The used car market is sputtering as sliding Certificate of Entitlement (COE) prices render stocks bought with higher premiums commercially unviable.
A Maybank spokesman said the bank "does not comment on specific clients". The used car dealer, owned by Lim Tian Hoe and Eng Ah Lee, was uncontactable.
The fate of Shen Tat, which started in January 1989, is making the rounds in an industry caught in a COE downturn.
Singapore Vehicle Traders Association (SVTA) Honorary Secretary Jeremy Soh said the used car industry here is exposed to the unpredictability of COE prices. "Things are very slow now... mainly because of the prolonged period of low COE (prices)," he said, adding that companies unable to adapt will find the going toughest.
His firm, Ricardo, has been "moving away from retail to become more of a service provider", he said. "We're providing extended warranty, financing and insurance."SVTA President Michael Lim said the depressed COE environment is hitting sales of smaller cars hardest. The COE premium for bigger cars has eased, but that for smaller models has fallen drastically.
Some are appealing for the $10,000 levy for imported used cars to be removed, allowing traders more options
Mr. Neo Nam Heng, Chairman of diversified motor group Prime, said, "The market is really suffering. It's really bad this time. That's why we are appealing again for the $10,000 import surcharge to be lifted."
He was referring to the $10,000 levy which imported used cars are subject to. Mr. Neo said this anti-dumping measure has outlived its usefulness because cars imported into Singapore must be relatively new, and are usually in good condition. He said lifting the levy would allow used cars traders to have more options in planning their inventory.
According to Land Transport Authority figures, an average of 8,847 cars changed hands each month this year - down from 9,332 and 9,450 in 2017 and 2016 respectively.
