MAS lifts current car loan curbs for 60 days for some used cars

[I_Hate_Pappies]

Relief at last for second-hand car dealers.

The Monetary Authority of Singapore (MAS) will lift current restrictions on car loans for a period of 60 days for used cars that were part of car dealers’ inventory before the new curbs were introduced on 25 February.

As dealers have up to seven days to register used cars under the Land Transport Authority’s (LTA) Temporary Transfer Scheme (TTS), used cars registered as of 4 March will be eligible for this concession. MAS estimates this pool comprises less than 7,000 cars.

In a statement on Friday, MAS says the move takes into account the distinct conditions in the used car market currently.

It says that the inventory of used cars acquired by dealers at relatively high in-built Certificate of Entitlement (COE) values before the introduction of the financing restrictions has made it particularly challenging for them to adjust to the new market conditions.

MAS adds that demand has also fallen more sharply in the used car market compared to that for new cars and many second-hand car dealers have borne the brunt of the new rulings, particularly those who were holding on to a large supply of used cars when the new rules were announced.

The Ministry of Trade and Industry (MTI) also issued on Friday new regulations to ensure that MAS’ financing curbs on the purchase of cars apply to all entities that finance car purchases, including those that are not regulated by MAS.

MAS says it will continue to monitor developments in the car market COE premiums and will recalibrate the financing restrictions for new and used cars when appropriate.

The new car loan restrictions is expected to be hotly debated when Parliament convenes next Monday.

 

[I_Hate_Pappies]

Why are they still allowing finance company to give high loan?

 

[nycheong]

Why are they still allowing finance company to give high loan?

they back track now. no balls to implement immediately.

 

[ykhuser]

they back track now. no balls to implement immediately.

no body can tahan massive votes lose

woman charter will stay for the next 20 years

how come csj never print banner for abolish woman charter...he alway protest those useless abolish ISA which benefit only a tiny pool of people

 

[looneytan]

how come csj never print banner for abolish woman charter...

the wife said NO

 

[ykhuser]

the wife said NO

great answer

 

[eErotica69]

they back track now. no balls to implement immediately.

Give those second hand car dealer a break.

 

[scroobal]

I always wondered about the political influence of this group. This backtracking happened once before and its was also 2nd car dealers. I just cannot recall which policy. Policy backtracking is very rare. I was told that these guys are low profile and are behind the parallel imports and applied enough pressure on the Govt to force Borneo Motors and other authorised distributors to service their imports.

 

[kukubird58]

I always wondered about the political influence of this group. This backtracking happened once before and its was also 2nd car dealers. I just cannot recall which policy. Policy backtracking is very rare. I was told that these guys are low profile and are behind the parallel imports and applied enough pressure on the Govt to force Borneo Motors and other authorised distributors to service their imports.

hahaha...u are obviously out of depth and trying to ge kiang again.....
i doubt whether u know any used car dealer......
u must be a idiot to think that this group of pple has significant political influence...
and u must be a bigger idiot to think this announcement is policy back-tracking.....
used cars dealers were hit big time and u are talking about massive losses suffered overnight as a result of policy changes....
they appealed and were given a 60 days reprieve (apply to only those cars registered as of 4 Mar 2013) which may help to mitigate the losses....
unlike fat cat developers, many used car dealers are small time businessmen who will go bankrupt very quickly and this reprieve may be be too late for some already.

 

[jw5]

I always wondered about the political influence of this group. This backtracking happened once before and its was also 2nd car dealers. I just cannot recall which policy. Policy backtracking is very rare. I was told that these guys are low profile and are behind the parallel imports and applied enough pressure on the Govt to force Borneo Motors and other authorised distributors to service their imports.

Scroobal, the policy you cannot recall is the one where they decided to cull all those manipulative bastards who were serving them.

Too bad you were one of those they selected to be culled, and now you are so bitter. But at the same time, you are dying to get back into their good books.

That's probably one of the few policies they got right, getting rid of cunning and manipulative, badly brought up snakes like you.

 

[Cerebral]

I must say that the sudden policy by MAS to curb the loan amount was too sudden and it killed a lot of used car dealers. I see this 60 days as a small window for them to offload their cars to avoid mass bankruptcy

 

[nycheong]

give those second hand car dealer a break.

blood sucker deserved it

 

[I_Hate_Pappies]

Seriously, if you compare the loan quantum of a property to a car, loan a car is like peanuts (not GCT's wife type of peanuts).

There are more property transactions going on every fortnight than the number of COEs issued. Give it a couple of weeks more, things will be just fine.

I think curbing finance companies' high loan should be the way to go.

As for the car dealers, may i ask them "Who did they voted for"?

 

[yinyang]

MAS to curb the loan amount was too sudden and it killed a lot of used car dealers. 60 days as a small window for them to offload their cars to avoid mass bankruptcy

Agree. See for what it is, not even a reprieve but only a 2 month pain killer relief. Dead duck until a new 'normal' in used car trade

 

[eatshitndie]

Agree. See for what it is, not even a reprieve but only a 2 month pain killer relief. Dead duck until a new 'normal' in used car trade

the osim matriarch has relations to the used car business. sibling is very wealthy because of it. it shows the used car trade in sg is an extremely lucrative business until mas decided to play punk with it. obviously the banks are heavily involved. otherwise, mas will be reluctant to provide relief.

 

[ykhuser]

I must say that the sudden policy by MAS to curb the loan amount was too sudden and it killed a lot of used car dealers. I see this 60 days as a small window for them to offload their cars to avoid mass bankruptcy

60 days can do what?
i must say very unfair to them

 

[sleaguepunter]

pity used car salesman?

wahahahaha........

 

[ykhuser]

pity used car salesman?

wahahahaha........

no need to pity saleman.they can continue their con job at other company

 

[Cestbon]

Why are they still allowing finance company to give high loan?

they back track now. no balls to implement immediately.

no body can tahan massive votes lose

woman charter will stay for the next 20 years

how come csj never print banner for abolish woman charter...he alway protest those useless abolish ISA which benefit only a tiny pool of people

Lift or not no big deal because there is finance company willing to 90% of the purchase. It just some stupid sinkie dont know bcos follow black n white also dont buy car , if really want to buy car the car dealer will tell them there another option finance company.

 

[GoldenDragon]

Expect more than half of these businesses to close shop. A friend of mine in this business told me he is stuck with about 20 cars. Worse case scenario, declare bankrupt.