New policy measures have sent buyers and those in the car market reeling. Even MPs have raised their concerns in Parliament.
Buying a car in Singapore just got more expensive with the new policy measures unveiled by the government last week.
The measures - car loan restrictions and the introduction of a new tiered tax - are intended to help reduce demand for cars and alleviate the high Certificates of Entitlement (COE) prices.
However, the “drastic” measures have sent buyers and those in the car market reeling. Even MPs have raised their concerns in Parliament, asking for concessions to be made for buyers with genuine needs.
MP for Ang Mo Kio GRC, Dr Intan Azura Mokhtar, cited the example of a cancer-stricken resident who is wheelchair-bound and needs a car to ferry his children to school and go to work.
“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,” she said in Parliament on Monday.
“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.”
Following feedback from MPs, Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam announced in Parliament on March 7 that the physically disabled or their caregivers will be exempted from the new loan restrictions for one car. And for used car dealers, Mr Tharman said the Land Transport Authority will give them more time to find buyers for their cars.
And on April 5, MAS temporarily lifted current curbs on used car loans for the purchase of used cars from April 6 for 60 days. This applies to used cars that were part of car dealers' inventory before the restrictions were introduced on 25 February 2013.
With cars becoming a greater luxury, what would you need to consider before making that purchase? And what can be done to ease the pinch? Read on to find out.
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