It has been noted that car repossession is on the rise. There's
a 2 page article on car repossession in today's ST, dated
Tuesday,18th November 2008 on pages B1 and B2. Here's an
extract;
"Checks by the ST on major yards where repossessed vehicles
were held showed a mixed picture: 1 such yard, used by a leading
local bank had about 60 cars and was only half-filled with
relatively new Mercedes-Benzes, BMWs, Saabs and even a $300,000
Range Rover. But another yard, in the central part of Singapore,
used by an international leader, was full, holding about 200 cars -
mainly mass market models. An operator of the yard for repossessed
cars told the ST that she was expecting occupancy to rise soon....
Cars in the repo yards are now quite new, unlike in the slowdowns
of 1998 and 2003, when the yards were filled mainly by vehicles 7
or more years old..... Observers say this could be a reflection of
Singapore's relatively young car population today, as well as the
easy credit that banks and finance houses have been dangling at
buyers since the MAS de-regulated car-financing five years ago.
Many schemes offer "cashback"- hard cash for buyers who take up car
loans. Others offered deferred payments, or ultra-low instalments
and hefty payments later. Such offers draw many marginal buyers who
would otherwise not have been able to afford cars... Being
made bankrupt as a result of having defaulted on a car loan is an
emerging trend, anecdotal evidence suggested. Lawyers and credit
agents, are meanwhile, handling more cases involving car-driven
insolvencies..."
Extracted from ST; Tuesday, 18th November
I guess for those prospective buyers, it is important that they
consider their current financial situation very carefully before
owning one.
What do you guys think?
