Singapore is anticipating a boost in new vehicle sales following the lifting of restrictions on car financing.
The decision means car loans no longer have to be capped at 70% of the purchase price, nor do they have to be repaid within seven years.
The state says it ended the restrictions, first imposed in 1995, because car loans form only a small amount of financial institutions’ total loan portfolio and because the level of non-performing car loans is low.
The change was in line with what the state calls its "shift from a one-size-fits-all supervisory approach to a risk-focused approach."
Industry analysts say the easing will boost sales after the industry reverts to its pre-regulations methods. Auto makers now are working with finance companies to offer 10-year loans with zero or near-zero down-payments.