Update on Used Cars Industry

Mr Ang Wei Neng asked the Minister for Transport (a) what was the average monthly number of used car transactions six months before the financial curb was implemented on 25 February 2013; (b) till 7 May 2013, how many of the 7,000 used cars which were in stock before the financial curb have been sold after the restriction was temporarily lifted for 60 days from 6 April 2013; and (c) how many new cars have been bought by the physically disabled or their caregivers that are exempted from the loan curb.

From August 2012 to January 2013, about 5,000 used cars were sold monthly, based on the data of cars that were transferred from motor vehicle dealers to buyers via the Land Transport Authority's Temporary Transfer Scheme (TTS).

As at 7 May 2013, about 3,800 used cars, or 55% of the around 7,000 used cars that were in the TTS before the car loan restrictions were imposed on 26 February 2013, have been sold.

The implementation details for the framework to exempt the physically disabled or their caregivers from the car loan restrictions were made available on 15 April 2013. As at 7 May 2013, MAS has received one application from a borrower under this framework. MAS has also received queries on the framework and expects to receive more applications in due course.