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22-07-2011, 08:34 PM
Doesn't seem healthy eh? Middle-income folk are now borrowing more to buy a car, and for longer periods too! You would think that since these people earned more, they could pay off a greater % of the car cost in cash and borrow the rest, which would imply the loan quantum would drop as well as the repayment period. But the converse is true! 
Channel Newsasia
More taking up used-car loans
By Evelyn Lam/Dylan Loh | Posted: 21 July 2011 1948 hrs
SINGAPORE: OCBC Bank says six in 10 car loan applications this year are for second-hand buys.
This is in contrast to the situation last year when only four in 10 were for second-hand cars.
The bank attributes this to high Certificates of Entitlement (COEs) prices.
It also notes that the salary of borrowers rose from S$2,000-S$3,000 to S$4,000-S$5,000.
The bank says the average instalment periods to pay off loans have also increased by three years, while the average loans borrowed rose by S$10,000 to S$20,000.
OCBC Bank's head for auto financing and secured loans, Ms Irene Goh, said: "New car prices tend to be on the upward trend. So we may see more consumers switching to buying used cars that are more within their affordable range."
- CNA/ir
Channel Newsasia
More taking up used-car loans
By Evelyn Lam/Dylan Loh | Posted: 21 July 2011 1948 hrs
SINGAPORE: OCBC Bank says six in 10 car loan applications this year are for second-hand buys.
This is in contrast to the situation last year when only four in 10 were for second-hand cars.
The bank attributes this to high Certificates of Entitlement (COEs) prices.
It also notes that the salary of borrowers rose from S$2,000-S$3,000 to S$4,000-S$5,000.
The bank says the average instalment periods to pay off loans have also increased by three years, while the average loans borrowed rose by S$10,000 to S$20,000.
OCBC Bank's head for auto financing and secured loans, Ms Irene Goh, said: "New car prices tend to be on the upward trend. So we may see more consumers switching to buying used cars that are more within their affordable range."
- CNA/ir
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