Quantum of motor vehicle loans hit 10-year high in Singapore

A study by Credit Bureau Singapore has shown that the quantum of motor vehicle loans reached a 10-year high last year.

According to the bureau's analysis on car loans from 2003 to 2012, motorists took new loans with an average principal amount of $90,401 last year - a 130.8 per cent increase from $39,161 in 2003.

Despite the heavier debt commitment, motor loan delinquency generally fell over the last decade.

The bureau found that only 2.7 per cent of car loan holders had an installment that was overdue by more than 30 days last year, the lowest in 10 years.

The figures factor in loans taken by consumers for new and second hand motor vehicles.

Only motor loans by member banks of the bureau such as DBS and Citibank are included in the study.