Bank car loan interest rates have increased from 1.88 to 2.68 percent

According to The Straits Times, DBS remains to be the only bank to offer car loan interest rates of 1.88 percent per annum while all others have raised the figures - almost uniformly - to 2.68 percent. The increase in rate percentage came about after the Government's announcement during this year's budget of intentions to cool the local car market - with a shortened loan period of five years from ten and lowered loan amount to a maximum of 60 percent from 100 percent.

To counter the loss of interest earnings by banks and other lenders, interest rates had to be raised. For example, a $100,000 five-year loan at the new rate translates to interest amounting to $13,400 - up from $9,400 if the lending rate was at the former 1.88 percent.

Naturally the public isn't pleased with the increase.

63-year old Property agent, Eddie Low, said, "That's not right. This development had nothing to do with the market - it was government regulation. So I don't think they should simply pass the cost on. The consumer is bullied in many instances." Mr Low, aspires for COE premiums to drop so that he could replace his eight-year old Nissan Sunny.