Singapore impose Max 50% loan for Motor Vehicle

[kcng]

MAS Imposes Financing Restrictions on Motor Vehicle Loans

Singapore impose 50% loan for all auto vehicle and max tenure is 5 years.

So Malaysians, you can have loan up to 9 or 10 years at 90% loan (some even full loan).
Still want to bitch about it?

 

[Zeroshift]

Wow! First, they increase the COE till sky rocket price. Now, they are only allowing people to take only 50% loan...

Normal working citizen in Singapore really won't be able to afford a car there already man...

 

[papagoines]

at least they got proper public transport....

not to say this restriction is fair la... kesian to lower income group too

 

[arturo]

the restriction sux...but they have alternatives.

i guess its the price to pay for order and less traffic jams.

 

[vr2turbo]

MAS Imposes Financing Restrictions on Motor Vehicle Loans

Singapore impose 50% loan for all auto vehicle and max tenure is 5 years.

So Malaysians, you can have loan up to 9 or 10 years at 90% loan (some even full loan).
Still want to bitch about it?

In MY they want P company to survive mah! but 9 years loan you think no need pay interest ah? Car Loan interest is up front, means x 9 times, means buyer pay until fulat or die paying....

 

[arturo]

exactly VR2...

higher down payment means less interest wasted...

 

[YYC]

Actually it's a good thing to reduce the loan margin. Good for everybody. Consumer buys car based on ability, no money don't buy car and not being a bank's slave. Bank has less exposure. Don't agree meh? Look, how many people here bought car on 100% loan? Chances are most of them don't have the money in the first place. Somehow car salespersons say that's okay, you give them IC and payslip they give you the car, that's funny. If they stopped paying halfway, that's NPL for the bank, bad news for both party. Debt recovery? Auction it off bank actually doesn't make money. The poor fella being without car now back to square taking buses cum being in the CRISS CTOS hall of fame. So the only beneficiary here is the government, car dealer and the salesperson.

 

[escksu]

at least they got proper public transport....

not to say this restriction is fair la... kesian to lower income group too

SG don't have proper public transport pls.... IT SUCKS..... SG public transport SUCKS BIG TIME..... Crappy train, crappy bus.

Always breakdown.... useless train service.......

---------- Post added at 05:59 PM ---------- 6 hour anti-bump limit - Previous post was at 05:57 PM ----------

Actually it's a good thing to reduce the loan margin. Good for everybody. Consumer buys car based on ability, no money don't buy car and not being a bank's slave. Bank has less exposure. Don't agree meh? Look, how many people here bought car on 100% loan? Chances are most of them don't have the money in the first place. Somehow car salespersons say that's okay, you give them IC and payslip they give you the car, that's funny. If they stopped paying halfway, that's NPL for the bank, bad news for both party. Debt recovery? Auction it off bank actually doesn't make money. The poor fella being without car now back to square taking buses cum being in the CRISS CTOS hall of fame. So the only beneficiary here is the government, car dealer and the salesperson.

The problem here is that car is way way too expensive to begin with.... A 1.3L Proton Saga Cost over SGD100K..... Madness.... Now you have to pay $50K cash to buy a Proton Saga.....And still need to loan 50K......

Thank you PAP gahment...... I want to migrate to JB to live.

 

[ixeo]

The island is only so big, you can only put so many cars on the road. If everybody own cars the island will turn into a giant parking lot.

 

[PocketRocket]

 

[6UE5t]

SG don't have proper public transport pls.... IT SUCKS..... SG public transport SUCKS BIG TIME..... Crappy train, crappy bus.

Always breakdown.... useless train service.......

---------- Post added at 05:59 PM ---------- 6 hour anti-bump limit - Previous post was at 05:57 PM ----------



The problem here is that car is way way too expensive to begin with.... A 1.3L Proton Saga Cost over SGD100K..... Madness.... Now you have to pay $50K cash to buy a Proton Saga.....And still need to loan 50K......

Thank you PAP gahment...... I want to migrate to JB to live.

