For vehicles with an open market value (OMV) that is below $20,000, the maximum loan-to-value (LTV) is 60% of the purchase price, including relevant taxes and the price of the Certificate of Entitlement (COE) where applicable;
While for vehicles with OMV exceeding $20,000, the maximum LTV is 50% of the purchase price. Crazy pricing, out of reach of most middle-income families now.
In addition, MAS is also capping the tenure of a motor vehicle loan at five years. However, these new financing restrictions does not apply to loans for the purchase of commercial vehicles or motorcycles.
For re-financing facilities, only the cap on loan tenure applies.
According to MAS, the financing caps and limit on loan tenures are necessary to encourage financial prudence among car buyers. They also added that in this prolonged environment of very low interest rates, there is greater risk of buyers over-extending themselves on motor vehicles.
With huge down payment and a limited loan tenure, it will be very difficult for most middle-income families in Singapore to buy a car. However, there are still a few local credit companies in Singapore like Speed Credit who can make an exception on this rules.
To aid such absurd financing requirements, Speed Credit has been able to work out and offer the following auto loan financing options to all aspiring car buyers in Singapore:
1.) Up to 80% Financing (Based on the purchase price)
2.) Up to 9 years of Loan Tenure
3.) Cheapest In-House Car Loan Interest Rates – 1.68% / 1.88% (Subject to approval)
Please take note that all the above financing options are 100% MAS Rules Compliant. Should you need to know more, please do not hesitate to call us at 6444-4400. For a more personalised service, you can call our finance specialist, Lynn Chai at 9851 8281.