The new tough rules on car loans have unleashed yet another public outcry. New car buyers now have to fork out 50-60% of the total amount. In the past, one used to be able to waltz into a car showroom and come out with a car without much immediate cash payment, since we could get a 100% loan.
Isn't such easy financing one of the biggest reasons for the astronomical COE prices we are seeing? If people actually feel the pinch of coughing up cash for the car, we are less likely to see such indiscriminate bidding for the precious COE, and then everyone would get to pay less for the certificate. What is the problem?
Don't forget that whether you get a loan, or pay upfront, the money eventually comes from your own pocket. Seen in this light, a loan is simply delayed pain, a form of self-delusion even. Can't afford the cash payment? Then save up for it. Eventually, you would accumulate enough, right? And if you can't, why are you even thinking of buying a car?