Well Sing public transport is still miles above any countries in this region already! You should try public transport in Indonesia then you know the true meaning of suck!
Actually I kinda agree to have max loan limit reduced to 50% but the car prices should be lowered as well by maybe 40-50%. I wish they do that here in Malaysia. :)

 

[vr2turbo]

Actually it's a good thing to reduce the loan margin. Good for everybody. Consumer buys car based on ability, no money don't buy car and not being a bank's slave. Bank has less exposure. Don't agree meh? Look, how many people here bought car on 100% loan? Chances are most of them don't have the money in the first place. Somehow car salespersons say that's okay, you give them IC and payslip they give you the car, that's funny. If they stopped paying halfway, that's NPL for the bank, bad news for both party. Debt recovery? Auction it off bank actually doesn't make money. The poor fella being without car now back to square taking buses cum being in the CRISS CTOS hall of fame. So the only beneficiary here is the government, car dealer and the salesperson.

Only if not many default in their loan. Like the financial crisis back them, the bank take the cars also have to find parking space for them....
The poor fella also not back to square one but have to take a few steps back because still have to service the interest and loan...

 

[kcng]

i dont think lowering the price of cars will help...

as it is now, a second hand viva with 9 years loan also got so many ppl defaulting, what makes u think lowering the price of cars will help to counter this?
lol

heck even a honda cub loan also can default...

 

[vr2turbo]

i dont think lowering the price of cars will help...

as it is now, a second hand viva with 9 years loan also got so many ppl defaulting, what makes u think lowering the price of cars will help to counter this?
lol

heck even a honda cub loan also can default...

Lower the price, more will buy and then more default?.....

 

[kcng]

Lower the price, more will buy and then more default?.....

bank wont even loan...


will tell them to instead...

 

[YYC]

Let's compare my income = RM1,500 (disposable=RM1,327) to buy a Viva 1.0 automatic in these 3 scenarios:

Scenario 1
Current Price = RM37,000
Loan margin = 90% @4%int
Tenure = 9 years
Monthly instalment = RM420

As a bachelor my monthly expenses as follows:
Room rental = RM250 (19%)
Food = RM450 (34%)
Phone bill = RM100 (7%)
Car loan = RM420 (32%)
Petrol (FC=15km/L, distance=1500km, RON95) = RM200 (15%)
Car maintenance (RM100/service every 4 mths) = RM25 (2%)
TOTAL MONTHLY EXPENSES = RM1,445 (109% of my income)

Note: See that I'm having a monthly shortfall of RM118 and I will have 3 months of loan arrear on the 10th month of car ownership
(3-mth arrear=RM420x3=RM1,260, RM1,260/RM118=10.6months).

----------------------------------------------------------------------------------------------------
Scenario 2
Price without excise duty = RM21,143
Loan margin = 90% @4%int
Tenure = 9 years
Monthly instalment = RM240

As a bachelor my monthly expenses as follows:
Room rental = RM250 (19%)
Food = RM450 (34%)
Phone bill = RM100 (7%)
Car loan = RM240 (18%)
Petrol (FC=15km/L, distance=1500km, RON95) = RM200 (15%)
Car maintenance (RM100/service every 4 mths) = RM25 (2%)
TOTAL MONTHLY EXPENSES = RM1,265 (95% of my income)
SAVINGS = RM62
---------------------------------------------------------------------------------------------------------------------------
Scenario 3
Current Price = RM37,000
Loan margin = 50% @4%int
Tenure = 9 years
Monthly instalment = RM233

As a bachelor my monthly expenses as follows:
Room rental = RM250 (19%)
Food = RM450 (34%)
Phone bill = RM100 (7%)
Car loan = RM233 (18%)
Petrol (FC=15km/L, distance=1500km, RON95) = RM200 (15%)
Car maintenance (RM100/service every 4 mths) = RM25 (2%)
TOTAL MONTHLY EXPENSES = RM1,258 (95% of my income)
SURPLUS = RM69
Note: In this case if I can fork out 50% down payment for the Viva la, of course.



