From February 26 onwards, MAS said consumers will be limited to borrowing 60 per cent of the purchase price of a motor vehicle when the open market value (OMV) is S$20,000 or less.
A tighter limit of 50 per cent will be imposed when the OMV is more than S$20,000.
The MAS is also capping the tenure of a motor vehicle loan at five years.
With these restrictions, I hope that there will be fewer people bidding for the COE and the price of COE to fall within reasonable range. My target is for the COE to fall to below $20k within the next three years. I have just paid off my car loan and now I'm saving some amount every month so that I can have the cash to pay for my 3rd car. My 2nd car has another 3 years before the 10 years COE expires.
On February 20, COE for cars up to 1,600cc ended at $78,301, down from $87,109 a fortnight ago. Let's see whether the next bidding will drop or rise...