Loan curbs for used cars to stay for now: MAS

 It seems like the loan curbs for used cars are here to stay -- at least for awhile.

Despite representations from used car dealers, the Monetary Authority of Singapore (MAS) said on Wednesday that the financing restrictions remain relevant as it encourages financial prudence among consumers and exerts a moderating influence on COE prices.

Under current rules that took effect in late February, used-car buyers can borrow only up to 60 per cent of the car's purchase price, with the maximum period of the loan capped at five years.

The Singapore Vehicle Traders Association met MAS on Tuesday to call for a review of the curbs.

The association said many dealers are suffering, with business dropping by at least 50 per cent.

It is proposing that buyers be allowed to borrow up to 80 per cent of the purchase price, and for the loan to be serviced for up to eight years.

MAS said in a statement on Wednesday that it appreciates the feedback, emphasising that the financing restrictions are not permanent.

It also added that it will continue to monitor the situation and review the calibration of the restrictions in line with market conditions.

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Second hand car dealers will have to rough it out under the loan curb conditions, but the severity of the situation seems to be exaggerated as we all know how these dealers work. It will be good that the rogues close down for good.

Racing on AYE

Amazing stuff, when such a big group of highly tuned cars taking the expressway like a racing track. The red Honda Civic has got great balls and skills to have made that lane cutting maneuver.

HOWEVER, this is illegal. No matter how skillful you are, the rules of the road have to be obeyed at all times. By racing illegally on public roads, you're endangering yourself and every other road users' lives. Such actions must be condemn and the traffic police have to clamp down these racers.

How sending a "Brian O'Conner" as an undercover?

COE prices end higher across all categories

The gap in prices narrowed between big and small car Certificates of Entitlement (COEs) on Wednesday in the latest bidding exercise, as premiums rose across the board.

Wednesday's bidding is the first since an 8-per cent increase in COE quotas for the coming six months kicked in.

Premium for small cars went up by S$1,567 to S$75,556.

The COE price for big cars rose by S$1,211 to close at S$77,600.

The open category premium also increased S$1,187 to hit S$77,989.

The COE price for commercial vehicles saw the biggest jump of S$3,215 to reach S$68,251.

Motorcycle COE price went up by S$80 to end at S$1,792.

Car dealers Channel NewsAsia spoke with were not surprised by the price increases, and expect premiums to hover around this level in the months ahead.

Raymond Tang, honorary secretary of Singapore Vehicle Traders Association, said: "It's expected that (the prices in) all categories should be up, because the thing is that 8 per cent increase for the next six months is not enough to supply. COE of all categories have been suddenly moving up tremendously because of the demand for the new cars and that's why I think that it will still be going up."

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The demand for new cars is not letting down. It makes one wonder where did all these people come from huh? Having to afford a 40% downpayment in cash at least and financing the loan within 5 years.

Racing in KPE tunnel - Hyundai & Merc

What a close shave, looking like a scene out of the Hollywood movies. Great recovery by the Hyundai by the way. Good job in capturing these actions, the traffic police can better nab these reckless drivers with such an evidence.

Road Idiot - SFZ2848A

What do you think of such drivers in Singapore roads? Being totally impatient and full of rage. With the prominence of DVR, I would think most drivers will be more subdued. However it seems to be the opposite.

Used car dealers urge authorities to review car loans curbs

The Singapore Vehicle Traders Association which represents the interests of over 400 used car dealers here is renewing its call for a review on car loan curbs.

It said many dealers have seen sales drop by between 30 and 80 per cent since the 60-day reprieve period ended in early June.

Used car dealers sold most of their stock of about 7,000 cars during the 60-day reprieve period from April 6 to June 4.

Before the loan curbs kicked in, buyers used to be able to take up to 100 per cent loans for car purchases.

Now that they are unable to do so and dealers are feeling the pinch once again.

Raymond Tang, honorary secretary of Singapore Vehicle Traders Association, said: "In July, the situation is very bad. We have made a survey and majority of the dealers are not selling (well)."

Under current rules, buyers of both new and used cars can only get a loan of up to 60 per cent.

The loan period is capped at five years, down from 10 years.

Dealers said sales have also been affected by a smaller supply of used cars in the market as more people hold on to their cars.

Vincent Wong, director of First Automobile Premium, said: "We have actually experienced as much as a 30 to 40 per cent of depletion of sales and generally to us, it is quite an extensive impact. For the dealers to recover their stocks and replenish their stocks, it is quite difficult at this point of time.

Mr Wong added: "For many of these people, they are not able to change and so they are holding on to their cars. The dealers are also very careful in the valuation of cars. They cannot be buying too high and if they do, it will put themselves in a big financial difficulty."

The loan curbs were introduced to encourage financial prudence.

The Singapore Vehicle Traders Association said Certificate of Entitlement (COE) prices are still high in recent bidding rounds.

Prices for both small and big cars were over S$70,000 in the latest bidding round.

The association has proposed that used car buyers be able to borrow up to 80 per cent of loan which can be serviced over eight years. It said the move will help ease COE premiums.

Mr Tang said: "In this way, I feel that it might help to stabilise the COE premiums because they might pull a small group of people from buying a new car to the used car. If there is a small group of people coming over, that might also slow down the demand on the new car.