My financial status and life would be better off without a car. Ride a cupchai or a Kawasaki Ninja 150RR with more monthly cash surplus to keep.

 

[Waiora_ProTuner]

Anyone having better financial status and life WITH a car? compared to without a car?
Heck! You could go with eating Maggi for better financial status and life..

Owh, please calculate for me if I choose to buy second hand Viva/Kancil...better choice instead...

 

[vr2turbo]

Let's compare my income = RM1,500 (disposable=RM1,327) to buy a Viva

With RM1500 income I won't even think of a car, some more new one.....

---------- Post added at 07:56 AM ---------- 6 hour anti-bump limit - Previous post was at 07:53 AM ----------

bank wont even loan...


will tell them to instead...

They will loan, make money mah! but will see how much can loan....

 

[LesleyAprotto]

at least they got proper public transport....

not to say this restriction is fair la... kesian to lower income group too

Yup, I fully agreed to your statement, their public transport system so efficient,
sometimes felt a bit lazy to even drive, my Singaporean friend told me...

Whats the point of owning fast cars there?

No room to speed, cameras everywhere....

But when the Singaporean cross to Malaysia, they will speed like birds let out of the cage! :star::flybye:

 

[vr2turbo]

Yup, I fully agreed to your statement, their public transport system so efficient,
sometimes felt a bit lazy to even drive, my Singaporean friend told me...

Whats the point of owning fast cars there?

No room to speed, cameras everywhere....

But when the Singaporean cross to Malaysia, they will speed like birds let out of the cage! :star::flybye:

Owning a car in Singapore you also need a place to keep it. My cousin in HPD flats, have to pay parking 24/7, yup 24 hours.....

 

[kcng]

Yup, I fully agreed to your statement, their public transport system so efficient,
sometimes felt a bit lazy to even drive, my Singaporean friend told me...

Whats the point of owning fast cars there?

No room to speed, cameras everywhere....

But when the Singaporean cross to Malaysia, they will speed like birds let out of the cage! :star::flybye:

u seriously think singaporeans dont want to own a car even with world class public transport?
then i salute you.... for living under a bowl...

With RM1500 income I won't even think of a car, some more new one.....

They will loan, make money mah! but will see how much can loan....

wah default become NPL wor... NPL means the income for the bank will come later after all the sue sue thing is settled....
if i am a bank ah, i will tell this kind of ppl to .... i wont borrow to them also...

 

[Veloc]

Even with this new rule, I don't think it is more difficult to live in singapore than in malaysia. Don't just look at the new rule. Take into consideration other aspects especially average salary, cost of living and public transport.

 

[vr2turbo]

u seriously think singaporeans dont want to own a car even with world class public transport?
then i salute you.... for living under a bowl...



wah default become NPL wor... NPL means the income for the bank will come later after all the sue sue thing is settled....
if i am a bank ah, i will tell this kind of ppl to .... i wont borrow to them also...

That is why I mention see how much they can loan you. You credential not good, then no loan loh! like my friend went and default one time kena black list.....

 

[pangyau]

Veloc,
Average SG people also suffer now...
Everything getting expensive and loosing jobs.
Their company replacing the local professional to import professional...
Cheap labor with high production...
Probably incoming few million foreigner from Chinaland to fill SG...
SG people also protesting... COE also implemented on motorcycle not just cars.
Even after 65 years old they still need to work...

You can die but you cannot sick in SG...
You may read the SG news everywhere...

 

[vr2turbo]

Veloc,
Average SG people also suffer now...
Everything getting expensive and loosing jobs.
Their company replacing the local professional to import professional...
Cheap labor with high production...
Probably incoming few million foreigner from Chinaland to fill SG...
SG people also protesting... COE also implemented on motorcycle not just cars.
Even after 65 years old they still need to work...

You can die but you cannot sick in SG...
You may read the SG news everywhere...

Very true. My counter part factory in SG, hires Chinese from China for their R & D dept.,...:hmmmm: