More gloom for used-car dealers, MAS rejects appeal

MAS rejects the industry's appeal to ease loan curbs on second-hand cars

There will be no respite for the used-car market, which has ground to a halt after the Government's drastic curbs on car loans.

The Monetary Authority of Singapore (MAS) told The Straits Times on Friday it has rejected an appeal from the industry, confirming that the curbs will continue to apply to both new and used cars.

But Singapore Vehicle Traders Association (SVTA) honorary secretary Raymond Tang is still praying for a change of heart.

He revealed that his association will be submitting a petition signed by its 400-plus members to Prime Minister Lee Hsien Loong today. "We are really bleeding, and hope the PM can do something quick to change the minds of the policy makers and soften the restrictions on us," he said.

Since Feb 26, buyers can only borrow up to 60 per cent of a car's purchase price, and have to pay it back in five years. Before, there was no cap on the loan, and buyers could take up to 10 years to pay the money back.