in a rising coe/car price mkt, buyers were encouraged to buy n sell quickly coz dealers were pushing up coe AND sales margins hidden in between, so trade in values were encouraging. Now is complete opposite, falling trade in values and coe = a possible unwinding until coe prices stabilize together w trade in values.
Reminds me of how the US subprime bubble burst. Loans were given >100% of value, then loans were tightened later on & that started the great unwind.
Agree it is quite a good deal specific to the interest... it is lower than other financial entity and banks for 100% (upto 10yrs) and 40-50% (upto 5yrs) loan respectively!
And the profits are pocket by credit co who are playing bank offering 100% loan. Surely the banks will pressure MAS to step in. But again this morning papers reported used car dealers cant close deal even after lowering price by 20%. Guess everyone's watching and waiting.
Banks pessure the MAS to step in ? Joking or what.......more money is to be made .....
Don't be surprised if there is an increase in commercial loans to the ADs .... Like loan syndication and a bit of swap.
naan1974;966443 said:
And the profits are pocket by credit co who are playing bank offering 100% loan. Surely the banks will pressure MAS to step in. But again this morning papers reported used car dealers cant close deal even after lowering price by 20%. Guess everyone's watching and waiting.
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