Singapore MAS introduces loan to value measures for cars!
Discussion
Not sure if you all saw the news and are still in shock, or may not have read it yet... seems like the MAS have really frozen up the car market for a while with little to no notice period it was coming:
http://www.stcars.sg/guides-articles/motoring-news...
Got to love the MAS.
James
http://www.stcars.sg/guides-articles/motoring-news...
Got to love the MAS.
James
I was given a leaflet in the street last week in kl for Peraduas, one of the offers was 190Rm down and 10 year loan, so I think there is a need for some financial prudance being impossed.
There is a Myvi Extreme where I work in Sarawak, that had an accident, serious damage to the fiber glass from skirt, spliter thing, never been fixed and I see the car every day for the last 6 months, which indicates that the car is uninsured so any thing that stops people buying cars they can't aford to insure has some merit in this region.
There is a Myvi Extreme where I work in Sarawak, that had an accident, serious damage to the fiber glass from skirt, spliter thing, never been fixed and I see the car every day for the last 6 months, which indicates that the car is uninsured so any thing that stops people buying cars they can't aford to insure has some merit in this region.
Its definitely an interesting one, the car market needed cooling here as so many people are over leveraged but at the same time, killing the industry like this will cause a lit of people to loose their jobs!!
on the plus side, COE's are dropping so may pick up another nice classic and renew the COE at an affordable price in 6 or 12 months!
on the plus side, COE's are dropping so may pick up another nice classic and renew the COE at an affordable price in 6 or 12 months!
Berw said:
I was given a leaflet in the street last week in kl for Peraduas, one of the offers was 190Rm down and 10 year loan, so I think there is a need for some financial prudance being impossed.
Scary...I also find it amusing, in a wry sort of way, that a Myvi SE Manual, on the road, is cheaper in the UK than in Malaysia...
Absolutely - I can see why they do it.
And I thought some of the worst excesses of people being sold long-term unsecured loans on cars had been curbed last year, but I guess not. It's pretty much the motoring equivalent of sub-prime mortgages, though hopefully without the same global repercussions...
There may be no global repercussions, but you are right there will be local ones, and I have 4 road cars, so the impact on me of any price allignment in 2ndhand cars will be bad enough.
The banks have a policy of not selling repossed cars but leaving them to rot, as long as they do this, we are OK, as this they never need to recognise the bad debt as toxic, because they can keep the car at an inflated value in thier books, write the debt off over say 3 years, but write the car off over 10 then the bad debt is covered by the value of the asset securing it no need to take a hit in the P and L.
The banks have a policy of not selling repossed cars but leaving them to rot, as long as they do this, we are OK, as this they never need to recognise the bad debt as toxic, because they can keep the car at an inflated value in thier books, write the debt off over say 3 years, but write the car off over 10 then the bad debt is covered by the value of the asset securing it no need to take a hit in the P and L.
There may be no global repercussions, but you are right there will be local ones, and I have 4 road cars, so the impact on me of any price allignment in 2ndhand cars will be bad enough.
The banks have a policy of not selling repossed cars but leaving them to rot, as long as they do this, we are OK, as this they never need to recognise the bad debt as toxic, because they can keep the car at an inflated value in thier books, write the debt off over say 3 years, but write the car off over 10 then the bad debt is covered by the value of the asset securing it no need to take a hit in the P and L.
The banks have a policy of not selling repossed cars but leaving them to rot, as long as they do this, we are OK, as this they never need to recognise the bad debt as toxic, because they can keep the car at an inflated value in thier books, write the debt off over say 3 years, but write the car off over 10 then the bad debt is covered by the value of the asset securing it no need to take a hit in the P and L.
Would love to know how many cars get repossessed each year. My (very scientific...) guess is 'quite a few'.
And regardless of the questionable logic behind the banks approach to bad debts, it's hardly the most environmentally friendly of solutions...
And regardless of the questionable logic behind the banks approach to bad debts, it's hardly the most environmentally friendly of solutions...
Edited by Nick M on Monday 18th March 07:38
Nick M said:
Scary...
I also find it amusing, in a wry sort of way, that a Myvi SE Manual, on the road, is cheaper in the UK than in Malaysia...
more scary... i am looking for a commuting rollerskate, and for pure nostalgia i fancy a Myvi! Maybe we shoudl start importing them back to Malaysia, interesting carbon footprint.. I also find it amusing, in a wry sort of way, that a Myvi SE Manual, on the road, is cheaper in the UK than in Malaysia...
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