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.
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.
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.
The Government will be studying the effect of recent car loan curbs over a period of time before it decides on adjustments.