Hello, Prudence!

Singapore Budget 2013 is out and the big boys are back to regulate the car loans.

COEs been on the rise, Credit Bureau Singapore (CBS) reports larger loan quantums of average $80k upwards, big boys now step in to limit the car loan amount (50% for cars with Open Market Value more than $20k and 60% for cars with Open Market Value less than $20k) and tenure limited to 5 years.

Though this would hurt young families who 'need' a car if they are not cash rich, i think it is a good step from the big boys as I'm concerned about the financial prudence of families. High HDB prices, or even Executive Condominiums, and buying cars that require monthly installment of $1k upwards just sounds like a stretch to me. I'm glad my dad is not asking me to pay the car installments or insurance... and even so, I find that paying for petrol is eating up my savings. Imagine being able to save $1k+++ more each month for the young families. It would be indeed more wise to save a few years pay the downpayment and have a smaller loan quantum.

I do not believe that car is a necessity, even if u hv 2 kids or an elderly at home. At least, my parents survived without a car when we were young - we took public transport (bus and trains) everywhere and my aunt is taking good care of my grandma without a car too - just take cabs since unlikely to travel during peak hours.

Hope that everyone will save for what they need/want, and then when u have the money, then think about what is the best use for it. Taking up loans and getting into debts is really not good.

p.s.: hope that this will make the COE drop... and when it comes to my turn to renew in 3 yrs' time, will b able to renew the COE (aiming less than $20k). dont intend to buy a new car if current car is still able to run. :)