Are you one of them?
Most of them will be busy shopping for cars this weekend.
MAS Eases Rules on Motor Vehicle Financing
The Monetary Authority of Singapore (MAS ) has eased car loan guidelines.
For cars with an open market value (OMV) of $20,000 or less, buyers can borrow up to 70 per cent of the purchase price, up from 60 per cent.
Buyers of cars with OMVs of more than $20,000 can now borrow up to 60 per cent of the purchase price, up from 50.
The loan tenure has also been raised to seven years, from five.
Motor traders said many parties have found ways to circumvent the loan curbs.
One common way is to inflate the invoice of the car. A
nother is to offer leases instead of hire-purchase deals.
Of late, ride-hailing apps like Uber have also been offering high loans to potential car buyers.
They can do so because the cars are registered under a company’s name, as private-hire vehicles, instead of the buyer’s name.
So everyone, be expect to see the raise of COE prices in the next round.
Is this move, to counter Uber or it is use to stabilize the COE price as Uber will bidding for the next round which will cause a sharp drop on the COE?