In his weekly commentary, SMU Adjunct Faculty Dr Larry Haverkamp discussed the new rules about car loans. The first change is that car buyers can now borrow 60 per cent or 70 per cent of the car’s price instead of 50 per cent previously and the second change is that they can take their car loan for seven years instead of five. Dr Haverkamp noted that while the two rules help car buyers borrow more to buy a car, they do not reduce costs at all. He also shared his views on whether car buyers and banks are better off than before.
