According to the Credit Bureau Singapore (CBS), a car buyer takes out an average loan of $85,105, a hike of nearly 40 per cent since 2009, The Straits Times reported.
Anecdotal evidence also suggest that borrowers are taking out loans over longer periods, the report said. CBS does not have information on average loan tenure.
Mr Anthony Lim, director of credit dealer Kenso Leasing, told the paper that most car loan tenures are now 'stretched to the max because car prices are so high now'.
The borrower could be paying out of his pocket for the next 10 years for a new car or for a used car, a tenure spanning the its remaining lifespan.
The situation is grim even if you choose to settle early.
Mr Lim said many borrowers are unaware that they will have to cough up more if they pay their loans early. He elaborated that if a borrower settles an eight-year loan in its second year, he will face a substantial penalty.
HANOI: Police have arrested a taxi driver a week after he overcharged by 40 times two Singaporean delegates to the 80th Interpol General Assembly meeting in Hanoi, Vietnam.
The driver works for the Phu Gia taxi company, but the police have not revealed his identity, reported TuoiTreNews. He was arrested on Saturday while hiding in the southern province of Dak Nong, over 1,000km from Hanoi.
The driver has been escorted to Hanoi for questioning. A lawyer told TuoiTreNews the driver could be charged with "cheating to appropriate private property".
According to TuoiTreNews, the victims are Mr Chen Ang Dani and Ms Than Sha Pen, who were forced to pay 6 million dong (S$600) for a ride of only 10km. The normal fare should have been only 150,000 dong.
The incident took place on Oct 28 when they took a taxi belonging to the Phu Gia Group, after having a meal at a popular eatery for foreigners.
The victims said that, following heated argument over prices, they negligently left behind an iPhone 4, which has been missing since.
Hanoi Transportation Association chairman Bui Danh Lien said a number of taxi operators have condemned the driver’s act, which they say negatively affected Vietnam’s national image, and demanded an inspection into the Phu Gia taxi company.
I read the Me & Money interview today with Former top investment banker Michael Dee of Morgan Stanley. So the part that intrigued me was where he said he didnt own a car!
This guy easily has tens of millions of $ in net worth.... and he doesnt believe in buying property in Singapore either. Cost too much! He'd rather use the money to invvest. Ok, to each his own.
Q: Home is now....
A rented five-bedroom house with a pool in the Bukit Timah area.
Q: I drive....
I take the taxi. I will not own a car in Singapore because it is the worst investment I can think of here (my wife has a used car for the kids). Singapore has one of the lowest tax regimes in the world until you buy a car, then it's in the middle. Most people drive their cars for about two hours a day, or 700 hours a year. It's ridiculous when you consider the capital outlay and depreciating asset versus the annual cost and the opportunity cost of not investing it.
According to the Credit Burear Singapore (CBS), a car buyer takes out an average loan of $85,105, a hike of nearly 40 per cent since 2009, The Straits Times reported.
Anecdotal evidence also suggest that borrowers are taking out loans over longer periods, the report said. CBS does not have information on average loan tenure.
Undergraduates concerned about bread-and-butter issues
by Tan Weizhen
04:46 AM Apr 05, 2012
Bread-and-butter issues - jobs, the prices of property and car ownership - were also on the minds of the undergraduates at the ministerial forum.
Responding to a question on housing prices, Deputy Prime Minister Tharman Shanmugaratnam (picture) acknowledged that "we are not in a very happy part of the cycle ... because prices have risen faster than income in the last four years".
But Mr Tharman reiterated that, compared to other countries, Singapore has done more to intervene in the market. Apart from cooling measures, the Government is also ramping up the supply of Build-to-Order flats. "It takes a bit of time ... My advice to you is, wait a little bit," Mr Tharman told the undergraduates.
Another student expressed concern on the rising Certificate of Entitlement premiums, arguing that the high cost of car ownership has not alleviated the traffic situation.
Mr Tharman replied that the congestion will be "far worse if we didn't have COE and ERP". The challenge is to improve the public transport system over the long term, he added.
On concerns about competition with foreigners in the job market, Mr Tharman reiterated that "whether we have foreigners here with us or not, we are still competing with them" - many companies, including those in the finance, hospitality and manufacturing sectors, are competing on the global stage, he added.
In response to a question, Mr Tharman also spoke of the need to "treat blue-collar workers with respect". Raising the quality and productivity of such jobs will change people's perception, he added.
"We cannot just be a society of insurance agents, real estate agents and bankers and office workers," Mr Tharman said. AMANDA LEE
Why is an undegraduate thinking of buying a car?
Shouldn't he be thinking of buying assets first, example stocks or properties before buying a liability?
Cannot understand the Z-generation (post-90s)...
The government does not own you anything okay, you better wise up and work hard if you want to survive. The smarter China and India men are coming into Singapore.
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