Budget 2013
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janet_lee88:
Hmmm ... I doubt it. We are a very funny group of people. Took so many rounds of drastic measures to cool property market. Still we mop up new suburban launches like there is no tomorrow. Only foreign investors are backing off. For us, the more it's out of our reach, the more we want it. So many will do creative domestic budgeting and buy our dream cars. COE prices won't change too much after the initial shakeup.
Having rocket high COE is not the solution.sleepy:
Perhaps it's a sign that the govt is hearing us... because existing COE price is way too high! With this, COE price will definitely decrease sharply
However, I think 2nd hand car finance scheme should not be as stringent as new car. Afterall, 2nd cars are not increasing existing car population
The new system is better...have money then you buy. But if we already have a car, of course we can say this...the first time buyers are the ones affected.
Really hope COE prices will decrease. -
Mawar:
I think there is a slight diff. A lot of ppl think property is sure win, esp with the 6.9 million population projection. Cars are definitely depreciating assets. Its really stupid to pay so much for a car. (Ok easy for me to say, my COE was $8k, the whole car was only $46k).
Hmmm ... I doubt it. We are a very funny group of people. Took so many rounds of drastic measures to cool property market. Still we mop up new suburban launches like there is no tomorrow. Only foreign investors are backing off. For us, the more it's out of our reach, the more we want it. So many will do creative domestic budgeting and buy our dream cars. COE prices won't change too much after the initial shakeup.janet_lee88:
Having rocket high COE is not the solution.
The new system is better...have money then you buy. But if we already have a car, of course we can say this...the first time buyers are the ones affected.
Really hope COE prices will decrease.
Having said that, I have close family members who die die must have a car, even though their household income is less than SG median, and really have no need for a car. And the car cannot be my cheapo type of car ok..... :slapshead: -
Dora1:
But this will cause a loophole. As long as I can pay the 50% down, then I'll buy the car. Then I'll sell it 6 months later at the same or higher price to someone who cannot afford the 50% down. Free car for 6 months + a few hundred or thousand dollars pocket money, not bad mah better than letting the money sit in the bank and earning close to zero interest.sleepy:
Perhaps it's a sign that the govt is hearing us... because existing COE price is way too high! With this, COE price will definitely decrease sharply
However, I think 2nd hand car finance scheme should not be as stringent as new car. Afterall, 2nd cars are not increasing existing car population
If the person can't afford 50% down then how he buy from u at higher price? -
Because can take more loan?
But thought once the car is out of showroom, price already drop. Like that I also cant tell if can make money. -
hquek:
If MAS allows unlimited loan for 2nd hand car, I'm sure there will be enterprising 2nd hand car dealer who is able to match ppl who wants to buy new cars but can't pay the 50% down, but can take 100% loan, with ppl with cash. The person with enuf cash just plonks down the 50% down, drive the car out to the 2nd hand car dealer direct. The other guy takes 100% loan for the now 2nd hand car, and pays the 1st car a few hundred dollars and a few hundred dollars to the dealer. Win win situation.Because can take more loan?
But thought once the car is out of showroom, price already drop. Like that I also cant tell if can make money.
That's why MAS is right to extend the loan restriction to 2nd hand car, if not the above scenerio can happen. -
Taking full loan to pay for the car is really expensive. So this new ruling does make sense. If cannot afford, sorry to say, don’t think of it…I know it is selfish but monthly payments are no joke.
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There are people who rely on leverage in order to afford consmption goods. The tightening of credit is a step in the right direction to prevent financial suicide. We do not know how long or how deep the global slowdown will be or how affected we will be and it will be prudent to live below one’s means.
This tightening of the car loan may not seem to be popular but if jobs should be lost duly, it should be able to prevent some cars from being tolled away. -
so gov is going to make cars to be an even more luxury item in SG…
but think again if lesser ppl (minus off those who can’t fork out 50% cash) bid for coe the price will drop, the car price will drop too and this will only benefit those who are cash rich… perhaps this is one way gov wants to please the middle class (or maybe upper class)… -
These people should watch the Can I Afford It segment on The Suze Orman Show. In the words of Suze Orman,
\"Are you crazy? You are so denied!\"
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They need to balance the dual objectives of economic stability and meeting people’s aspirations and they have always been advising financial prudency. I do know some people who are living beyond their means through leverage with no savings at all. Their concept of cost is the amount they need to pay at each instalment, not the aggregate indebtedness.
We were very much spared during the 2008 crisis and it was followed by loose credit. But MNCs have done most of their cuts in Europe and America, not much left to cut. Am playing devils’ advocate that they will need to cut in Asia if market conditions do not improve duly.
Perhaps, in a few years time, with the benefit of hindsight, we may be grateful for a more restrictive credit regulations?
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