In a flip flop of the recent MAS loan restrictions, it was announced today that MAS will lift the loan restrictions for used cars for a period of 60 days for the purchase of used cars that were already in the dealers' inventory before the loan restriction announcement on Feburary 25th.
Dealers had up to seven days to register used cars under the LTA Temporary Transfer Scheme which means that used cars registered before 4th March this year are eligible for the concession.
MAS has also earlier announced that the restrictions will apply to all entities that finance car purchases including those that are not directly under the MAS's purview.
The Ministry of Trade and Industry also issued new regulations today to ensure that MAS’ financing restrictions on the purchase of cars apply to non-MAS regulated entities as well. The Ministry of Law has also today required licensed moneylenders to comply with MAS’ financing restrictions.
Demand in the used car market has also fallen sharper compred to new cars.
MAS said in a statement that it has taken into account feedback from the Singapore Vehicle Traders Association on the state of the used car industry. It added that while it is not possible to relieve the industry from the impact of the financing restrictions on an ongoing basis, the two-month relaxation of the rules for its pre-existing inventory will help the industry adjust to the new conditions.
MAS also said that it will continue to monitor developments in the car market and COE premiums, and will recalibrate the financing restrictions for new and used cars when appropriate.