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Old 8th April 2013, 09:06 AM   #1 (permalink)
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MAS lifts current car loan curbs for 60 days for some used cars

MAS lifts current car loan curbs for 60 days for some used cars


MAS lifts current car loan curbs for 60 days for some used cars (Yahoo! photo)

By Peace Chiu | Fit to Post Autos – Fri, Apr 5, 2013


Relief at last for second-hand car dealers.

The Monetary Authority of Singapore (MAS) will lift current restrictions on car loans for a period of 60 days for used cars that were part of car dealers’ inventory before the new curbs were introduced on 25 February.

As dealers have up to seven days to register used cars under the Land Transport Authority’s (LTA) Temporary Transfer Scheme (TTS), used cars registered as of 4 March will be eligible for this concession. MAS estimates this pool comprises less than 7,000 cars.

In a statement on Friday, MAS says the move takes into account the distinct conditions in the used car market currently.

It says that the inventory of used cars acquired by dealers at relatively high in-built Certificate of Entitlement (COE) values before the introduction of the financing restrictions has made it particularly challenging for them to adjust to the new market conditions.

MAS adds that demand has also fallen more sharply in the used car market compared to that for new cars and many second-hand car dealers have borne the brunt of the new rulings, particularly those who were holding on to a large supply of used cars when the new rules were announced.

The Ministry of Trade and Industry (MTI) also issued on Friday new regulations to ensure that MAS’ financing curbs on the purchase of cars apply to all entities that finance car purchases, including those that are not regulated by MAS.

MAS says it will continue to monitor developments in the car market COE premiums and will recalibrate the financing restrictions for new and used cars when appropriate.

The new car loan restrictions is expected to be hotly debated when Parliament convenes next Monday.

Source: http://sg.news.yahoo.com/blogs/fit-t...104501222.html

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Old 9th April 2013, 08:24 AM   #2 (permalink)
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Used car showrooms see visitor surge

Used car showrooms see visitor surge

Used car dealers saw a surge in visitor numbers to their showrooms, after the MAS announced on Friday that loan restrictions on some used cars would be suspended for 60 days from April 6.

By Leong Wai Kit
POSTED: 06 Apr 2013 9:02 PM


SINGAPORE: Used car dealers saw a surge in visitor numbers to their showrooms, after the MAS announced on Friday that loan restrictions on some used cars would be suspended for 60 days from April 6.

Following feedback from the Singapore Vehicle Traders Association, the Monetary Authority of Singapore (MAS) lifted temporarily its curbs on vehicles that were in stock or acquired before February 25, when the restrictions were announced.

The MAS curbs limit car loans to no more than 60 per cent of the purchase price and a tenure of not more than five years for vehicles with an open market value (OMV) of S$20,000 or less. When the OMV is more than S$20,000, a tighter limit of 50 per cent will be imposed.

To buy, or not to buy.

That was the question on the minds of those who went shopping for a second-hand car at showrooms in Ubi on Saturday.

But they have only up till 4 June to make up their minds.

A man at a showroom said the 60-day reprieve is a good time "to look around" while another potential buyer said "there is a window for us to do it, so we better do it as fast, as soon as possible".

The temporary lifting of restrictions is good news for second-hand car dealers who saw a drop in demand for their vehicles since the curbs were rolled out.

Eric Liew, general manager of Fugen Automobile, said: "I believe that in this short term, the measure will really help our business. I think more people are already coming in, looking at the cars right now."

But car dealers predict sales would not pick up until the third week, as consumers wait out for discounts.

Some dealers are considering offering discounts of up to 5 per cent for small cars and up to 10 per cent for big cars during the 60-day window.

They believe small second-hand cars will be popular among buyers.

Once the 60-day period is up, some dealers say they will scale down their business.

Fugen Automobile's Eric Liew said: "Looking forward, I would say that it's really very uncertain. Because after these 60 days, it will be back to the restrictions, and then we can foresee that most probably it'll become a very big slowdown."

