BANKS and finance houses are holding back on car repossession in this economic downturn, despite a rising number of loan defaults, say industry sources.
They cite a soft resale market here and weak demand abroad as reasons. With slack demand from abroad, the re-export market, along with the resale value of cars in general, has been hit.
In this climate, a bank which repossesses a car may not be able to recoup the sum it is owed.
Read Christopher Tan's full story in Tuesday's edition of The Straits Times.
