Budget 2013: New Tiered Tax Rates for Cars

[Arshavin]

coe... going for a quick roller coaster ride!

 

tigershark, u estimate how much will the coe go south?

[TaZenOrYeeOr]

....       ....yup...

 

....properties...cars...yup....

 

....        

[TaZenOrYeeOr]

..those who booked last year...or last month 4 tt matter ...but cars havent arrv...haven't register ones...how?

 

...     ..

 

...      

[Tanzy]

..those who booked last year...or last month 4 tt matter ...but cars havent arrv...haven't register ones...how?

 

...     ..

 

...      

 

I think option to break contract because loan cannot get.

[TaZenOrYeeOr]

I think option to break contract because loan cannot get.

...like properties izzit it....how mny returned their units cos of the increased...'Needed" measures/tax..?

 

....    ..

 

...fair?

[Tanzy]

If a person buys a $180,000 car with 70% loan, he only needs to shell out $54,000 cash.

 

With new measures, even if COE crashes by $50,000 (which is massive!), the new car price will be $130,000 but downpayment is up $65,000 now; $11,000 more.

[Maeryn]

I think option to break contract because loan cannot get.

 

even tho cars haven't arrive but they might have secured COE...how how?

[Tanzy]

...like properties izzit it....how mny returned their units cos of the increased...'Needed" measures/tax..?

 

....    ..

 

...fair?

 

I think it might be better for buyer to break the contract and sit on the fence for a while to watch what happens. Chances are higher that prices might come down. The last thing you want is to take 50% loan on a vehicle that is over priced.

 

Dealers might resort to big overtrades, like in the good old days.

[TaZenOrYeeOr]

.....if say there's sum advance notices...say 6 months..9 months.. izzit tt fairer....in any increases..be it tax or wadever la.....?

 

...tinking out loud onli ...raining nite...emo liow....      

[Tanzy]

even tho cars haven't arrive but they might have secured COE...how how?

 

COE can keep for one year.

[Tigershark]

..those who booked last year...or last month 4 tt matter ...but cars havent arrv...haven't register ones...how?

 

...     ..

 

...      

i m going to guess that most distributors will eat the difference as the new ARF should hv marginal impact for majority of cars 'on the way'. not sure for the horse or bull type though

[Maeryn]

COE can keep for one year.

 

Yay but if COE is going to crash then there's no point to keep it..this will be such a mess.

[TaZenOrYeeOr]

i m going to guess that most distributors will eat the difference as the new ARF should hv marginal impact for majority of cars 'on the way'. not sure for the horse or bull type though

...dude...the rich or cash rich...r not effected...tt...eh...badly la.....

 

..sum ppl depend on cars 2 work....  

[Tigershark]

...dude...the rich or cash rich...r not effected...tt...eh...badly la.....

 

..sum ppl depend on cars 2 work....  

there is still a 2nd hand market.

[Tigershark]

reading the MAS news, if implementation is effective for new car loans from 26feb, then any loan signed before should still be valid under previous loan system.

[Tanzy]

Yay but if COE is going to crash then there's no point to keep it..this will be such a mess.

 

Deposit for COE bidding is $10,000. If COE drops more than that, then forfeit the bid and get a new piece.

[Maeryn]

there is still a 2nd hand market.

 

the loan quantum n tenure will still be affected.

[Tanzy]

reading the MAS news, if implementation is effective for new car loans from 26feb, then any loan signed before should still be valid under previous loan system.

 

Correct. So in house loan office working OT tonight. SE running all over the place to get papers signed. Rain not helping.

[Maeryn]

Deposit for COE bidding is $10,000. If COE drops more than that, then forfeit the bid and get a new piece.

 

 

$10K = 1 Hermes Lindy...*OUCH*

[Tigershark]

the loan quantum n tenure will still be affected.

in the old days, the system was 30% cash and 7yrs loan. if ppl then, cud afford to buy a car. i dun see why it is an issue today.

is it more bcuz, tdy, we all expect to own a car?

i think we hv to recognise any system has its limitations.

[AMKMerc]

The Monetary Authority of Singapore (MAS) will place a cap on motor vehicle loans from Tuesday Feb 26.

For a motor vehicle with open market value that does not exceed $20,000, the maximum loan-to-value is 60 per cent of the purchase price, including relevant taxes and the price of the Certificate of Entitlement.

For vehicles with an open market value of more than $20,000, the maximum loan will be capped at 50 per cent.

In addition, the tenure of a motor vehicle loan will be capped at 5 years.

In a statement on Monday, the MAS said: "The financing restrictions are necessary to encourage financial prudence among buyers of motor vehicles. In this prolonged environment of very low interest rates, there is greater risk of buyers over-extending t hemselves on motor vehicles."

The financing restrictions will not apply to loans for the purchase of commercial vehicles or motorcycles.

 

Sounds like good news for drivers who feel that there are too many cars on the road, the numbers may reduce.. I think I may have to extend my COE once my current one ends.

[Tigershark]

tigershark, u estimate how much will the coe go south?

wah bro.. this one i cannot crystal ball gaze..

but i hantam 30% drop without proof or reason..

[Tanzy]

Sounds like good news for drivers who feel that there are too many cars on the road, the numbers may reduce.. I think I may have to extend my COE once my current one ends.

 

Number of cars on the road is not determine by car prices in Singapore but by COE numbers. As much as I wish for car population to drop, with current registration figures expected this year, it will still be net growth! Expect more cars on the road and the bias might be towards more expensive and exotic cars because most of the buyers of these cars are not affected much by the latest measures.

[Tigershark]

Sounds like good news for drivers who feel that there are too many cars on the road, the numbers may reduce.. I think I may have to extend my COE once my current one ends.

actually, i feel that it has NO impact on reducing number of cars on the roads. roads will continue to remain congested as the annual COE quota is still projected with growth. (what is it now? 1.5%?)

car owners will hang on to their cars.

coe pricing will readjust to the new gameplan.

if coe crashes, those of us stuck with the high loan at current prices will remain stuck

[Maeryn]

Either drive the car till the 10th year or scrap the car with high COE provided the returns can cover loan balance.