Source: http://www.channelnewsasia.com/news/...e/629308.html#

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Old 10th April 2013, 10:27 AM   #3 (permalink)
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Temporary lifting of car loan restrictions will not be extended

Temporary lifting of car loan restrictions will not be extended


Photo: Ooi Boon Keong

BY
S RAMESH


SINGAPORE — The Monetary Authority of Singapore (MAS) will not be extending the temporary lifting of car loan restrictions for used cars beyond the two-month period, said Acting Minister Lawrence Wong in Parliament today.

Mr Wong, who is on the MAS’ board of directors, said the time period is already “very reasonable”. He pointed to figures from the Land Transport Authority (LTA), which showed that of the 11,000 used cars acquired before the loan restrictions in February, 4,000 were sold in the following month.

Based on this trend, Mr Wong said dealers should be able to sell most of the remaining 7,000 used cars within the two-month period.

He assured that MAS has taken in feedback, studied the issues very carefully and worked out what would be a reasonable period to help the used car dealers clear their inventory. The used car industry had found it challenging to dispose of the inventory that was acquired with higher COE values before the introduction of the restrictions in February.

MAS had earlier restricted buyers of both new and used cars, to loan up to 60 per cent only. Buyers also have to service the loans over a shorter period of five years.

Mr Wong explained that in granting the temporary concession, MAS had considered the fact that demand had fallen more significantly for used cars, but added that it is not possible to relieve the industry on a continual basis without undermining the policy objectives. The objectives are to encourage financial prudence, moderate the demand for cars and cool the prices of COEs.

He said the industry should adjust to the new reality in the car market.

Mr Wong said: “MAS will continue to monitor the developments in the COE market and will re-calibrate the financing restrictions for all cars — new and old in response to market conditions, in particular a sustained moderation in COE prices, but we will not in some time revert to the pre-February situation of having no financing restrictions for car purchases.”

Source: http://www.todayonline.com/singapore...ot-be-extended

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Old 15th April 2013, 08:27 AM   #4 (permalink)
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2,500 used cars which qualify for full loans sold: association

2,500 used cars which qualify for full loans sold: association

The Singapore Vehicle Traders Association estimates that 2,500 used cars qualifying for full loans have been sold so far. About a week ago, Singapore's Monetary Authority (MAS) lifted borrowing limits for second-hand vehicles in stock before February 25, when loan curbs were imposed.

By Dylan Loh
POSTED: 14 Apr 2013 9:51 PM


SINGAPORE: The Singapore Vehicle Traders Association estimates that 2,500 used cars qualifying for full loans have been sold so far.

About a week ago, Singapore's Monetary Authority (MAS) lifted borrowing limits for second-hand vehicles in stock before February 25, when loan curbs were imposed.

In the following weekends, prospective buyers flocked to motor firms, hoping to snag a good deal.

Some 7,000 second-hand vehicles qualify for full loans, if they are purchased within a 60-day period.

MAS’ move to help used car dealers sell old stock of automobiles has been welcomed by the Singapore Vehicle Traders Association.

The association said buyers' response has been "overwhelming", evidenced by weekend crowds at used car showrooms.

About a week after loan restrictions were temporarily eased, the association said roughly a third of old used car stocks has been cleared.

Chicago Motors had around 30 second-hand vehicles stocked before borrowing limits of up to 60 per cent were imposed. 29 of those vehicles have been sold.

Francis Hilton, car dealer at Chicago Motors, said: "Everybody come in, they only look for 100-per cent loans for cars - the old stock. When we trying to push this 60 per cent loan, they reject it - they walk to another shop."

Used car dealers have had to cut prices by 10 per cent or more to get people to bite in a market of reduced demand after loan curbs were imposed.

Overall, new car dealers seem to be the hardest hit as buyers appear to be eye second-hand vehicles.

Source: http://www.channelnewsasia.com/news/...h/638262.html#

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Old 22nd April 2013, 07:36 AM   #5 (permalink)
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A last hurrah for used car dealers

A last hurrah for used car dealers



A 60-day reprieve has breathed new life into a used car market that was badly hit by drastic loan curbs. TODAY’s senior photojournalist Ernest Chua visited the used car mart at Turf City last week where bustling business returned, after sales slowed to a trickle following the curbs which took effect on February 26.

