You won't believe motor loan quantums hit 10-year high in 2012

New loans surged 130.8%.

According to a study by Credit Bureau Singapore (CBS) has found that motor vehicle loan quantums hit a 10-year peak last year. 

According to the CBS analysis on car loans from 2003 to 2012, motorists took new loans with an average principal amount of $90,401 last year, a 130.8% increase from $39,161 in 2003.

Despite the heavier debt commitment, motor loan delinquency generally fell over the last decade, sinking to an all-time low in 2012. According to CBS’ analysis, 2.69% of car loan holders had an installment that was overdue by more than 30 days in 2012, the lowest in 10 years.

CBS’ data also showed that the demand for new loans for motor vehicles dipped to its lowest in 10 years in the last three years. In 2010, 2011 and 2012, consumers took up 65,398, 64,807 and 64,838 loans, respectively.

The above figures include loans taken by consumers for new and second hand motor vehicles. Only motor vehicle loans disbursed by the member banks of CBS are included in the study.

Member banks and financial institutions that disburse motor vehicle loans include Bank of East Asia, Citibank, DBS, Hong Leong Finance, HSBC, Maybank, Industrial & Commercial Bank of China (ICBC), OCBC, Sing Investment, Singapura Finance, StanChart and UOB.