The temporary 60-day concession will begin on the 6th of April 2013.
The Monetary Authority of Singapore (MAS) announced that the recent car loan restrictions will be lifted from 6th of April till 4th of June. All interested buyers can now purchase a used car with the previous loan arrangement prior to the implement of the loan restrictions that were introduced on Feb 25.
According to MAS, used cars registered as on or before March 4 this year will be eligible for this temporary concession, which took effect last 6th of April. This pool comprises less than 7,000 cars, it added.
This temporary lift on the restriction was set to relieve the struggles of second hand car dealers and hopefully aid them with the clearing of their used car stocks.
Dealers have up to seven days to register used cars under the Land Transport Authority’s Temporary Transfer Scheme.
Explaining its decision to temporarily lift the loan curbs for used cars, the MAS said: “The inventory of used cars acquired by dealers at relatively high inbuilt Certificate of Entitlement values before the introduction of the financing restrictions has made it particularly challenging for them to adjust to the new market conditions.”
It said this will help the industry adjust to the new conditions, and expects that much of the 7,000 cars can be cleared within the two-month period.
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 added 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.
The Ministry of Trade and Industry (MTI) also issued on Friday new regulations to ensure that MAS’ financing curbs on the purchase of cars apply to all entities that finance car purchases, including those that are not regulated by MAS.
The Ministry of Trade and Industry (MTI) also issued on Friday new regulations to ensure that MAS’ financing curbs on the purchase of cars apply to all entities like credit companies and others that finance car purchases, including those that are not regulated by MAS.