Budget 2013: Motoring Implications

Budget 2013: Motoring Implications

OneShift Editorial Team
OneShift Editorial Team
28 Feb 2013

OMV

ARF Tax Rate

Example

OMV

Current ARF Payable

New ARF Payable

Percentage Increase in ARF

First $20,000 of OMV

100% of OMV

Ford Focus

$13,682

$13,682

$13,682

0%

Next $30,000 of OMV

140% of incremental OMV

BMW 320i

$39,486

$39,486

$47,280

$20,000 (100% of first $20,000) + $27,280 (140% of remaining $19,486)

19.7%

Remaining OMV above $50,000

180% of incremental OMV

Ferrari 458 Italia

$325,203

$325,203

$557,365

$20,000 (100% of first $20,000) + $42,000 (140% of next $30,000) + $495,365 (180% of remaining $275,203)

71.4%

The new rules will come into effect after the first Certificate of Entitlement (“COE”) bidding exercise in March.

New Car Loans Regulations

With effect from 26 February 2013, loans will be capped at 60 percent of the purchase price of motor vehicles for OMVs up to $20,000.

For vehicles with OMVs greater than $20,000 the loans will be limited to 50 percent of the purchase price.

The tenure for the loans is now capped at 5 years. These are marked changes from the prior availability of 100 percent loans for a loan period of up to ten years.

Both these new policy measures will likely result in a reduced demand for cars and a corresponding deflationary effect on COE prices, as the government seeks to curb runaway car prices and encourage prudent spending without an over-reliance on bank financing.

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

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