MAS Imposes Financing Restrictions on Motor Vehicle Loans
- Thread starter C3P0
- Start date
Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans
McKinsey defined the "premium" segment in China as cars costing from 200,000 yuan to 1.2 million yuan ($32,000 to $190,000), excluding "ultra-luxury" cars commanding even higher prices.
link: China to surpass US as top luxury car market: study - Yahoo! News Singapore
moi think its USD ba ... Huat Ahh..... :laughlik:
McKinsey defined the "premium" segment in China as cars costing from 200,000 yuan to 1.2 million yuan ($32,000 to $190,000), excluding "ultra-luxury" cars commanding even higher prices.
link: China to surpass US as top luxury car market: study - Yahoo! News Singapore
moi think its USD ba ... Huat Ahh..... :laughlik:
Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans
This morning a friend in the used car biz SMSed me :
"Bro, can still arrange full loan. Time to buy the M3 with full loan and tell people you put half cash down."
Idea. Sart.
I did not say Oilman looks like Ng Boon Gay.
This morning a friend in the used car biz SMSed me :
"Bro, can still arrange full loan. Time to buy the M3 with full loan and tell people you put half cash down."
Idea. Sart.
I did not say Oilman looks like Ng Boon Gay.
Dinosaur hunter
Well-Known Member
Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans
It's a pain for Ken to squeeze into a M3. M5 is more suitable for him.
MW;963831 said:
It's a pain for Ken to squeeze into a M3. M5 is more suitable for him.
C3P0
Well-Known Member
Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans
In a move to close loopholes in the new financing restrictions, the Government is set to review the Hire Purchase Act.
In a move to close loopholes in the new financing restrictions announced last week, the Government is looking to review the Hire Purchase Act.
When approached by The Straits Times, the Ministry of Trade and Industry (MTI), which administers the 44-year old Act, confirmed that a review was under way.
Although banks and finance houses are regulated by MAS, some other lenders that include credit companies and financiers, such as BMW Financial Services and Daimler Financial Services, are not. Instead, they are regulated, in part, by the Hire Purchase Act.
Currently, the Act covers car loans of up to $55,000, before Certificate Of Entitlement (COE), so essentially the clause leaves loans which exceed that amount in a twilight zone.
Some observers expect the review to address this aspect of the Act. "They could either remove the quantum or raise it high enough to cover all or most car loans, or they could simply specify that all vehicle loans under the Act should be limited to 50 percent or 60 percent of the purchase price," said a lawyer familiar with the Act.
MTI did not have details of the review, but it is understood that changes will take some time, as setting new laws will most likely be involved.
There were some mixed reactions to the pending review. Non-regulated lenders by the MAS, said MTI should retain its 'light touch' on the Act. Others said that loopholes should be closed to ensure the loan restrictions get the desired results - a cooling of the car market.
Source: Loopholes to close in new financing restrictions
In a move to close loopholes in the new financing restrictions, the Government is set to review the Hire Purchase Act.
In a move to close loopholes in the new financing restrictions announced last week, the Government is looking to review the Hire Purchase Act.
When approached by The Straits Times, the Ministry of Trade and Industry (MTI), which administers the 44-year old Act, confirmed that a review was under way.
Although banks and finance houses are regulated by MAS, some other lenders that include credit companies and financiers, such as BMW Financial Services and Daimler Financial Services, are not. Instead, they are regulated, in part, by the Hire Purchase Act.
Currently, the Act covers car loans of up to $55,000, before Certificate Of Entitlement (COE), so essentially the clause leaves loans which exceed that amount in a twilight zone.
Some observers expect the review to address this aspect of the Act. "They could either remove the quantum or raise it high enough to cover all or most car loans, or they could simply specify that all vehicle loans under the Act should be limited to 50 percent or 60 percent of the purchase price," said a lawyer familiar with the Act.
MTI did not have details of the review, but it is understood that changes will take some time, as setting new laws will most likely be involved.
There were some mixed reactions to the pending review. Non-regulated lenders by the MAS, said MTI should retain its 'light touch' on the Act. Others said that loopholes should be closed to ensure the loan restrictions get the desired results - a cooling of the car market.
Source: Loopholes to close in new financing restrictions
Soifon
Well-Known Member
Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans
SINGAPORE: Several MPs have raised their concerns in Parliament over the latest changes to car ownership policies.
