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Mar 29, 2010
Don't let car buyers spend beyond means
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I APPLAUD the move by the Land Transport Authority to address the mismatch of supply and demand by issuing certificates of entitlement based on the number of cars scrapped for the previous six months instead of going by projected numbers.
To deter first-time potential car buyers from spending beyond their means, car-financing schemes should also be revised.
Currently, many young aspiring Singaporeans are buying cars without a second thought as no down payment is required and the repayment may stretch to 10 years. Under this system, cases of default on instalments resulting in cars being repossessed by finance companies are a common occurrence.
The most workable and ideal solution is to apply the old system which requires the buyer to place a down payment of 30 per cent of the car price. The loan repayment period should be capped at a maximum of seven years.
This would help ensure smoother traffic too.
Poh Soon Leong
Don't let car buyers spend beyond means
<!-- by line --><!-- end by line -->
<!-- end left side bar --><!-- story content : start -->
I APPLAUD the move by the Land Transport Authority to address the mismatch of supply and demand by issuing certificates of entitlement based on the number of cars scrapped for the previous six months instead of going by projected numbers.
To deter first-time potential car buyers from spending beyond their means, car-financing schemes should also be revised.
Currently, many young aspiring Singaporeans are buying cars without a second thought as no down payment is required and the repayment may stretch to 10 years. Under this system, cases of default on instalments resulting in cars being repossessed by finance companies are a common occurrence.
The most workable and ideal solution is to apply the old system which requires the buyer to place a down payment of 30 per cent of the car price. The loan repayment period should be capped at a maximum of seven years.
This would help ensure smoother traffic too.
Poh Soon Leong