On April 5, the Monetary Authority of Singapore said it was lifting loan curbs for 60 days for less than 7,000 used cars. The announcement came after several appeals from used-car dealers.

With the authorities making clear that the period will not be extended, several used car dealers TODAY spoke to are making use of this window to clear their stock, before restructuring their business or getting out of the line for good.

One of them, who only gave his name as Philip, said: “Now you see good business, but At the end of the grace period, you will see a lot of company downsizing and some are already preparing to close down.”

Another dealer, who just joined the industry two years ago, said he would most likely go back to his previous job as a property agent.

According to the Singapore Vehicle Traders Association, about 30 per cent of the used cars which qualify for full loans were sold within the first week of lifting the loan curbs.

Source: http://www.todayonline.com/singapore...ed-car-dealers

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Old 3rd May 2013, 01:42 PM   #6 (permalink)
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43% of used cars qualifying for full loans sold at halfway mark

43% of used cars qualifying for full loans sold at halfway mark

Of the 7,000 used cars which qualified for a temporarily lift on the current curbs on bank loans, some 43 per cent of them have been sold since 6 April.

By Dylan Loh
POSTED: 03 May 2013 12:11 AM


SINGAPORE: Of the 7,000 used cars which qualified for a temporarily lift on the current curbs on bank loans, some 43 per cent of them have been sold since 6 April.

Current restrictions on car loans for the purchase of used cars were temporarily lifted from 6 April for 60 days.

Under new curbs announced in February, loans for cars were capped at a maximum of 60 per cent of the purchase price.

Used car dealers have been putting up signs on cars to tell potential buyers which ones qualify for full loans.

But such options are quickly disappearing as the halfway point in the 60-day break from loan curbs approaches.

The reprieve was aimed at helping used car dealers sell old stock acquired before the new borrowing restrictions came into place, on 25 February 2013.

Managing director of CarTimes Automobile, Eddie Loo, said this has greatly helped sales.

"We have about 37 units of those ex-stocks. We have cleared (most of them), left with two units only. So it has turned out to be not only good, it's fantastic."

When borrowing restrictions revert next month, the Singapore Vehicle Traders Association expects times to be tougher.

It said used car dealers are likely to be more careful about stockpiling second-hand vehicles.

The association also noted that some dealers have reduced office space in anticipation of slower business.

The association's honorary secretary, Raymond Tang, said: "There is still business. Business will carry on. And I think dealers might have, you see, less costs, in the way that they won't be carrying so many stocks... so it might be a bit safer for the dealers to do their business."

The association is appealing to authorities to restructure loan packages for used cars.

It is proposing that borrowing limits be raised from 60 to 80 per cent, and for loan tenures to be extended from five to eight years.

Source: http://www.channelnewsasia.com/news/...an/661792.html

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Old 14th May 2013, 09:57 AM   #7 (permalink)
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55% of used cars left in TTS before restrictions were imposed: Lui Tuck Yew

55% of used cars left in TTS before restrictions were imposed: Lui Tuck Yew

Around 55 per cent of used cars that were left in the Land Transport Authority's Temporary Transfer Scheme (TTS) before car loan restrictions were imposed in February 2013, have been sold.

POSTED: 14 May 2013 1:02 AM


SINGAPORE: Around 55 per cent of used cars that were left in the Land Transport Authority's Temporary Transfer Scheme (TTS) before car loan restrictions were imposed in February 2013, have been sold.

That is about 3,800 used cars out of the 7,000 some used cars in the TTS, as of May 7.

Transport Minister Lui Tuck Yew stated this in a written response to a parliamentary question filed by MP for Jurong GRC Ang Wei Neng.

Car loan restrictions had been temporarily lifted for 60 days from April 6, 2013, to help the industry adjust to the new conditions.

Six months before the financial curb was imposed, about 5,000 used cars were sold monthly from August 2012 to January 2013.

The loan curb had also been lifted for the physically disabled or their caregivers, and implementation details were released on April 15, 2013.

Mr Lui revealed that the Monetary Authority of Singapore has received one application from a borrower under the framework. He added MAS has received queries on the framework, and expects to receive more applications in due course.

Source: http://www.channelnewsasia.com/news/...r/673930.html#

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