Car loan limits drastic, should be refined: MPs

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http://www.todayonline.com/singapore/car-loan-limits-drastic-should-be-refined-mps

The new limits on car loans are “sudden” and “drastic” and the Government should “refine” this measure, taking into consideration car buyers with genuine needs, urged Members of Parliament during the Budget debate yesterday.

Last week, the Monetary Authority of Singapore (MAS) announced that vehicle loan tenures would be capped at five years with effect from Feb 26, with the maximum car loan amount pegged to up to 60 per cent of the purchase price, depending on the car’s Open Market Value.

While he supported the Government’s move to encourage greater financial prudence, Mr Lim Biow Chuan (Mountbatten SMC) said the MAS should consider the impact of the scheme on middle-income earners, car buyers with genuine needs and “the aspirations of the younger generation”.

Said Mr Lim: “There should be a proper balance to ensure that people with genuine need for cars will still be able to own a car versus ensuring these people do not overstretch themselves financially.”

Dr Intan Azura Mokhtar (Ang Mo Kio GRC), cited the example of a Jalan Kayu resident who is stricken with cancer, wheelchair-bound and requires a car to ferry his children to school and go to work.
She said: “Because of his physical condition, I hope that some concessions can be made for some families such as Mr Kang’s to purchase a car that may be a necessity to help them be more mobile. Putting down a rather substantial down payment for a car may not be possible for residents such as Mr Kang, who would need the cash for medical treatments.”