For the longest time, Singaporeans looked at purchasing a car as an unattainable luxury that’s not widely available to most of the working class but that has since changed when the Monetary Authority of Singapore amended their current regulations that eased the protocols when it comes to car loans.
In early May of last year, MAS announced that the allowable loan-to-value ratio will be increased from 60% to 70%. They’ve also eased the rules on the repayment tenure which has helped create a healthy equilibrium in the market.
The new set of rules made car ownership attractive and attainable again to the Singaporean working class.
If you’re thinking of purchasing a brand new car, now is the best time to do it. The ease on laws pertaining to car ownership allows you to own a car without the burdensome fees and steep prices.
Realistic Payment Options
Despite the sluggish economy, the revised financing restrictions made more debtors adept to repay the money they owe. The revision has created a healthy equilibrium where financing institutions have the capacity to lend money under more realistic terms with their debtors.
As a result, more Singaporeans are able to repay the money they owe on time. According to MAS, there has been a steady decline in the number of delinquent debtors as a result of the revision. Only 1.3% of car loan holders have an outstanding balance that’s older than 30 days.
They say that this decline in the number of delinquents spans for varying age groups, even motorists that belong to the 21 -29 age bracket. This indicates that more Singaporeans are able to repay their debt on time due to the longer repayment tenure and lower interest rates.
Now Is The Time
Owning a car doesn’t have to be as financially daunting as it once was. You can easily take advantage of the flexible repayment schemes that are suited to your needs while the market permits it.
If you want to know what financing options are available to you, get in touch with one of your loan experts today by calling +65 6255 7679. Car Loans Singapore is a company that’s dedicated to helping you drive away with your dream car with as little financial worries as possible.