Budget 2013. What now?

Buyers who are well and truly priced out of the car market have a number of alternatives. There are car-sharing schemes for short-term car usage, as well as longer-term lease and buyback arrangements. These require minimal cash payments upfront and provide almost total transparency with regard to costs. However, the prices of such schemes have yet to fully internalize the effects of the recent policy measures and may be subject to review in order to align these programs with the government’s overall regulatory intent.

Regardless of the reasons for desiring a car buyers should exercise prudence with their financial undertakings. Buyers with a genuine need for a car may downgrade their purchases to cheaper models, while owners of cars whose replacements are affected by the increase in ARF rates are likely to hold onto their vehicles for longer.

The current rule changes have still left a number of regulatory possibilities unaddressed; such as a potential needs-based system for the allocation of COEs, a change in transport policy resulting in higher (or lower) vehicle growth rates, changes to road and petrol taxes and even revised parking rates. Given the dynamic nature of the local motoring industry, we expect dealers, the government and drivers to adapt rapidly to any changes as margins become thinner and inflationary pressures loom overhead.

We have upgraded our car loan calculators to comply with the new restrictions by the Monetary Authority of Singapore.

Please find the Car Loan Calculators using these links:
New Car Calculator : http://www.oneshift.com/used_cars/car_loan.php?adid=33016
Used Car Calculator : http://www.oneshift.com/new_cars/carloan.php?pid=3283

• Budget 2013: Motoring Implications
• MAS to place cap on car loans from today
• Upgraded Car Loan Calculator to comply with MAS Restrictions

Credits: