Car loan curbs: What were they meant to achieve?

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#21
(06-03-2013, 10:18 PM)egghead Wrote: Actually, the more updated number is about 1 in 2 households owns a car - i.e. about 50%. Data taken from singstat.gov.sg web site

Hi egghead

This is the source of my comments - LTY

Perhaps you could share a link to your data too?
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#22
I took the information from here
http://www.singstat.gov.sg/stats/keyind.html

Population = 5,312,400 (A)
No. of households = 1,152,000 (B)
Private cars per 1,000 population = 110 ( C )

Taking A / 1,000 x C = 584,364 cars
So dividing the above with B will get 50.7%

Not sure which is more updated or correct though
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#23
So it is roughly 50/50. I won't split hairs over the 4% or so difference - just take it as half of Singaporean households own a car. Some even own 2 or more! Smile
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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#24
(07-03-2013, 05:59 AM)egghead Wrote: I took the information from here
http://www.singstat.gov.sg/stats/keyind.html

Population = 5,312,400 (A)
No. of households = 1,152,000 (B)
Private cars per 1,000 population = 110 ( C )

Taking A / 1,000 x C = 584,364 cars
So dividing the above with B will get 50.7%

Not sure which is more updated or correct though

the stat shows that ratio of cars to households is 1:2. it does not mean 50% of households own a car as many households have more than 1 car. actual figure of househols which have own a car may be very much lesser.
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#25
Hi Egghead

I think your number might overstate the % of households owning cars as the implicit assumption in your computation is 1 household = 1 car.Big Grin
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#26
I agree - as the numbers are taken on average so the total number of households having at least 1 car should be less than 50%.
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#27
The Straits Times
www.straitstimes.com
Published on Mar 07, 2013
Tharman Shanmugaratnam, Cost of Living
Budget 2013: Physically disabled, caregivers will be exempt from curbs on car loans


By Goh Chin Lian

The new curbs on motor vehicle loans will not apply to those who are physically disabled as well as their caregivers for one car, said Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam on Thursday.

This follows calls by MPs to ensure that this group can still have access to a car to get around.

In his speech rounding up the Budget debate, Mr Tharman also said the loan restrictions are not permanent and will be reviewed later depending on market developments, but are necessary for now to keep a lid on inflation.

He added that car prices made up one-fifth to half of inflation measured by Consumer Price Index in the past three years.
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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#28
Lightbulb 
(07-03-2013, 05:18 PM)Musicwhiz Wrote: The Straits Times
www.straitstimes.com
Published on Mar 07, 2013
Tharman Shanmugaratnam, Cost of Living
Budget 2013: Physically disabled, caregivers will be exempt from curbs on car loans


By Goh Chin Lian

The new curbs on motor vehicle loans will not apply to those who are physically disabled as well as their caregivers for one car, said Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam on Thursday.

This follows calls by MPs to ensure that this group can still have access to a car to get around.

In his speech rounding up the Budget debate, Mr Tharman also said the loan restrictions are not permanent and will be reviewed later depending on market developments, but are necessary for now to keep a lid on inflation.

He added that car prices made up one-fifth to half of inflation measured by Consumer Price Index in the past three years.

so the main purpose of the COE curbs is to control inflation.
I find it strange as last year some minister had stated that high inflation does not bother the common man. so this is another U-turn in policy.

I wonder how many more U-turns to expect in next few months.

Or control of inflation has been included in the KPI's for our ministers.

I think we missing something there. there is more to these COE curbs than just controlling car prices.

Huh
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#29
(08-03-2013, 03:01 PM)viruskbs Wrote:
(07-03-2013, 05:18 PM)Musicwhiz Wrote: The Straits Times
www.straitstimes.com
Published on Mar 07, 2013
Tharman Shanmugaratnam, Cost of Living
Budget 2013: Physically disabled, caregivers will be exempt from curbs on car loans


By Goh Chin Lian

The new curbs on motor vehicle loans will not apply to those who are physically disabled as well as their caregivers for one car, said Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam on Thursday.

This follows calls by MPs to ensure that this group can still have access to a car to get around.

In his speech rounding up the Budget debate, Mr Tharman also said the loan restrictions are not permanent and will be reviewed later depending on market developments, but are necessary for now to keep a lid on inflation.

He added that car prices made up one-fifth to half of inflation measured by Consumer Price Index in the past three years.

so the main purpose of the COE curbs is to control inflation.
I find it strange as last year some minister had stated that high inflation does not bother the common man. so this is another U-turn in policy.

I wonder how many more U-turns to expect in next few months.

Or control of inflation has been included in the KPI's for our ministers.

I think we missing something there. there is more to these COE curbs than just controlling car prices.

Huh

Last year they didn't know there would be a PE BE , and after PE BE , they realized many things.
“risk comes from not knowing what you’re doing.”
I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.
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#30
not sure abt the reasons but personally i welcome the loan curbs.

people complain that young families will suffer if they cannot get the loans for a car. Personally, if u have to take out so much loan to get the car, then u cannot afford it in the first place.

The family WILL SUFFER if they do not understand their debt levels and end up getting into trouble when dirt hits the fan e.g. loss of a job or a huge interest rate hike.

In the former, the pain is to squeeze on the MRT. In the latter, the pain is a breakdown of the marriage and eternal scarring on the child.

For the sake of the society, i prefer the former. (though i much prefer the G spends tons more and improve the public transportation big time)

The flood of COEs really began after LHL took over as prime minister - eager to please the nation yearning for a vehicle. Subsequent deregulation of the loans exacerbated the problem. You create the problem, so pls solve the problem u created.

Pretty interesting piece from the WSJ on Singapore as the new Monaco:
http://online.wsj.com/article/SB10001424...sk=y&dsk=y
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