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

[swenson]

If we have a government that does the right thing, don't you think closing financing loopholes vs COE prices should be taken as 2 separate matters?

Won't you have a very bad opinion of your government if you think that they deliberately have a sinister plot to allow loopholes to circumvent the Hire Purchase Acts so that they could allow artificial demand and people who cannot afford cars to push up the demand and drive up COE prices?

No choice one. With one of the lowest personal and corporate tax structure in the region, sinkapore need the revenue to sustain other aspects of govt spending. How else do you think can come up so much goodies every year budget, including for eg. putting investments into COASTAL & FLOOD PROTECTION or FUTURE ENERGY FUND, which is already at 10 BILLION each, to date!!!

FYI, its not a plot, but rather a golden opportunity to generate revenue from nothing. remember, private cars is NOT a necessity for survival in sinkapore

 

[buttbERry]

interest rates high lor

they want to take this type of loan must be able to service the loan

 

[8zaoyu]

No choice one. With one of the lowest personal and corporate tax structure in the region, sinkapore need the revenue to sustain other aspects of govt spending. How else do you think can come up so much goodies every year budget, including for eg. putting investments into COASTAL & FLOOD PROTECTION or FUTURE ENERGY FUND, which is already at 10 BILLION each, to date!!!

FYI, its not a plot, but rather a golden opportunity to generate revenue from nothing. remember, private cars is NOT a necessity for survival in sinkapore

You summarize liao, SG needs revenues from indirect taxes, and good brains to generate more for the Mass and just for themselves only.
EDMWers only good at asking questions which we all also wondering.
My question is why not direct taxes from high incomes and high profits only leh?

 

[swenson]

You summarize liao, SG needs revenues from indirect taxes, and good brains to generate more for the Mass and just for themselves only.
EDMWers only good at asking questions which we all also wondering.
My question is why not direct taxes from high incomes and high profits only leh?

In fact almost all countries practice direct taxes from high income and high profits.
eg. Low income the % tax is nil or low, same for businesses below (first chargeable income S$200k and below)
The progressive wage tax ensures that the rich are taxed more

if set too high, nobody wants to come setup in sinkapore liao. Our low tax rates is one of the primary reason that foreign entities want to setup hq and facilities here.
These 2 already contribute ~40% of sinkapore govt revenue, still want to squeeze more ah?

 

[Eliwood]

If cannot regulate properly then why regulate at all?

Maybe their focus is only to ensure defaults dun hit the banks?

For the other lenders, the amounts are small so doesnt matter even if they collapse due to default?

 

[Eliwood]

Why should revenue be linked to this discussion? If the govt. can justify for more revenue, they have so many ways to get it. You don't have to worry for them.

We can't be having poor governance and financial framework for the sake of short term revenue gain. Those ppl taking in-house loans and 100% loans are also circumventing TDSR and MSR for their housing loans too. This is poor financial prudence and our government should not allow such loopholes to continue.

We should not put the stability of our banking system at risk for such lazy excuses.

Those lenders are not banks, and are too small to impact SG's financial stability.

 

[SuperGreenHorn]

Those lenders are not banks, and are too small to impact SG's financial stability.

How do we know who are behind funding those lenders? Banks cfm won't tio?
Who would imagine Lehman brothers crisis can lead to insurance companies going bankrupt?

Anyway, what was govt. rationals for regulating car hire purchase? Wasn't it to manage the buyer exuberance (demand) and risk to the financial system? What's the reason for some people here to defend government decision to leave a loophole?

 

[Saltedcarameleslut]

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 stop monitoring and make everyone follow the rules?

u really believe...

those ppl can only take max 7 years loan?

and of cos the $1 down payment is also legit!

if not....how come the roads are still conjested...

despite the HIGH COE!

 

[Eliwood]

What's the reason for some people here to defend government decision to leave a loophole?

Probably the same reason why ppl are complaining abt a perceived loophole which doesnt have to impact them.

Too free lol.

 

[jonleelk]

I rem got the overtrade option also…

Now still have, but that is mainly to help lower the amount of downpayment.

 

[jonleelk]

Agree that rental companies can lease out the vehicle to drivers and ask them to pay monthly without deposit or down payment.
Only problem i see is that the COE is bidded using the driver name and ID. So why COE belongs to driver and car belongs to rental company? Is this what the COE system is built for ?

So that MOT can say PHV companies bidding for COE is not the cause for high COE prices.

 

[SuperGreenHorn]

Why should revenue be linked to this discussion? If the govt. can justify for more revenue, they have so many ways to get it. You don't have to worry for them.

We can't be having poor governance and financial framework for the sake of short term revenue gain. Those ppl taking in-house loans and 100% loans are also circumventing TDSR and MSR for their housing loans too. This is poor financial prudence and our government should not allow such loopholes to continue.

We should not put the stability of our banking system at risk for such lazy excuses.

 

[sglandscape]

It's not a loophole, financing provided by private market and not bank so they can do anything they wish, consumers who go with this end up paying a lot more in interest, but willing buyer willing seller. Would be more similar to leasing model, where servicing, road tax all included too.

Learn more about how it works first before say have loophole

 

[sglandscape]

So that MOT can say PHV companies bidding for COE is not the cause for high COE prices.

PHV usage, not just the companies blur the line of what drives COE demand. Anyway with Grab being a licensed taxi company now, PHV likely will slowly be in sunset and revert back to a more conventional taxi company model, just with an app and can hail at your preferred location VS flag down. Likely better supply of drivers too vs the current gig economy approach.

 

[Can Or Not]

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 stop monitoring and make everyone follow the rules?

Why you tell everyone… keep quiet ma

 

[SuperGreenHorn]

Why you tell everyone… keep quiet ma

Right. Keep quiet maybe in future can loan 150%~200% of car value too!

 

[Spike]

Flat rate is pay interest pay till siao.. 10 years somemore. Can buy the same car 1.5X full cash 10 years later.

 

[HeiHeiHei]

In house loan…. Also not bank loan…. Nobody force anyone to buy a full loan car…

 

[PARKRANGER]

Why would one be so beh kan
Cannot afford car still want buy car with full loan
Siao

 

[parchiao]

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 stop monitoring and make everyone follow the rules?

PAP is full of double standards.

If it is related to getting more revenue, PAP will double standard to the max.

End of the day, the Sinkies suffer.