Used car dealers sell most cars in their inventory before deadline ends

The 60 day exception extended to used car dealers seems to have paid off as The Straits Times reported that most of the used car inventory to be sold off. A Land Transport Authority (LTA) spokesman revealed about 4,600 of the 7,000 used cars acquired before the loan restrictions kicked in, have been sold as of Monday. The loan curb restrictions will be in effect until the 4^th of June, after which anyone buying a used car will be able to take a loan of no more than 60 percent and no longer than five years.

Mr Raymond Tang, Secretary of the Singapore Vehicle Traders Association (SVTA), added most cars sold are mid and lower-end models - like cars with an engine capacity of 1,600cc or below and mass market models like the Toyota Camry and Honda Civic.

Mr Tang who is also the Director of Yong Lee Seng Motor, anticipated used car stocks to be low after the 60 days period is over. Mr Tang added the SVTA is consulting the authorities on easing loan restrictions for used cars - for example proposing an 80 percent maximum loan for an eight year tenure - which Mr Tang claims is comfortable with most car buyers.

Having said so, the demand for used cars is slowly diminishing as more drivers are holding on to their cars. "Fewer people are selling their cars because, at this time, the prices offered by used car dealers are low. A lot of consumers won't want to sell," Mr Tang told The Straits Times.

Mr Mike Wee, Director of Mayfair Motoring, told the local paper while he cleared his inventory comprising about 30 cars within three weeks, he expects slow sales after June 4^th.