28-02-2013, 01:11 PM
i think in life if you have desperately want or craving, you will find a "loophole". Rules are make by man, man make rules (aka individual own rules). Don't go and break the Laws of the country, O. K.?
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28-02-2013, 01:11 PM
28-02-2013, 01:39 PM
I am looking this from an investment point of view. Whether it will benefit licensed money lenders such as listed company Maxicash. So i guess the answer is cannot.
28-02-2013, 02:39 PM
Quote: For Mr Kua, who earns about $4,000 a month, acquiring a second-hand BMW 3 series under the new rules will mean a $40,000 cash outlay.
Sometimes, people need to be saved from themselves. BMW 3 series at 28 years old with an earnings of 4,000 per month.
28-02-2013, 06:14 PM
(28-02-2013, 02:39 PM)thefarside Wrote: [ -> ]Sometimes, people need to be saved from themselves. BMW 3 series at 28 years old with an earnings of 4,000 per month.
Yeah I was thinking the same thing. What is this young man thinking?!
28-02-2013, 07:18 PM
Guess he was willing to finance a 4yr car loan for his dream car (6 yrs old) with 40% of his pay after downpayment.
But then again, its an individual's choice of deciding "car or more cash in hand". And sometimes individual's decision are irrational just like Mr. Market
But then again, its an individual's choice of deciding "car or more cash in hand". And sometimes individual's decision are irrational just like Mr. Market
28-02-2013, 07:44 PM
01-03-2013, 07:30 AM
(28-02-2013, 06:14 PM)Musicwhiz Wrote: [ -> ](28-02-2013, 02:39 PM)thefarside Wrote: [ -> ]Sometimes, people need to be saved from themselves. BMW 3 series at 28 years old with an earnings of 4,000 per month.
Yeah I was thinking the same thing. What is this young man thinking?!
He is a bank officer mah.
My friend who works for one of the local banks was told to 'upgrade' her attire to more branded stuff when she moved up. Won't be surprise if there is some form of peer pressure involved.
01-03-2013, 07:37 AM
At least 5 months bonus for bank officer at front line.
01-03-2013, 08:24 AM
Changed the title to "COE and Car Prices".
Why are all the interviewed "Bank Officers"? Makes it seem like they are the ones aggressively buying cars before they hit 30!
The Straits Times
www.straitstimes.com
Published on Mar 01, 2013
Used car dealers slash prices
But price tags of new big, luxury cars go up in wake of cooling measures
By Jermyn Chow And Christopher Tan
USED car dealers have started to cut their prices in a desperate bid to attract customers, following the measures that limit loans and impose extra taxes on cars.
But most major new car dealers, such as Borneo Motors, Tan Chong Motor and Performance Motors, have raised the prices of big and luxury cars, as these now incur higher taxes under the new tiered Additional Registration Fee (ARF) scheme.
The price cuts on second-hand cars are prompted by cooling measures that now limit the loan quantum to 50 per cent or 60 per cent of a vehicle's purchase price and halve the maximum duration of the loan to five years.
Previously, buyers could take loans of up to 100 per cent of the purchase price and stretch their loans to 10 years.
Auto Midas was one of the used car dealers that cut its prices, lowering them by 15 to 25 per cent for some cars. Ms Sandi Yong, one of its directors, said she wanted to sell as many of the 30-plus cars sitting in her Bukit Batok Crescent showroom as possible.
For instance, a Honda Fit, whose certificate of entitlement (COE) expires in four years' time, now costs $58,000, down from $68,000 a week ago. "We don't have any choice. Every day a car stays in my showroom, I lose between $30 and $100," she said.
Her company typically sells about 20 cars a month, but she expects business to plunge by 50 per cent this month. "We had buyers who were initially keen but now say they can no longer afford the large downpayment," she said.
To stem the loss, Auto Midas is throwing in free servicing and other car freebies to draw buyers.
Over at Car Regency in Leng Kee, its managing director Lim Zhihao is preparing for the worst - fewer cars sold and smaller commissions from car loans.
A used car salesman can now earn only about $1,000 from a $50,000 loan, down from $2,000, he said. "We are trying to minimise the damage by relooking prices and the sales commission structure while hoping banks can come up with good loan deals to help give middle-class buyers a way out."
Elsewhere, new car dealers are raising prices of costlier cars that are affected by higher ARF, fanning speculation that COE prices may not head far south in the next tender this month.
Under the new tiered scheme, a car with an Open Market Value (OMV) of up to $20,000 will be taxed at the current rate of 100 per cent. The next $30,000 will be taxed at 140 per cent, and any OMV above $50,000 at 180 per cent.
