Why are Finance Minister and Transport Minister not plugging the loopholes for car loans?

SuperGreenHorn

SuperGreenHorn

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Moi friend just bought a car for 100k, he was able to take out full loan of 100k for the car and loan till the final month.

I was told this is a very rampant practice amongst car buyers, car rental companies who bought new PHV vehicles are also able to loan the full amount of the price of the car and stretch the loan for 10 years.

I thought MAS stipulated that car loans are supposed to be up to 60-70% of the value of the vehicles and max loan term is 7 years?

Why are such financing loopholes allowed? Can the Finance Minister and Transport Minister please direct your ministries to clamp down on these malpractices before it affects the stability of our financial system?
 
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Asphodeli

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SuperGreenHorn said:
Moi friend just bought a car for 100k, he was able to take out full loan of 100k for the car and loan till the final month.

I was told this is a very common practise amongst car buyers, car rental companies who bought new PHV vehicles are also able to loan the full amount of the price of the car and stretch the loan for 10 years.

I thought MAS stipulated that car loans are supposed to be up to 60-70% of the value of the vehicles and max loan term is 7 years?

Why are such financing loopholes allowed? Can the Finance Minister and Transport Minister please stop monitoring and make everyone follow the rules?
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Because its not banks that are providing the loans, MAS doesn't care
 
focus1974

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SuperGreenHorn said:
Moi friend just bought a car for 100k, he was able to take out full loan of 100k for the car and loan till the final month.

I was told this is a very common practise amongst car buyers, car rental companies who bought new PHV vehicles are also able to loan the full amount of the price of the car and stretch the loan for 10 years.

I thought MAS stipulated that car loans are supposed to be up to 60-70% of the value of the vehicles and max loan term is 7 years?

Why are such financing loopholes allowed? Can the Finance Minister and Transport Minister please stop monitoring and make everyone follow the rules?
Click to expand...

$100k car? he bought old car?
 
E

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SuperGreenHorn said:
Moi friend just bought a car for 100k, he was able to take out full loan of 100k for the car and loan till the final month.

I was told this is a very common practise amongst car buyers, car rental companies who bought new PHV vehicles are also able to loan the full amount of the price of the car and stretch the loan for 10 years.

I thought MAS stipulated that car loans are supposed to be up to 60-70% of the value of the vehicles and max loan term is 7 years?

Why are such financing loopholes allowed? Can the Finance Minister and Transport Minister please stop monitoring and make everyone follow the rules?
Click to expand...


dont jelly la
 
coyote

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SuperGreenHorn said:
Moi friend just bought a car for 100k, he was able to take out full loan of 100k for the car and loan till the final month.

I was told this is a very common practise amongst car buyers, car rental companies who bought new PHV vehicles are also able to loan the full amount of the price of the car and stretch the loan for 10 years.

I thought MAS stipulated that car loans are supposed to be up to 60-70% of the value of the vehicles and max loan term is 7 years?

Why are such financing loopholes allowed? Can the Finance Minister and Transport Minister please stop monitoring and make everyone follow the rules?
Click to expand...

Don't spoil your friend's lobang. You can also do the same like your friend instead of being jealous?
 
W

wongkc

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The max 60/70% over 7yrs rules only applies to Hire Purchase... which means u "fully" own the car after complete repayment...

Those 100% are more of a 10yr lease... u dun own the car at all...
 
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Philipkee

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SuperGreenHorn said:
Moi friend just bought a car for 100k, he was able to take out full loan of 100k for the car and loan till the final month.

I was told this is a very common practise amongst car buyers, car rental companies who bought new PHV vehicles are also able to loan the full amount of the price of the car and stretch the loan for 10 years.

I thought MAS stipulated that car loans are supposed to be up to 60-70% of the value of the vehicles and max loan term is 7 years?

Why are such financing loopholes allowed? Can the Finance Minister and Transport Minister please stop monitoring and make everyone follow the rules?
Click to expand...

SuperGreenHorn said:
Not banks then can be lawless already ah? What are the laws for?
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It’s complicated

Cos there are many scenarios and obviously I never think of all of them

The loan is NOT a car loan. It’s a personal loan. It’s just a coincidence u use the money to buy the car. Should it be controlled? One day u no money and need to borrow from licensed money lender and they say sorry the law says cannot, go to bank poor credit risk so no loan, go to friend and friend say sorry no cannot cos as per edmw, all loans are to be regulated so please apply through your MP…. U want?

Second is u don’t own the car. The car is in the company’s name and u leased for 10 years. What’s so illegal about that?

and so on.
 
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