With the announcement from the Monetary Authority of Singapore (“MAS”) on 26 May 2016, we see a consequential increment in the loan-to-value (“LTV”) ratio, as a result of the increased loan tenor period.
Open Market Value of motor vehicleMaximum LTV*Maximum loan tenor <= S$20,000
(previously 5 years)
*LTV is the amount of the loan expressed as a percentage of the purchase price of the motor vehicle. The purchase price includes all relevant taxes and the price of COE.
In Singapore, hire purchase loan is made available in banks and auto dealerships (better known as in-house financing). However, not many people know where the differences lie, and which is the cheaper option? In the below article, we will break it down for you.