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| In SG : Only the rich will buy expensive cars and others by commercial vehicles. motorcycles and public transport! |Pics courtesy of Creative Studio| |
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Latest Cars Restrictions in Singapore :
Shockingly today although it is not that surprised that the Singapore government would such measures to keep the quantity of cars on this small island. The Monetary Authority of Singapore (MAS) today, imposed restrictions on motor vehicle loans effective TODAY!, a move that disappoint many in the lower-mid income earners for the ownership of owning a car may very well be quite an uphill task as compared to the previous system where $0 Downpayments Drive-Away scheme and a maximum 10 years loan scheme.
Clearly explained by MAS, the move may check the rising cost of owning a car in the city-state. Well, that was what I just said above!
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The Changes :
1. Consumers are now limited to borrowing up to 60 per cent of the price of vehicles with open market values (OMV) of less than $20,000.
-Means to say: You need to put an upfront of $40% for their downpayment!
2. Should the OMV exceed $20,000, the maximum loan allowed has been lowered to 50 per cent.
- Means to say: If you intent on buying bigger/luxury cars, you have to belong to the filthy rich band because you need to pay HALF of the car price as your downpayment upfront!
3. MAS has also restricted the tenure for a vehicle loan to five years, compared to the current length of up to ten years.
-Means to say: You definitely going to pay more monthly repayments amount, no easy cruise for those who are tight of budget! Either you take the public transport or you starve your family out to death by owning the car!
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MAS said in a statement on Monday 25/2/2013:
The moves are designed to breed prudence and to safeguard consumers from “over-extending themselves in this prolonged environment of very low interest rates”, the
Commercial vehicles and motorcycles are exempt from the restrictions.
The move of the Singapore central bank is expected to dampen demand for cars and hence the demand for Certificates of Entitlement, prices of which have hit record highs over the past year.
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