The price hikes at Toyota distributor Borneo Motors range from $1,000 to $17,000 for 31 models. The Toyota Wish Classic, for instance, now costs $173,988, up from $172,988, while the biggest surge of $17,000 comes from the Toyota Crown, which now costs $266,988.
Tan Chong Motor general manager Ron Lim told The Straits Times that the dealership raised the prices of its cars above 1,600 cc to "factor in higher ARF".
Other cheaper Japanese and Korean brands like Kia and Mitsubishi, which mostly have OMVs below $20,000, have not seen any price hikes.
There are also distributors who are turning to promotions to entice buyers.
Citroen agent Cycle & Carriage introduced a "name your COE bid" promotion, while Volkswagen spokesman Colin Yong said it was absorbing all the ARF increases and holding prices.
But it remains to be seen if consumers will bite.
Bank officer Joseph Lin, who wants to replace his six-year-old Nissan March, is still holding out hope for prices to fall eventually.
"It will be a matter of time before COE premiums and car prices go down," he said. "In the meantime, it is a good time for me to save as much as I can for the larger cash outlay."
jermync@sph.com.sg
christan@sph.com.sg
---------------------------------
The Straits Times
www.straitstimes.com
Published on Mar 01, 2013
Dealers appeal for curbs to be eased
USED car dealers fearing a slump in business have urged the Monetary Authority of Singapore (MAS) to ease tough government restrictions on vehicle loans.
The Singapore Vehicle Traders Association (SVTA), which represents more than 400 used car dealers here, is proposing that loan reductions be progressive, rather than a "punitive" cut to 50 per cent or 60 per cent of the car's Open Market Value (OMV).
Besides stumping up more cash for upfront payments, car buyers now also have to contend with bigger monthly instalments because the maximum loan period has been shortened from 10 to five years.
The SVTA sent off their appeal after an emergency meeting on Wednesday and is still waiting for a response from the MAS.
SVTA secretary Raymond Tang told The Straits Times: "If the purpose is to bring certificate of entitlement (COE) prices down or dampen demand for new cars, there is no need to apply the same measures on used cars."
He added: "These cars are already on the road and will not add to the population.
"From our experience, used car buyers are really the man in the street who will be really affected by the new financing rules.
"We urge the authorities to tackle the real sickness and not just the symptoms."
The real problem, he noted, is the cost of a COE. "If COE was not so high, people will not need to borrow so much in the first place."
The lucrative used car market saw some 77,000 transactions last year - an average of 6,400 transactions a month excluding commercial vehicles.
In January, some 7,000 transactions were made.
Used car dealers whom The Straits Times spoke to say they are expecting business to plunge by more than 50 per cent within the next six months.
While some have resorted to slashing their prices, others are preparing to restructure their businesses.
RPM Automobile's Bret Chin said he could be converting his dealership into a leasing or rental company.
"No one will be buying and I will be stuck with all the cars, so I might as well rent them out," said Mr Chin, who currently has more than 10 cars left in his showroom.
Mr Melvin Teo, who was looking for a second-hand car, said he regretted not buying a car before the stricter car loans kicked in earlier this week. Now the bank officer might have to shelve his plans because of the heftier cash outlay.
"I thought I would have got a better deal after the Chinese New Year but it looks like there is no deal now."
JERMYN CHOW
CHRISTOPHER TAN
Why are all the interviewed "Bank Officers"? Makes it seem like they are the ones aggressively buying cars before they hit 30!
The Straits Times
www.straitstimes.com
Published on Mar 01, 2013
Used car dealers slash prices
But price tags of new big, luxury cars go up in wake of cooling measures
By Jermyn Chow And Christopher Tan
USED car dealers have started to cut their prices in a desperate bid to attract customers, following the measures that limit loans and impose extra taxes on cars.
But most major new car dealers, such as Borneo Motors, Tan Chong Motor and Performance Motors, have raised the prices of big and luxury cars, as these now incur higher taxes under the new tiered Additional Registration Fee (ARF) scheme.
The price cuts on second-hand cars are prompted by cooling measures that now limit the loan quantum to 50 per cent or 60 per cent of a vehicle's purchase price and halve the maximum duration of the loan to five years.
Previously, buyers could take loans of up to 100 per cent of the purchase price and stretch their loans to 10 years.
Auto Midas was one of the used car dealers that cut its prices, lowering them by 15 to 25 per cent for some cars. Ms Sandi Yong, one of its directors, said she wanted to sell as many of the 30-plus cars sitting in her Bukit Batok Crescent showroom as possible.
For instance, a Honda Fit, whose certificate of entitlement (COE) expires in four years' time, now costs $58,000, down from $68,000 a week ago. "We don't have any choice. Every day a car stays in my showroom, I lose between $30 and $100," she said.
