MAS Imposes Financing Restrictions on Motor Vehicle Loans
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Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans
total amount of car loan disburse for that month/no of cars that took loan .. then average over 12 months?
or is it divided by no of cars registered (used and new) for that month?
total amount of car loan disburse for that month/no of cars that took loan .. then average over 12 months?
or is it divided by no of cars registered (used and new) for that month?
Samuel Tan See Teng;962013 said:
SpoiltBrat
Well-Known Member
Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans
ST reported that a 316 will incur only S$5,210 more for ARF and a 520 will incur S$8,526 more. So, if the COE drop is 10% or more than these cars can possibly be cheaper even if we factor in a higher interest charge? wonder what it would be like for a 528?
ST reported that a 316 will incur only S$5,210 more for ARF and a 520 will incur S$8,526 more. So, if the COE drop is 10% or more than these cars can possibly be cheaper even if we factor in a higher interest charge? wonder what it would be like for a 528?
yellowhandman
Well-Known Member
Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans
I think it means total value of outstanding loans, divided by number of loans.
E.g. If the total of all outstanding auto loans in Feb 2013 is $10m, and there are 100 outstanding auto loans, then the monthly average loan is $10m divided by 100 = $100,000. In other words, the average outstanding amount is $100,000 per loan.
porky88;962009 said:
I think it means total value of outstanding loans, divided by number of loans.
E.g. If the total of all outstanding auto loans in Feb 2013 is $10m, and there are 100 outstanding auto loans, then the monthly average loan is $10m divided by 100 = $100,000. In other words, the average outstanding amount is $100,000 per loan.
yellowhandman
Well-Known Member
Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans
I think it means total value of outstanding loans, divided by number of loans.
E.g. If the total of all outstanding auto loans in Feb 2013 is $10m, and there are 100 outstanding auto loans, then the monthly average loan is $10m divided by 100 = $100,000. In other words, the average outstanding amount is $100,000 per loan.
porky88;962009 said:
I think it means total value of outstanding loans, divided by number of loans.
E.g. If the total of all outstanding auto loans in Feb 2013 is $10m, and there are 100 outstanding auto loans, then the monthly average loan is $10m divided by 100 = $100,000. In other words, the average outstanding amount is $100,000 per loan.
Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans
Haha we don't need ST to tell us that, it's simple maths.
The ARF increase is small especially for BMWs, since the OMV is pathetically low (compared with Mercedes etc) and yes will probably be covered by the drop in COE premiums... from April onwards, that's my guess. It's the cash upfront that will unsettle some people and of course, the significantly higher interest rate.
So to certain buyers the irony is cars may become cheaper but not more affordable.
SpoiltBrat;962023 said:
Haha we don't need ST to tell us that, it's simple maths.
The ARF increase is small especially for BMWs, since the OMV is pathetically low (compared with Mercedes etc) and yes will probably be covered by the drop in COE premiums... from April onwards, that's my guess. It's the cash upfront that will unsettle some people and of course, the significantly higher interest rate.
So to certain buyers the irony is cars may become cheaper but not more affordable.
brosiss
Well-Known Member
Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans
Yes, sounds logical and I think you are right. You work in the bank or financial institution?
The value went from $82,371 to $88,517, which means car getting more expensive, right?
But the default rate drop wohh.. from 2.76% to 2.53%.
yellowhandman;962025 said:
Yes, sounds logical and I think you are right. You work in the bank or financial institution?
The value went from $82,371 to $88,517, which means car getting more expensive, right?
But the default rate drop wohh.. from 2.76% to 2.53%.
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yellowhandman
Well-Known Member
Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans
Haha, no, I don't work in a bank or financial institution. Just a guess.
As for the default rate - I'm not sure anything can be read into it. If a lot of these loans were taken up in the last couple of years, when interest rates have been extremely low, the borrowers probably factored in what they could afford NOW. But the danger is that, if there are many young people who are highly leveraged, a large number could default at the same time if something major happens to the economy.
Having said that, I think it's pretty obvious that the real target of the MAS policy decision was to force car prices down, which is why it was announced at the same time as the ARF changes. But MAS can't say that it made the decision in order to bring down car prices, as car prices aren't under its regulatory purview.
Samuel Tan See Teng;962038 said:
Haha, no, I don't work in a bank or financial institution. Just a guess.
As for the default rate - I'm not sure anything can be read into it. If a lot of these loans were taken up in the last couple of years, when interest rates have been extremely low, the borrowers probably factored in what they could afford NOW. But the danger is that, if there are many young people who are highly leveraged, a large number could default at the same time if something major happens to the economy.
Having said that, I think it's pretty obvious that the real target of the MAS policy decision was to force car prices down, which is why it was announced at the same time as the ARF changes. But MAS can't say that it made the decision in order to bring down car prices, as car prices aren't under its regulatory purview.
Darth Vader
Well-Known Member
Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans
average car loan each new car or old car buyer take.
average car loan each new car or old car buyer take.
porky88;962009 said:
