Singapore caps private-hire car loans at 60%-70% for individuals
Why it matters: The move closes a financing loophole that let some buyers borrow 100% of a car's price, though dealers see little near-term relief for COE premiums.
Singapore will subject individuals buying private-hire cars to the same loan limits as private car buyers starting Oct. 30, closing an exemption authorities said some buyers were using without plans to provide ride services. Buyers of vehicles with an open market value of S$20,000 or less can finance up to 70% of the purchase price; those above that threshold can borrow up to 60%. Loan tenures are capped at seven years. The Transport Ministry, Monetary Authority of Singapore, Ministry of Trade and Industry, and Ministry of Law linked the change to a surge in self-drive private-hire car registrations of about 500 a month. Industry observers said the curbs may reduce over-leveraging but are unlikely to quickly lower Certificate of Entitlement premiums.
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Earlier in this story
- 2 hours agoSingapore caps private-hire car loans at 60%-70% for individualsreading now
- 45 hours agoSingapore extends car loan curbs to private-hire buyers from Oct. 30
- Oct 29Singapore caps private-hire car loans at 70%, 7 years for individuals