I think the focus has shifted to contain the ownership costs. Getting a car was too easy but very costly. Now it will be a bit cheaper but you have to save up to put the downpayment.
so the message is save up if you want a ride.
(looking forward to crashing COE's so that i can get a beauty in my hands.)
got it from TRS just now.
"DO THE MATHS
Because of the down payment changes, you must have at least six months’ cash for household requirements in the bank before you can think about buying a car… In many bankrupt cases, people took car loans, and suddenly found they can’t pay.
- Mr Leong Sze Hian, a former president of the Society of Financial Service Professionals"
> I also think it might be prudent to slowly scale back CPF use in housing
> and loan tenor, and to further restrict foreign buying in our properties.
They will want to anchor as many people here. I dont think they will come up with anything radical in this area.
The car financing was originally 30% down payment, max 7 year loan. They relaxed it to 10 years, and probably did not track the number of borrowers.
This was mistake #1.
With the car company and bank combining to tug at the consumer purse strings, it is loan all the way.
They fail to see this.
Hence the drastic measure.
Well, typical of the today's ruling party... our first generation leadership is much more prudent and careful in crafting policies...
The prudent way of assessing if one can afford something is always to see if you need to take up a big loan. In olden days, people literally used to save up and then buy something. Nowadays with cheap credit facilities available and with people's mindset changing, it is no wonder that everyone's jumping into the debt pool and becoming more leveraged.
Just ask around - it is not surprising to find families with young children shouldering two (yes two) mortgage loans as well as a car loan.
(05-03-2013, 05:34 PM)natnavi Wrote: [ -> ]800 people in the past four years is a small number for the government to react so much. There must be other reasons why the government to implement this.
Regardless, I welcome this move, and I hope that prices will go down soon.
(Vested. I have no car but I am intending to buy one in the near future.)
what about the huge social ills from the 2 casinos...every year, i bet ten of thousands residents visited them and lost money? is that considered prudent spending?
i think the other undisclosed underlying reasons for the car loans restriction is that maybe there were too many complaints from the riches (be it local or foreign) that the roads here are too crowded & inefficient for their luxury cars! remember this maybe considered a 'tax haven' place to attract riches, how can their cars slow to a tortories or caught in a jam?
(05-03-2013, 06:25 PM)Contrarian Wrote: [ -> ]> I also think it might be prudent to slowly scale back CPF use in housing
> and loan tenor, and to further restrict foreign buying in our properties.
They will want to anchor as many people here. I dont think they will come up with anything radical in this area.
The car financing was originally 30% down payment, max 7 year loan. They relaxed it to 10 years, and probably did not track the number of borrowers.
This was mistake #1.
With the car company and bank combining to tug at the consumer purse strings, it is loan all the way.
They fail to see this.
Hence the drastic measure.
Well, typical of the today's ruling party... our first generation leadership is much more prudent and careful in crafting policies...
Yes HDB was created to anchor the immigrant society so that they have something to fight for. Now almost 50 years later almost everyone has a home here. But the principle should remain the same: provide an affordable primary house. Other than that should try to clamp down on speculative demand
Yes I wonder who is the idiot who changed from 7 years to 10 years. IIRC it was so that people can pay for the rising COE. Talk about putting the cart in front of the horse. They should have done the opposite and reduce from 7 years to 5 years back then. Now the policy is right but so much pain because of that idiot. Feels like the property market fast forwarded. (hint: I think more tears coming) Policy making is so important, whether you care or not.
> Yes HDB was created to anchor the immigrant society so that they
> have something to fight for. Now almost 50 years later almost everyone
> has a home here.
The building of HDB flats is possibly the BEST EVER POLICY our 1st generation ministers made. They also made AFFORDABILITY a priority.
This generation ministers came up with market pricing... calibrating mature estate flats and applying 'discount' in non mature estates.
But the principle should remain the same: provide an affordable primary house. Other than that should try to clamp down on speculative demand
Yes I wonder who is the idiot who changed from 7 years to 10 years. IIRC it was so that people can pay for the rising COE. Talk about putting the cart in front of the horse. They should have done the opposite and reduce from 7 years to 5 years back then. Now the policy is right but so much pain because of that idiot. Feels like the property market fast forwarded. (hint: I think more tears coming) Policy making is so important, whether you care or not.
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