Her company typically sells about 20 cars a month, but she expects business to plunge by 50 per cent this month. "We had buyers who were initially keen but now say they can no longer afford the large downpayment," she said.
To stem the loss, Auto Midas is throwing in free servicing and other car freebies to draw buyers.
Over at Car Regency in Leng Kee, its managing director Lim Zhihao is preparing for the worst - fewer cars sold and smaller commissions from car loans.
A used car salesman can now earn only about $1,000 from a $50,000 loan, down from $2,000, he said. "We are trying to minimise the damage by relooking prices and the sales commission structure while hoping banks can come up with good loan deals to help give middle-class buyers a way out."
Elsewhere, new car dealers are raising prices of costlier cars that are affected by higher ARF, fanning speculation that COE prices may not head far south in the next tender this month.
Under the new tiered scheme, a car with an Open Market Value (OMV) of up to $20,000 will be taxed at the current rate of 100 per cent. The next $30,000 will be taxed at 140 per cent, and any OMV above $50,000 at 180 per cent.
The price hikes at Toyota distributor Borneo Motors range from $1,000 to $17,000 for 31 models. The Toyota Wish Classic, for instance, now costs $173,988, up from $172,988, while the biggest surge of $17,000 comes from the Toyota Crown, which now costs $266,988.
Tan Chong Motor general manager Ron Lim told The Straits Times that the dealership raised the prices of its cars above 1,600 cc to "factor in higher ARF".
Other cheaper Japanese and Korean brands like Kia and Mitsubishi, which mostly have OMVs below $20,000, have not seen any price hikes.
There are also distributors who are turning to promotions to entice buyers.
Citroen agent Cycle & Carriage introduced a "name your COE bid" promotion, while Volkswagen spokesman Colin Yong said it was absorbing all the ARF increases and holding prices.
But it remains to be seen if consumers will bite.
Bank officer Joseph Lin, who wants to replace his six-year-old Nissan March, is still holding out hope for prices to fall eventually.
"It will be a matter of time before COE premiums and car prices go down," he said. "In the meantime, it is a good time for me to save as much as I can for the larger cash outlay."
jermync@sph.com.sg
christan@sph.com.sg
---------------------------------
The Straits Times
www.straitstimes.com
Published on Mar 01, 2013
Dealers appeal for curbs to be eased
USED car dealers fearing a slump in business have urged the Monetary Authority of Singapore (MAS) to ease tough government restrictions on vehicle loans.
The Singapore Vehicle Traders Association (SVTA), which represents more than 400 used car dealers here, is proposing that loan reductions be progressive, rather than a "punitive" cut to 50 per cent or 60 per cent of the car's Open Market Value (OMV).
Besides stumping up more cash for upfront payments, car buyers now also have to contend with bigger monthly instalments because the maximum loan period has been shortened from 10 to five years.
The SVTA sent off their appeal after an emergency meeting on Wednesday and is still waiting for a response from the MAS.
SVTA secretary Raymond Tang told The Straits Times: "If the purpose is to bring certificate of entitlement (COE) prices down or dampen demand for new cars, there is no need to apply the same measures on used cars."
He added: "These cars are already on the road and will not add to the population.
"From our experience, used car buyers are really the man in the street who will be really affected by the new financing rules.
"We urge the authorities to tackle the real sickness and not just the symptoms."
The real problem, he noted, is the cost of a COE. "If COE was not so high, people will not need to borrow so much in the first place."
The lucrative used car market saw some 77,000 transactions last year - an average of 6,400 transactions a month excluding commercial vehicles.
In January, some 7,000 transactions were made.
Used car dealers whom The Straits Times spoke to say they are expecting business to plunge by more than 50 per cent within the next six months.
While some have resorted to slashing their prices, others are preparing to restructure their businesses.
RPM Automobile's Bret Chin said he could be converting his dealership into a leasing or rental company.
"No one will be buying and I will be stuck with all the cars, so I might as well rent them out," said Mr Chin, who currently has more than 10 cars left in his showroom.
Mr Melvin Teo, who was looking for a second-hand car, said he regretted not buying a car before the stricter car loans kicked in earlier this week. Now the bank officer might have to shelve his plans because of the heftier cash outlay.
"I thought I would have got a better deal after the Chinese New Year but it looks like there is no deal now."
JERMYN CHOW
CHRISTOPHER TAN
01-03-2013, 08:54 AM
"I thought I would have got a better deal after the Chinese New Year but it looks like there is no deal now."
In fact I think I would get a better deal after the curbs since overall car prices due to COE prices are lower. Its just that I need to have cash upfront. But i have a lower loan repayments later
In fact I think I would get a better deal after the curbs since overall car prices due to COE prices are lower. Its just that I need to have cash upfront. But i have a lower loan repayments later