"Eighty per cent is quite a fair bit because in terms of used car, it is more towards the mass market and middle and lower income people. I think that telling them to fork out at one go of 40 to 50 per cent of down-payment is might be a very heavy amount for them."

The COE quota for the next six month period starting from August this year to January next year will be about eight per cent higher.

However, dealers said it will unlikely to have much of an impact and bring down COE prices significantly."

The association intends to submit its proposal to the Monetary Authority of Singapore this month.

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I'm surprised these dealers are still alive to make some noises. After the 60-day rule suspension, I had expected them to fold up or switch to other automobile related business but they actually held on. And now they want MAS to look like a joke by further amending the rule. Will MAS give in? It will be interesting to find out the result of the appeal.

Honda to set up racing base in Milton Keynes

Japanese automaker Honda said it will build a European racing operations base in Milton Keynes ahead of its return to Formula One in 2015.

Honda said in May that it will return to the sport as an engine supplier to McLaren in a bid to revive their championship-winning partnership.

On Friday it said it will build a new facility in Milton Keynes that "will rebuild and maintain the power units developed at Honda (research and development) centre" in Japan.

"The UK is an ideal location; it is the home of McLaren, many F1 suppliers are UK based and with seven of the 19 races taking place in Europe (in 2013)," Honda said in a statement.

The Japanese automaker pulled out of F1 after the 2008 season, ending an involvement that began in the 1960s, to cut costs during the economic downturn that ravaged Japanese exports to the United States and Europe.

It sold its team to former principal Ross Brawn the next year.

A recent change in F1 rules, promoting the use of environmentally friendlier turbo engines, has made the comeback decision easier because Honda could readily transfer the technology to its commercial vehicles.

The McLaren-Honda alliance conquered F1 from 1988 to 1991 with Ayrton Senna and Alain Prost at the wheel.

Honda started racing in F1 as a full-fledged team in 1964, and stayed until 1968. During that time, it won two races.

Then, as a supplier of engines to other teams including McLaren, Williams and Lotus, it raced from 1983 to 1992 and won 69 races.

After an eight-year hiatus, Honda returned as an engine provider and then part-owner of the BAR team from 2000 to 2005. In 2006 it took full control and renamed it Honda.

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Welcoming news from the Formula 1 scene after all the bad press about the safety issues regarding Pirelli tyres. Honda will not have its own team, unlike when it last pulled out of the sports in 2008. Instead, they will supply the turbocharged engines to teams like McLaren, one which they have past glories with in the late 80s and early 90s. It will be very interesting to see how Honda can help McLaren boost its position on the field.

Valets say cases of drunk patrons driving off are common

The scourge of drink driving looks like it is not going away any time soon, if The New Paper’s checks with valets at several nightspots are anything to go by.

Last weekend, we spoke to some of them at the Tanjong Pagar, Orchard Road and Boat Quay areas.

Five valets said it was not unusual to encounter clubbers who insist on driving themselves home, even when they had drunk too much.

Said a valet working in a club at Tanjong Pagar, who wanted to be known only as Mr Ameen: “We have customers who insist on driving themselves home after clubbing. I honestly don’t know why they take the risk. We charge them only $50 to drive them back, but if they refuse, we can only remind them that it is against the law as we can’t force them.”

Last year, the police arrested 2,917 people for drink driving.

This is a 6.6 per cent increase compared to 2,735 in 2011.

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This is a very disturbing trend to reveal as we all know how drink driving can endanger other road users other than the driver himself. It is a very selfish act which should not be tolerated. It seems that people will only obey the law when they see the flashing red/blue lights.

More COEs to be made available from August 2013 to January 2014

More Certificates of Entitlement (COEs) will be available during the six-month period from August this year to January 2014.

The Land Transport Authority (LTA) said that it has set the quota at 20,825.

This is 1,562 more than the 19,263 made available from February to July this year.

For small cars, 728 COEs will be made available every month, up from 667 in the previous six-month period.

For big cars, the quota is 746 per month, up from 605.

The open category will have a monthly quota of 522, up from 476 in the previous six-month period.

For goods, vehicles and buses, 514 COEs will be available, up from 451.

The only category that will have fewer COEs is motorcycles. There will be 961, down from 1,012 in the previous six-month period.

On a monthly basis for all categories, 3,471 will be made available, compared with the previous quota of 3,211.

Bidding under the new quota will start with the August 2013 First Open Bidding Exercise.

The COE quota consists of several components:

• 0.5 per cent vehicle growth based on the vehicle population as at 31 December 2012
• Replacement COEs for vehicles de-registered between January and June 2013
• Adjustments for change in taxi population, expired COEs and over-projections of vehicle de-registrations in 2008/2009

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A pretty small increase for the next 6months. I reckon this will not make much of a difference in the coming COE bidding prices. Demand for cars is still very high.

Hit & Run Lexus SGD5233H

It is a very serious offence to hit & run from an accident in Singapore. This accident further emphasize the importance and a need to install a in-car DVR to prevent the culprit from running away. Hopefully the driver of the video poster is alright and will get justice served.