MAS ditches 30% downpayment ruling for buying new cars
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MAS ditches 30% downpayment ruling for buying new cars
FROM Thursday, consumers can well walk into any car showroom, arrange for a loan and drive away in a new set of wheels without forking out a single cent in cash.
This follows from the Monetary Authority of Singapore's (MAS) decision to do away with a six-year old ruling in which buyers must pay 30 per cent downpayment in cash.
The policy change is expected to spur demand for new cars. After all, with price tags ranging from S$60,000 to over S$1 million, car buyers are looking at 'saving' between S$18,000 and S$300,000 in upfront fees.
And the car dealers know it. Some are expecting the crowds to throng the showrooms this weekend.
Mr Michael Wong, the president of the Motor Traders Association, added: 'I expect renewed interest in new cars, with finance companies and banks coming up with joint promotions to boost sales.
'This move will make it a lot easier for people to buy a new car, as they don't need cash standing by.'
But used-car salesmen will be unhappy.
Mr Alex Lee, 27, a car dealer at JDG Motor Trading in Kallang, said: 'This is bad news. It'll definitely make my business even worse. Car prices are so low already, now people will want new cars and not used cars.'
With the expected rise in demand for new cars, industry players are expecting certificate of entitlement (COE) prices to go up - reversing months of decline.
And if demand for new cars is sustained, car prices could also follow suit. Mr David Tay, general manager of Hyundai distributor Komoco Motors, said: 'With the focus on new cars and because of the limited number of COEs, this may cause car prices to rise.'
The rethink in the car loans policy, explained the MAS on Wednesday, was in line with its shift from a 'one-size-fits-all approach to a risk-focused approach'.
http://straitstimes.asia1.com.sg/latest/story/0,4390,167695,00.html? -
Shiok!!!!!!!!!!!!!!!!!
No more downpayment anymore..
So who's getting you car tomorrow?
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oh wait....... no cash left......
have to settle for sbs and mrt for the time being.
i rather they scrapped the inane idea of friggin COEs. -
i think that's impossible..Originally posted by JLennon:
oh wait....... no cash left......
have to settle for sbs and mrt for the time being.
i rather they scrapped the inane idea of friggin COEs.
They might be increasing the price of the COE and the price of car..
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Ya... To increase sales.. they did tat...Originally posted by kohanson:i think that's impossible..
They might be increasing the price of the COE and the price of car..
When sales increase..... the number of COEs needed will increase thus to ensure a COE, one tend to pay more....
So damn smart...
When COE increase.... Price increase.. Loan is bigger.... Interest increase too. Bank EARN $$$! -
Den you know what, ERP Increase to cut down no. of cars on the road.. what a tactic..
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i fear for those 2nd hand car dealers future.......well nvm, they are blood suckers anyway!
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their sales is definitely going to go down...Originally posted by kangkang:i fear for those 2nd hand car dealers future.......well nvm, they are blood suckers anyway! -
haha..of cos increase lah, u think our government stupid one ar?? their well known tactic is give u 50¢ but take back $1 from u!Originally posted by edLow:Ya... To increase sales.. they did tat...
When sales increase..... the number of COEs needed will increase thus to ensure a COE, one tend to pay more....
So damn smart...
When COE increase.... Price increase.. Loan is bigger.... Interest increase too. Bank EARN $$$! -
yah..nevermind...get rid of these blood suckers anyway!Originally posted by kohanson:their sales is definitely going to go down... -
but i still got no $$$ to buy car leh
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No ppl selling 2nd cars...... Den everybody scrape their 1st hand car after 2 or 3 yrs meh? hahahaha! Then my dad sure suffer alots.. esp he like to change car every 2 or 3 yrs.... haha!
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make your life debt free...
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i duno wad all tis but then even if w/o tis 30% but in future dat mean u still hv to pay more rite?
so if nw u reli 1 2 get a new car hw muc will dat b? juz a normal simple car... -
it just mean that u dun hav to fork out upfront the 30% amount. Now a car can cost abt $50k-$60kOriginally posted by Si|verGer:i duno wad all tis but then even if w/o tis 30% but in future dat mean u still hv to pay more rite?
so if nw u reli 1 2 get a new car hw muc will dat b? juz a normal simple car...
wat car u looking 4? I tot u still studying? -
ya but then each mth hv to pay hw muc 4 the car? ya mi studying....Originally posted by sgboy2004:it just mean that u dun hav to fork out upfront the 30% amount. Now a car can cost abt $50k-$60k
wat car u looking 4? I tot u still studying? -
it can go up to >$1000 per mth. Some of mi friend like tat too, some $700 plus...no joke lehOriginally posted by Si|verGer:ya but then each mth hv to pay hw muc 4 the car? ya mi studying.... -
u mean after they implement the new rule noned pay 30% ezit?Originally posted by sgboy2004:it can go up to >$1000 per mth. Some of mi friend like tat too, some $700 plus...no joke leh
it v $$$ wor...like dat can drink water nia no ned eat liao -
The old rule is u must pay at least 30% of the car price as the down payment and the left over 70% u spread it apart n pay it finish within 7 yrs (max) or shorter depending on how long u wan to spread.
The new rule is u need not pay 30% as download payment (donno how much u pay for the downpayment now). N now u can extend ur loan more than 7 yrs... But the longer u extend.. the interest will be higher and more siong. -
those who buy the car without downpayment are looking at short term benefits which are not feasible in my view...
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Yah.....they will soon know how "SHIOK" it is to maintain a car..... There will be an increase of cars being towed away in the future.Originally posted by kangkang:those who buy the car without downpayment are looking at short term benefits which are not feasible in my view...
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Originally posted by BearBear®:
hmm....actually this new policy quite a good way to spike up the gloomy car trade business..everyone rush to buy new cars -> jack up prices ->thus new car become expensive -> not so well off people will turn to 2nd hand cars...
Yah.....they will soon know how [b]"SHIOK" it is to maintain a car..... There will be an increase of cars being towed away in the future. [/b]
a win-win situation for all car dealers...f**k it...
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Originally posted by BearBear®:
yah, it is 10 years of paying if i'm not wrong for the new instalment plan .. even though for a car you pay around $650/mth for a 70,000 car, you still have to pay for fuel ( > $200/mth), insurance ( i think >$800/annum), car park(>$65/mth), and parking in other places, you need coupons.. adds up to at least 1000 per mth..
Yah.....they will soon know how [b]"SHIOK" it is to maintain a car..... There will be an increase of cars being towed away in the future. [/b]