Lenders bypassing car loan curbs

[dancingshoes]

The curb is breached by offering one or more of the following:

• Overtrade - a practice of offering a buyer substantially more for his trade-in vehicle. This is practised mostly by authorised agents.

• Disguised leases - in a lease agreement, the car is registered under the lessor's name, and the monthly rental is substantially higher than instalments in a hire-purchase. But dealers are readily offering "leases" that allow the car to be registered under the end-user's name and with relatively low monthly payments via a buyback offset.

• Invoice inflation - if a car costs $170,000, the seller will inflate it to, say, $270,000, so as to secure an 80 per cent loan from the bank.

• Balloon scheme - a seller subtracts the car's scrap value from the instalment calculation, resulting in lower monthly payments. At the fifth year, the consumer "scraps" the car to settle the outstanding amount, or refinances the car.

http://www.straitstimes.com/singapore/transport/lenders-bypassing-car-loan-curbs

 

[lifeafter41]

The curb is breached by offering one or more of the following:

• Overtrade - a practice of offering a buyer substantially more for his trade-in vehicle. This is practised mostly by authorised agents.

• Disguised leases - in a lease agreement, the car is registered under the lessor's name, and the monthly rental is substantially higher than instalments in a hire-purchase. But dealers are readily offering "leases" that allow the car to be registered under the end-user's name and with relatively low monthly payments via a buyback offset.

• Invoice inflation - if a car costs $170,000, the seller will inflate it to, say, $270,000, so as to secure an 80 per cent loan from the bank.

• Balloon scheme - a seller subtracts the car's scrap value from the instalment calculation, resulting in lower monthly payments. At the fifth year, the consumer "scraps" the car to settle the outstanding amount, or refinances the car.

http://www.straitstimes.com/singapore/transport/lenders-bypassing-car-loan-curbs

The over trade one is pretty prevalent, in the sense, its up to the dealer to accept the value of the car. As for the rest, it's a stretch legally, especially on those disguised leases, where there is no recourse, if the leasing company were to go bust.

As for invoice inflation, it's definitely a no no......

 

[dancingshoes]

The over trade one is pretty prevalent, in the sense, its up to the dealer to accept the value of the car. As for the rest, it's a stretch legally, especially on those disgusted leases, where there is no recourse, if the leasing company were to go bust.

As for invoice inflation, it's definitely a no no......

should get CPIB into the picture.

 

[virus]

should get CPIB into the picture.

Investigate your lang jeow. 70% voted to b chop carrot okie

 

[mojito]

I see nothing wrong with making more sales.

 

[xebay11]

The bigger problem is the financial situation of most Singaporeans which is worrying, many can't afford to buy a car in reality and have to resort to all these underhanded tactics to get a loan. How come sinkies so poor?

 

[lifeafter41]

The bigger problem is the financial situation of most Singaporeans which is worrying, many can't afford to buy a car in reality and have to resort to all these underhanded tactics to get a loan. How come sinkies so poor?

The upfront 50% downpayment is the most difficult. Imagine buying a car for 120k and upfront payment is 60k.

It's a rich man world that would not bat an eyelid, paying the dp. Rest of Singaporeans can just stick with buses and mrt.

 

[tonychat]

The upfront 50% downpayment is the most difficult. Imagine buying a car for 120k and upfront payment is 60k.

It's a rich man world that would not bat an eyelid, paying the dp. Rest of Singaporeans can just stick with buses and mrt.

You don't even have 60k? Oh gosh.. Luckily I avoid sinkies..

 

[xebay11]

The upfront 50% downpayment is the most difficult. Imagine buying a car for 120k and upfront payment is 60k.

It's a rich man world that would not bat an eyelid, paying the dp. Rest of Singaporeans can just stick with buses and mrt.

Please lah save $1k a month in 5 years you should have enough. Saving $1k a month is rich man's world?

 

[CABcommander]

You don't even have 60k? Oh gosh.. Luckily I avoid sinkies..

m&d fucktard don't dua kang la you where got 60k. Even if I were to give you 1k for every iq point you have you also cannot reach 60k.

 

[xebay11]

m&d fucktard don't dua kang la you where got 60k. Even if I were to give you 1k for every iq point you have you also cannot reach 60k.

He has RM60k lah

 

[GoldenDragon]

I see no harm in people exploiting loopholes. End of the day, it is a biz decision and both parties enter into the contract with eyes opened. No need to regulate everything under the sky.