Entrepreneurshipproject

In: Business and Management

Submitted By crester
Words 5307
Pages 22
The Business Idea
We have come to a time in Singapore where the cost of owning a car has rocketed sky­high. Just when people in Singapore are still dwelling on the exorbitant Certificate of Entitlement prices, moods were dampened further with the recent declaration concerning cars. With reference to the Singapore Budget 2013, the maximum loan tenures have been reduced to five years which will also mean that there is a possibility where banks might increase their car loan interest rates. In addition, loan for cars is to be capped at 60% Loan­to­Value and cars with more than $20,000 of vehicle’s purchase price is capped at 50%. That is to say, if a car cost $100,000, the car buyer will have to fork out at least $40,000 to $50,000 in cash(Singapore Government 2013). Hence, many citizens in Singapore has found it increasingly challenging to cope with the tough new curbs on car loans immediately on the following day of the introduction. On top of that, owners of luxury cars will also have to fork out more money to pay for the increase in tax rates introduced in the budget. Bundling the 2013 budget with ever increasing fuel prices and maintenance cost, it will be hard for Singapore to not be the most expensive country to own a car. Despite all these new measures, there will still be a strong need for people in Singapore who require a car in their life with reasons such as having an elderly in the house or travelling for work related purposes. For that reason, people will be looking for alternatives to own a car. The most well­known alternative is to rent a car. Car rental is a norm in Singapore, especially during the festive period as borrowers are able to borrow the car for…...

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