The Monetary Authority of Singapore has eased car loan guidelines, just three years after instituting them as demand for new cars has moderated.
Buyers who cannot fork out down payment drawn to schemes that offer hefty financing, as the motor industry finds ways around car loan curbs.
Excess stock of very high end cars are said to be worrying some dealers, who are stuck with a higher-than-usual inventory of unsold units.
The stringent car loan restrictions introduced last year is cited as a primary reason to the increase in the number of cars under Cat A COE.
With the loan curb and tax hikes in effect, dealers of supercars are feeling the heat as sales have slowed down tremendously.
Retailers suffered yet another gloomy sales month in May, with takings falling six percent over the same month last year.
Retail sales in Singapore in April were dragged down by plunging car, watch and jewellery sales, and are down nine percent compared to last year.
Sales of luxury makes fell hard last year, with the tiered Additional Registration Fee (ARF) and financing restrictions being blamed.
More local car distributors are offering leasing options to counter the high initial costs posed by financing curbs.
As the loan reprieve for used cars ended yesterday, most of the stock that could be sold with full loans had been snapped up.
Measures to curb car population that were introduced earlier this year are starting to take a toll on the used car market, The Straits Times reports.
Deputy Prime Minister Tharman Shanmugaratnam has mentioned that the loan curbs on motor vehicles was not the first recourse in dealing with rising car prices.
60 days lift on loan curb is sufficient to help clear off stocks, but dealers are looking for other measures to help business.
The Monetary Authority of Singapore (MAS) will not be extending the temporary lifting of car loan restrictions for used cars beyond the two month period.
The Government will be studying the effect of recent car loan curbs over a period of time before it decides on adjustments.
Following MAS' announcement of lift of loan curb on used cars, buyers are returning to pre-owned cars to snatch up good deals.
Pre-owned car dealers in Singapore continue to struggle to make ends meet and have turned to the authorities for help again.
MAS has rejected the industry's appeal to soften the loan curbs on pre-owned cars, citing increased demands for COEs as reason.
More details have been released on how the physically disabled will be exempted from the new curbs on car loan financing.
Several Members of Parliament (MP) continued to voice their concerns over the new financing restrictions set out by the MAS.