There was a big commotion with regards to how cooling measures for cars would affect the pre-owned market not too long ago. In response, from 6 April 2013, the government lifted the more stringent rules for car loans for 60 days for the purchase of pre-owned cars. The concession will end on 5 June 2013.
The Monetary Authority of Singapore stated that:
"It said it would not be possible to relieve the industry from the impact of the financing restrictions on an on-going basis.
"It said the two-month relaxation of the rules for the pre-existing used car inventory will help the industry adjust to the new conditions."
Dealers said that a period of six months would have been better.
I suspect that the pre-owned market for cars will see harder times from 6 June 2013 once the concession ends.
Why am I blogging about this?
I have a friend who is thinking of buying a pre-owned car and since he does not need to take a loan to do so, I suggested that he should wait till sometime in mid June to start shopping. Prices could possibly soften as the pool of able buyers for pre-owned cars would probably shrink by then.
1. Cooling measures for cars.
2. Cooling measures for cars spurned.