MAS Eases Rules on Motor Vehicle Financing

Posted by Oneshift Editorial Team
26 May 2016
MAS Eases Rules on Motor Vehicle Financing

The maximum LTV (loan-to-value ratio) will be raised from 60% to 70% for vehicles with OMV (open market value) less than or equal to $20,000. 50% to 60% for vehicles with OMV greater than $20,000. Maximum loan tenure raised from 5 to 7 years.

The Monetary Authority of Singapore (MAS) today announced that the maximum loan-to-value (LTV) ratios and loan tenure allowed for motor vehicle loans will be eased, although restrictions will remain in place for the long term. The adjustments follow the sustained moderation in Certificate of Entitlement (COE) premiums and in resulting inflationary pressures over the last three years.

In 2013, MAS introduced restrictions on motor vehicle loans by financial institutions, to moderate the demand for cars and COEs and alleviate inflationary pressures. The measures also served longer term purposes: to encourage financial prudence and to support efforts to promote a car-lite society.

Since then, the contribution of private road transport (excluding petrol) to CPI-All Items inflation has eased from +1.3% points in 2011-2012 to -0.5% point in Q1 2016. In addition, outstanding motor vehicle loans have declined by 32% from $14.13 billion in Q1 2013 to $9.55 billion in Q1 2016.

The allowable vehicle population growth rate remains capped at 0.25% per annum. However, COE quotas have expanded in recent quarters alongside an increase in de-registrations.1

Taking these developments into account, the rules on motor vehicle loans will be revised as follows with effect from 27 May 2016: 

 

* LTV is the amount of the loan expressed as a percentage of the purchase price of the motor vehicle. The purchase price includes relevant taxes and price of the COE.


The Ministry of Trade and Industry will apply the revised financing restrictions to non-MAS regulated entities which extend motor vehicle financing on a hire-purchase basis. The Ministry of Law will also require licensed moneylenders to comply with the revised financing restrictions.

Mr Ong Chong Tee, Deputy Managing Director, MAS, said, “In 2013, when we introduced the measures, our immediate aim was to help restrain escalating COE premiums and consequent inflationary pressures. Since then, demand conditions have moderated and it is timely to ease the measures. MAS will, however, continue to have the LTV and loan tenure framework in place for the long term to promote financial prudence and help support the promotion of a car-lite society.”


Sell Fast With Ease - SwiftQuote

With SwiftQuote, you get:
  Best value for your car    A peace of mind when selling    Fast sale from start to end

HIGHEST PRICE FOR YOUR CAR

Best offer with no obligations.
Start Now!

I agree to the collection, use and disclosure of my personal data by Carousell and/or such other third party (as may be necessary) and to be contacted (via email, phone call and/or text message) for any purposes in connection with the application of and transaction of the vehicle, in accordance with the Personal Data Protection Act 2012 and Carousell's Privacy Policy.

Service is good and efficient. Price is absolutely good

Lee Derek - 16 hours ago

Great service offered by Angie Ng..got a better price offer ..fast quote received..follow up service also great.keep it up

philip - 16 hours ago

Thanks SwiftQuote for the amazing result. By using its platform, I'm able to get higher price than others. Will continue to use once my car is due again. Highly recommended.

Mr Wong - 4 days ago

Thank you for the service......my car transaction was smoothly settled.....Will recommend your company to friend and relatives if they need to sell, buy or scrap their cars.

Rahman - 2 weeks ago

Thank you SwiftQuote for helping to sell my car. The staff is very dedicated and the process was very smooth. I managed to close the deal in less than a week and got a good price for my car.

Yvonne Low - 2 weeks ago

Nice and smooth transaction.

Sheik - 2 weeks ago

Very fast and efficiency procedure.Seller are Experience and give high quote.Thanks again.

Mikailadam B Abu Bakar - 2 weeks ago

Angie from SwiftQuote was very helpful. However, the dealer who bought my car was on the lower side when it came to punctuality and professionalism.

Diwakar P - 3 weeks ago

The service is excellent, fast and hassle free.

Kwan Wei Ming Ignatius - 1 month ago

Good platform! Really swift and efficient. Sold my cars between days ..will use this platform in future.

darrell - 1 month ago
News
319
319
22 Jul 2021
Posted in News
News
576
576
8 Jul 2021
Posted in News
News
506
506
14 Jun 2021
Posted in News
News
432
432
9 Jun 2021
Posted in News
News
707
707
19 May 2021
Posted in News
News
1,517
1,517
3 May 2021
Posted in News
News
1,437
1,437
29 Apr 2021
Posted in News
News
1,406
1,406
26 Apr 2021
Posted in News
News
646
646
21 Apr 2021
Posted in News
News
1,622
1,622
17 Mar 2021
Posted in News
News
1,877
1,877
3 Mar 2021
Posted in News