Under the Monetary Authority of Singapore (MAS) car loan curbs, buyers have a maximum of five years to their service car loans.
They also have to foot a downpayment of 40 per cent or more for a new vehicle.
The changes, they say, not only have an effect on second-hand car dealers but also large families.
Mr Pritam Singh, MP for Aljunied GRC, said: "It would be imperative for the government to look at possible tweaks to the system if indeed larger families and families that include disabled singaporeans or elderly parents are genuinely affected, as the effects of the new policy kicks in over next few months.
"One specific way could be to raise the LTV ratio for cars back to 70 per cent as it was previously, but only for families with two or more children so as to buttress and incentivise the government's efforts to raise TFR (Total Fertility Rate).
Dr Lee Bee Wah, MP for Nee Soon GRC, said: "With regards to the restriction on private car loans, there has been plenty of unhappiness from the grounds, from existing car owners to second-hand car dealers.
"Recently, I received a very long email from a resident of mine. He told me that he has been a second-hand car dealer for 17 years. He started off as a salesman after ROD, and he worked his way up and he is currently the CEO. He has 235 cars in hand and 50 staff, and he is crying out for help. He told me he is going to sell his house but he worries he cannot save his business."
"As I read his email, my heart beats with his. Again, the change is so drastic and immediate that some second-hand car dealers like my resident will have to fold up their businesses. Is this cut so critical and so market sensitive that the Government cannot give any advance notice?"
- CNA
SINGAPORE: Several MPs have raised their concerns in Parliament over the latest changes to car ownership policies.
Under the Monetary Authority of Singapore (MAS) car loan curbs, buyers have a maximum of five years to their service car loans.
They also have to foot a downpayment of 40 per cent or more for a new vehicle.
The changes, they say, not only have an effect on second-hand car dealers but also large families.
Mr Pritam Singh, MP for Aljunied GRC, said: "It would be imperative for the government to look at possible tweaks to the system if indeed larger families and families that include disabled singaporeans or elderly parents are genuinely affected, as the effects of the new policy kicks in over next few months.
"One specific way could be to raise the LTV ratio for cars back to 70 per cent as it was previously, but only for families with two or more children so as to buttress and incentivise the government's efforts to raise TFR (Total Fertility Rate).
Dr Lee Bee Wah, MP for Nee Soon GRC, said: "With regards to the restriction on private car loans, there has been plenty of unhappiness from the grounds, from existing car owners to second-hand car dealers.
"Recently, I received a very long email from a resident of mine. He told me that he has been a second-hand car dealer for 17 years. He started off as a salesman after ROD, and he worked his way up and he is currently the CEO. He has 235 cars in hand and 50 staff, and he is crying out for help. He told me he is going to sell his house but he worries he cannot save his business."
"As I read his email, my heart beats with his. Again, the change is so drastic and immediate that some second-hand car dealers like my resident will have to fold up their businesses. Is this cut so critical and so market sensitive that the Government cannot give any advance notice?"
- CNA
wt_know
Well-Known Member
Re: MAS Imposes Financing Restrictions on Motor Vehicle Loans
siang ar? keechiu leh ... got 235 cars and 50 staff sure not peanut right ... cannot handle biz?
i wonder will MAS remove restriction on used car or revert to 70% 7 years ... like that sibei prata flipping leh
one of the merit of sg govt is no flip-flopping policies ... will they maintain that?
"Recently, I received a very long email from a resident of mine. He told me that he has been a second-hand car dealer for 17 years. He started off as a salesman after ROD, and he worked his way up and he is currently the CEO. He has 235 cars in hand and 50 staff, and he is crying out for help. He told me he is going to sell his house but he worries he cannot save his business."
siang ar? keechiu leh ... got 235 cars and 50 staff sure not peanut right ... cannot handle biz?
i wonder will MAS remove restriction on used car or revert to 70% 7 years ... like that sibei prata flipping leh
one of the merit of sg govt is no flip-flopping policies ... will they maintain that?
"Recently, I received a very long email from a resident of mine. He told me that he has been a second-hand car dealer for 17 years. He started off as a salesman after ROD, and he worked his way up and he is currently the CEO. He has 235 cars in hand and 50 staff, and he is crying out for help. He told me he is going to sell his house but he worries he cannot save his business."
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