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

[Ahemahem]

walao 100k loan
then monthly how much

 

[swiftblade]

Cause if not how lta make super profits? Really a mockery of our laws, but gdp growth at all costs so close 2 eyes ok

 

[Jacy_Phang]

Wats ur beef with this first?

Answer A
Got cat but reaching 10 years n prevailing coe rates is making Renewal or buy new out of reach.

Answer B
Don't have cat BUT cbeh jelly pple buying cat like nobody biz.

Choose your answer ba...

 

[SuperGreenHorn]

LOL this has been ongoing for many years ever since PHV flooded the market.

That's why you see so many new cars all the time with PHV stickers. Likely these are bought with 100% loan for "private" use instead of fetching passengers. They just need to fetch a few customers per month to meet min quota. Wayang abit can liao.

Of coz the authorities know. They just close one eye coz if clamp down on this, then demand for new cars jitao sky dive and will cause COE to plummet. COE is instant cash cow, why destroy it ??

This is worrisome, if like you said, this loophole has been exploited for years and the government is aware, why are they not taking actions?

 

[Eliwood]

This is worrisome, if like you said, this loophole has been exploited for years and the government is aware, why are they not taking actions?

Becos there is a difference where ppl buy a car for leisure vs buying a car to earn a source of income.

 

[sPacEmAn_sPiFf]

More people buy cars = higher COE revenue

 

[huihong]

walao 100k loan
then monthly how much

i always tio those moneylender spam sms

 

[Philipkee]

This is what I meant by loopholes. As long as the car is a collateral, you cannot call it anything else. Our Ministry of Finance can't be so easy to circumvent one right?

Depends. Was it called a car loan? If not, u cannot call it a car loan. Like if I loan u $100k and u use it to buy a car, it’s a personal loan not car loan

 

[huihong]

walao 100k loan
then monthly how much

SG COMPANY


30min approval


10Kx60 M=180


20Kx60 M=360


50Kx60 M=900


100Kx60 M=1800


spam sms

 

[Sibeihaolian]

honestly only siao lang then will go and take full loan

cheapo car installment also 2.5k
pay until siao

$2.5k per month? Wow, for those that need to take such loans… this amt could be their take home every month. No need to pay for anything else liao man…

 

[JAson1980]

Plug liao how they earn from the soaring COE?

 

[Elfblade]

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?

I remember in the past if take in-house car loan from the car dealer, they can over loan and let you take cash on hand but have to pay higher monthly installment.

E.g. Car cost $100K, they can somehow inflate to $120K loan so Buyer will still have $20K cash in hand for buying a car, but monthly repayment will increase accordingly to $120K total amount.

 

[Elfblade]

$2.5k per month? Wow, for those that need to take such loans… this amt could be their take home every month. No need to pay for anything else liao man…

$2.5K take home after CPF deduction can forget about owning a car in SG, sad truth.

 

[enimen]

I remember in the past if take in-house car loan from the car dealer, they can over loan and let you take cash on hand but have to pay higher monthly installment.

E.g. Car cost $100K, they can somehow inflate to $120K loan so Buyer will still have $20K cash in hand for buying a car, but monthly repayment will increase accordingly to $120K total amount.

But after spread out over multi years, the price increase is negligible. This is how they bait all the wannabe car owners to fork out more.

 

[Sibeihaolian]

I remember in the past if take in-house car loan from the car dealer, they can over loan and let you take cash on hand but have to pay higher monthly installment.

E.g. Car cost $100K, they can somehow inflate to $120K loan so Buyer will still have $20K cash in hand for buying a car, but monthly repayment will increase accordingly to $120K total amount.

I rem got the overtrade option also…

 

[jumpmanz]

the interest will be a killer

 

[pclow59]

which car 100k now?

TS did not said is new car, maybe used car !

 

[Mancunian2]

honestly only siao lang then will go and take full loan

cheapo car installment also 2.5k
pay until siao

you never come across those poor car addicts?

no money but die die buy car
they will beg, borrow, steal to pay for it
and they will park at obscure places so the lenders cannot repossess it

last time got a friend whose job was to hunt down those cars and repossessed them
10-15 years ago , rate was $150-250 per car, no doubt higher now

 

[Asphodeli]

you never come across those poor car addicts?

no money but die die buy car
they will beg, borrow, steal to pay for it
and they will park at obscure places so the lenders cannot repossess it

last time got a friend whose job was to hunt down those cars and repossessed them
10-15 years ago , rate was $150-250 per car, no doubt higher now

wow good lobang sia

 

[swenson]

Banks and approved financial institution are NOT allowed to offer 100%.

• New Cars:
  • If the OMV is $20,000 or less, you can borrow up to 70% of the car's price.
  • If the OMV exceeds $20,000, the loan is capped at 60% of the car's price.
• Used Cars:
  • The loan amount is calculated based on the Applicable OMV, which factors in the car's age and depreciation. The same percentages apply: 70% for OMV ≤ $20,000 and 60% for OMV > $20,000

Therefore, those offering 100% loans are usually taking loan from the dealer's in-house financial arm or partners. These are not governed by the Hire Purchase laws.

Pros and Cons for these arrangements, depending on which side of the fence the buyer is at. There are those who really need to use, but cannot afford the downpayment, thus sacrifice paying higher interest rates and overall higher quantum for owning a car, in comparison to getting the same car at same price with down payment and lower interest.

The dealer also earns more interests/commission.

On the surface, it is a win-win for both parties (willing buyer, willing seller) but the overall social impact will be higher demand and thus constantly higher COE prices

Higher COE prices ==> more $$ for LTA coffers

Why would the scholars want to stop this lucrative income stream????