The Monetary Authority of Singapore (MAS) has rejected the appeal from the used car industry to soften its loan curb approach for pre-owned cars. The appeal was put forward by the Singapore Vehicle Traders Association (SVTA) after the drastic measures has caused a substantial dent in used car sales.

The new regulations restricts the loan quantum, pegging it at a maximum of 60 percent of a car's purchase price. As such, car buyers now need to come out with a substantial cash sum for downpayment.

Used car dealers have voiced that sales were badly affected, with some grinding to a halt after the new loan rules took effect. This, despite drastic price cuts to bring the crowd back to the showroom.

The petition was sign by more than 400 used car dealers - in a bid to request for a lift off the loan curb on used cars. Speaking to The Straits Times, Honorary Secretary of SVTA Raymond Tang said, "We are really bleeding, and hope the PM can do something quick to change the minds of the policy makers and soften the restrictions on us."

Explaining its stand on the ruling, an MAS spokesperson said by exempting used cars from the loan regulations, prices of these vehicles will climb, and hence cause a shift in demand to new cars. This in turn will drive up the Certificate of Entitlement (COE) prices.