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New Car Financing Restrictions Imposed by MAS

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colio
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New Car Financing Restrictions Imposed by MAS

Postby colio » Thu, 28 Feb 2013 9:26 pm

Just heard MAS imposed some pretty ridiculous restrictions on car financing. Now you can only finance a maximum of 50-60% depending on the value of the car, & total number of years for loan reduced to 5 years.

We were thinking of buying a car in a couple of months, but not under these new laws.

What's the experience here, does MAS change these laws often? Why the need for these super tight restrictions? Car sales are going to plummet I am sure & banks will suffer from less business surely?

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Strong Eagle
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Postby Strong Eagle » Thu, 28 Feb 2013 9:37 pm

See a related thread here.

ftopic93593.html

offshoreoildude
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In House Car Loans that don't require huge deposits.

Postby offshoreoildude » Mon, 25 Mar 2013 1:11 pm

Currently I believe;

BMW
Hong Leong Finance

are able to beat the MAS rules.

Does anyone know of others?
Now I'm called PNGMK

taxico
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Postby taxico » Mon, 25 Mar 2013 7:41 pm

lease a car. problem solved.

these loan restrictions are not permanent. they'll be lifted some time down the road. i don't know when.

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Postby offshoreoildude » Mon, 25 Mar 2013 9:51 pm

taxico wrote:lease a car. problem solved.

these loan restrictions are not permanent. they'll be lifted some time down the road. i don't know when.


Lease rates are climbing quickly (even though some secondhand dealers have turned their sales fleets into lease fleets).
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Strong Eagle
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Re: In House Car Loans that don't require huge deposits.

Postby Strong Eagle » Mon, 25 Mar 2013 11:30 pm

offshoreoildude wrote:Currently I believe;

BMW
Hong Leong Finance

are able to beat the MAS rules.

Does anyone know of others?


One way this might happen is if the car seller engages a third party (or maybe themselves) to provide the buyer with a personal/signature loan for the down payment. Borrow 50 percent from the bank, borrow another 45 percent from Uncle Jack's Finance, put down 5 percent cash, and we're all good to go?

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zzm9980
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Re: In House Car Loans that don't require huge deposits.

Postby zzm9980 » Tue, 26 Mar 2013 8:26 am

Strong Eagle wrote:
offshoreoildude wrote:Currently I believe;

BMW
Hong Leong Finance

are able to beat the MAS rules.

Does anyone know of others?


One way this might happen is if the car seller engages a third party (or maybe themselves) to provide the buyer with a personal/signature loan for the down payment. Borrow 50 percent from the bank, borrow another 45 percent from Uncle Jack's Finance, put down 5 percent cash, and we're all good to go?


Report the cost of a $100k as $200k to the bank, and that the buyer already gave the dealer $100k down?


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