is tng lang so more chin-chye and make a little bit can liao he got "leng sim".

Now no use to talk one...you people (Not me cos me Aljunied GRC one hor) chose to have one kiat leng kia FM so you guys (Especially kaki lang - Singaporeans) sure kenna jialat jialat one....ever heard of "kiat leng kia pu-tor, nah sng nah bo"? You wanna do math and sum with kiat leng kia then I sugguest you go jump down from the top floor of MAS building.

PS: Above TCSS purely joking only hor ain't racist.. if feel offended then very paiseh.

 

[porky88]

Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans

time to chill .. chance to win a pair of Marten speakers!!!

http://martencompetition.com/?&utm_source=newsletter&utm_medium=email&utm_campaign=Win_the_new_Django_L_-_Reminder

i bro... thank me....

disclaimer: i am not related or part of Marten and it's distribution network... this is purely for the bros here that no money to buy speakers....

 

[MW]

Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans

??? Why kpkb ???

Donkey years back since Dr Hong Hai suggested the COE system to control Sgp car population (nothing to do with MAS) and the knn shortie Marlboro Tan eyes see $$$ hence never a intention to do it correctly. Siao arh COE is cash cow leh....1991 the COE system kick-in and $$$ flow in till no day no night so 1994 all the million $$ Mini$tar were created (rob so much $$$ liao so must kee koolie kang chor chor).
Then comes the ERP and the rest history liao. Mind you, 1994 COE also hit more than $100k and life goes on.......that time FM is tng lang so more chin-chye and make a little bit can liao he got "leng sim".

Now no use to talk one...you people (Not me cos me Aljunied GRC one hor) chose to have one kiat leng kia FM so you guys (Especially kaki lang - Singaporeans) sure kenna jialat jialat one....ever heard of "kiat leng kia pu-tor, nah sng nah bo"? You wanna do math and sum with kiat leng kia then I sugguest you go jump down from the top floor of MAS building.

PS: Above TCSS purely joking only hor ain't racist.. if feel offended then very paiseh.

Admin please ban him. He say COE will go above 100k...cb kia

 

[zorro]

Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans

I tried using google translate and it came out all $&@&'knnccb&&@@@!

 

[Jason8822]

Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans

i tried using google translate and it came out all $&@&'knnccb&&@@@!

wonder if aresnel62 tried reading his post into siri and what respnd will he get *&%^#^*&&

 

[MW]

Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans

wonder if aresnel62 tried reading his post into siri and what respnd will he get *&%^#^*&&

U try on Samsung Voice, and the female voice will reply "Yah and up yours too"

 

[kenntona]

Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans

I have long noticed there is a huge generation gap between Arsenal62 and me.

 

[porky88]

Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans

woooo.... got GAP.... me likes.....

 

[Jason8822]

Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans

woooo.... got GAP.... me likes.....

front or rear ?

 

[porky88]

Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans

for me to know... for you to find out... woohoo...

front or rear ?