Cooling measures for cars: Buying pre-owned.

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.

Related posts:
1. Cooling measures for cars.
2. Cooling measures for cars spurned.

Keeping HDB flats affordable.

There is an on-going debate on whether HDB flats are actually subsidised. Personally, I believe that the flats are subsidised because the government could otherwise sell state land to private developers for much higher prices.


A while back, Mr. Khaw Boon Wan, in an interview, revealed that "every year, hundreds of millions of dollars of losses were incurred by the HDB and that's why MOF has to give the HDB an annual grant, otherwise the HDB will be in the red. Because every unit that we sell, we lose money, HDB loses money."

HDB Singapore pays market rate for its land and construction costs. So, selling flats at below market prices, HDB incurs a deficit.

I blogged about how Mr. Khaw Boon Wan plans to bring down prices of new flats in non-mature estates before to ensure affordability. I wondered if this could lead to HDB resale prices crashing too but, once again, Mr. Khaw assured that a crash will not happen because there will be "distinct differentiation" between cheaper new flats and those built earlier.

I wonder how these cheaper new flats will be different from those built earlier but there is no doubt that subsidies will have to continue playing a big role to keep HDB flats affordable.