Budget 2013: New Tiered Tax Rates for Cars

[Ah Bui]

Now they know the meaning of 做蛇 in the year of snake....

[Tanzy]

Maybe soon they will have. 1st time car owners then 2nd car owner tax.. like property...hahah..or maybe start charging different COE of different income group....but honestly how does it help people who needs the car when you need to pay more money down for it and service a much higher loan?

Need to pamper my car liao..need to drive 20 years now.....siao liao...should buy 4 door. next time got kids need to put in car boot..

LTA won't do anything about second or subsequent cars because these are cars not on the road, so better for traffic congestion. A driver can only drive one car at a time. LTA motive is to reduce number of cars on the road, on the long run, but maintain profits from COE and ARF. They are not concerned with fair distribution of COE. Singapore is not a communist state.

No need COE by income, they are doing tax by car pricing which is fairer. Spend more, pay more.

A person's needs will always be at odds with financial ability. It is a tug of war. I think 50% over 5 years is prudent but overly strict. I expect to see relaxation of this policy after more dialogues with banks and businesses.

All these changes come at a time just as I was thinking of reducing spending on cars. I think the COE and new car prices look set to drop but paradoxically the number of people who can afford to buy car will also shrink. Disrupted economics. We all need to stand at the sidelines for the next few COE bid to watch what happens. Now is not the right time to rush in. Judging by the huge amounts of sales closed last night, there will be a lot of bids coming in for the next month.

Time to join the Kia forum.

[Carbonrevo_Lawrence]

COE should breach 100K this time round. Another few millions of income electronically sucked to them again

[Ah Bui]

Can consider starting a Isuzu forum liao. ...

[Tanzy]

Can consider starting a Isuzu forum liao. ...

Nissan forum got Cabstar section or not?

Mercedes also got Viano and Vito plus new Citan.

[thaiedwin]

time to buy A or B class wont get so affected....

[Ah Bui]

Nissan forum got Cabstar section or not?

Mercedes also got Viano and Vito plus new Citan.

dunno about that... but I do know Cabstar is crap.... so u planning to change from a 2 door ride to another 2 door ride??? I suggest Isuzu. ... we can start the forum as founders.... lol

[Tigershark]

hmm... since yen weaken so much and coe should tumble after new downpayment & loan system take effect.. maybe got chance to look at ahbeng cars again!

[Maeryn]

Banks are in for a very rude awakening. ... it'll be a very major chain reaction.....

 

 

Ya, half the Auto Loans Dept can get chop off liao...

 

 

I agree with Tanzee that 50% is overly strict, 30% is more reasonable.  I pity those in sales who needs a car to run around...

[Maeryn]

hmm... since yen weaken so much and coe should tumble after new downpayment & loan system take effect.. maybe got chance to look at ahbeng cars again!

 

 

Yen has weakened but all the other currencies are depreciating to boost the competitiveness of their exports as well...

[Tanzy]

dunno about that... but I do know Cabstar is crap.... so u planning to change from a 2 door ride to another 2 door ride??? I suggest Isuzu. ... we can start the forum as founders.... lol

 

Isuzu Vehicross

Still looks modern more than a decade later.

 

[Ah Bui]

Look like a yellow submarine like those used in deep sea diving......

[Old-MAN]

Incidentally I saw a light yellow Toyota with sliding door.... Only 2 doors but sliding type..... Looks cool......

[Ricebandit]

Question - do these new measures affect say, a COE car? For example, if one were to say buy a 1991 SL500 and want to take a loan, would it still be 50% only? (the omv on one of those would be pretty high)

 

On another note, what's the interest rate for a reno loan now? maybe I can take a 100k loan for a new tap 

[Maeryn]

Question - do these new measures affect say, a COE car? For example, if one were to say buy a 1991 SL500 and want to take a loan, would it still be 50% only? (the omv on one of those would be pretty high)

 

On another note, what's the interest rate for a reno loan now? maybe I can take a 100k loan for a new tap 

 

 

Based on my understanding you can borrow up to 50% with the loan tenure capped at 5 years.

 

$100K tap? Solid 24K gold with precious gems encrusted? I believe you would need to furnish the quotation/invoice as proof for the reno loan application

[oreocookie]

I don't think the Aventador was ever in the reach of the average Singaporean on the street. I also don't think that the Aventadors in Singapore contribute, in any way, to the traffic congestion. 

 

exactly! these cars are the outliers in terms of statistics.... 

[oreocookie]

at the end of the day, lets all just save and be prudent. dont take too much loan - bad for health good for the evil bankers.

COE up or down is no one's guess.... what's most important is you are finally paying for what you can afford.

 

 

 

 

 

 

 

 

ok now where is my bicycle in my storeroom....

[Merc Fan]

So with the new tax structure, we won't be able to afford to buy a new Mercedes anymore!

[whysee]

Car loan interested adjusted up - 3.25% now. http://www.dbs.com.sg/personal/loans/auto-loans/default.page

 

What about other banks?

[Tanzy]

Back to the good ol'days.

[Cklasse]

The good old days used to see car loan limited to 7 years and must down something like 30% to buy car. It's just tighter now, Singaporean will forget after some time and we will still pay to buy.

The interesting fact is most will still come out with the high downpayment eventually when it comes to cars.

[Tanzy]

I remember when I bought my first Benz, a B200, in 2007.

I took $100K loan over 7 years from Citibank at 3.5% interest rate.

Monthly was $1485.

 

Then in 2008, I bought my first Honda, a S2000.

I also took $100K loan over 7 years from UOB at 2.2% interest rate.

Monthly was $1375.

 

My wife bought a Golf 1.4TSI in 2010.

She took $100K loan over 7 years from HSBC at 1.75% interest rate.

Monthly was $1340.

 

I think car loan interest rates are not that much a worry at this point in time.

Furthermore, with the 50-60% cap, there's only so much loan a person can take.

[Odessus]

Funny how this topic pops up in ALL forums I frequent. Lol. Cars or non-cars related alike...

[Maeryn]

Now with the reduced loan quantum and shorter loan tenure, all banks will raise their interest rates to get back the same margin they used to make...

[Ricebandit]

They already have.. it's like now 3.25%. 

 

It's not nearly as bad as it seems.. an E250 now costs about 13k more in taxes.. if the COE drops by an equivalent amount, it's a sum zero game. 

 

Volume for sales is probably gonna take a hit so I'd hope to see big discounts/overtrades as dealers fight for a piece of the smaller pie. 

 

Lots of people who are already driving Mercs would end up making it to about 50% down if they trade in anyway (assuming they were on short tenures to start with). The ones who are probably going to be hit are first time car buyers, young couples with kids who may not have so much spare cash lying around, and the like. And Aventador buyers, but hey, maybe they'll end up with a 458 instead..