Loan curbs for used cars to stay for now: MAS

Loan curbs for used cars to stay for now: MAS

    By Alice Chia
    POSTED: 14 Aug 2013 9:42 PM
 
Despite representations from used car dealers, the Monetary Authority of Singapore (MAS) said that the financing restrictions remain relevant as it encourages financial prudence among consumers and exerts a moderating influence on COE prices.

SINGAPORE: It seems like the loan curbs for used cars are here to stay -- at least for awhile.

Despite representations from used car dealers, the Monetary Authority of Singapore (MAS) said on Wednesday that the financing restrictions remain relevant as it encourages financial prudence among consumers and exerts a moderating influence on COE prices.

Under current rules that took effect in late February, used-car buyers can borrow only up to 60 per cent of the car's purchase price, with the maximum period of the loan capped at five years.

The Singapore Vehicle Traders Association met MAS on Tuesday to call for a review of the curbs.

The association said many dealers are suffering, with business dropping by at least 50 per cent.

It is proposing that buyers be allowed to borrow up to 80 per cent of the purchase price, and for the loan to be serviced for up to eight years.

MAS said in a statement on Wednesday that it appreciates the feedback, emphasising that the financing restrictions are not permanent.

It also added that it will continue to monitor the situation and review the calibration of the restrictions in line with market conditions.

- CNA/jc

- wong chee tat :)