The car loan restrictions introduced in 2013 were meant to encourage financial prudence among consumers and to moderate demand for cars, which had been driving up certificate of entitlement (COE) and car prices.

Higher COE prices contribute to a higher inflation rate and create negative spillover effects on the broader economy.

Under the new regulations, motor vehicle loans were reduced to a 60 per cent cap of the purchase price, with a repayment period of up to five years.

Unfortunately, there are loopholes in the system which companies are exploiting ("Lenders bypassing car loan curbs"; Sept 23, 2015, "Uber helps car buyers overcome loan limits"; March 30, and "Ride way to bend the rules"; April 19).

Companies should not be allowed to exploit the loopholes, effectively bypassing the objectives of the curbs.

With the economic outlook looking more challenging each day, financial prudence is the habit to encourage ("Exports dive at fastest rate in 3 years"; April 19).

I hope the authorities will monitor and restrict car leasing options, which is one of the ways motor firms are bypassing the loan curbs.

Perhaps car leasing should be offered only to cars which are more than a year old.

Ang Eng Chong