Sammyboy RSS Feed
23-09-2015, 01:50 PM
An honorable member of the Coffee Shop Has Just Posted the Following:
The curb is breached by offering one or more of the following:
• Overtrade - a practice of offering a buyer substantially more for his trade-in vehicle. This is practised mostly by authorised agents.
• Disguised leases - in a lease agreement, the car is registered under the lessor's name, and the monthly rental is substantially higher than instalments in a hire-purchase. But dealers are readily offering "leases" that allow the car to be registered under the end-user's name and with relatively low monthly payments via a buyback offset.
• Invoice inflation - if a car costs $170,000, the seller will inflate it to, say, $270,000, so as to secure an 80 per cent loan from the bank.
• Balloon scheme - a seller subtracts the car's scrap value from the instalment calculation, resulting in lower monthly payments. At the fifth year, the consumer "scraps" the car to settle the outstanding amount, or refinances the car.
http://www.straitstimes.com/singapor...car-loan-curbs (http://www.straitstimes.com/singapore/transport/lenders-bypassing-car-loan-curbs)
Click here to view the whole thread at www.sammyboy.com (http://sammyboy.com/showthread.php?216903-Lenders-bypassing-car-loan-curbs&goto=newpost).
The curb is breached by offering one or more of the following:
• Overtrade - a practice of offering a buyer substantially more for his trade-in vehicle. This is practised mostly by authorised agents.
• Disguised leases - in a lease agreement, the car is registered under the lessor's name, and the monthly rental is substantially higher than instalments in a hire-purchase. But dealers are readily offering "leases" that allow the car to be registered under the end-user's name and with relatively low monthly payments via a buyback offset.
• Invoice inflation - if a car costs $170,000, the seller will inflate it to, say, $270,000, so as to secure an 80 per cent loan from the bank.
• Balloon scheme - a seller subtracts the car's scrap value from the instalment calculation, resulting in lower monthly payments. At the fifth year, the consumer "scraps" the car to settle the outstanding amount, or refinances the car.
http://www.straitstimes.com/singapor...car-loan-curbs (http://www.straitstimes.com/singapore/transport/lenders-bypassing-car-loan-curbs)
Click here to view the whole thread at www.sammyboy.com (http://sammyboy.com/showthread.php?216903-Lenders-bypassing-car-loan-curbs&goto=newpost).