Singapore closes car loan loophole by extending financing curbs to individually owned private-hire cars

The new restrictions come amid concerns that some buyers may have been taking advantage of an exemption meant for commercial vehicles, despite having no intention of providing private-hire services.

A decal displayed on a private-hire car. (File photo: TODAY/Ooi Boon Keong)

This audio is generated by an AI tool.

SINGAPORE: Individuals buying vehicles registered as private-hire cars (PHCs) will be subject to the same loan restrictions as private car buyers from Friday (Oct 30), closing a potential loophole that some motorists may have used to secure more generous financing terms.

The move comes amid concerns that some buyers may have been taking advantage of an exemption meant for commercial vehicles, despite having no intention of providing private-hire services.

In a media release on Thursday, authorities said there had been a recent surge in registrations of individually owned self-drive PHCs, with about 500 such vehicles registered each month.

This "suggests that some may be doing so primarily to access more permissive financing terms", the Ministry of Transport, Monetary Authority of Singapore, Ministry of Energy, Trade and Industry and Ministry of Law said in a joint media release.

CNA Games Guess Word Crack the word, one row at a time Buzzword Create words using the given letters Mini Sudoku Tiny puzzle, mighty brain teaser Mini Crossword Small grid, big challenge Word Search Spot as many words as you can Show More Show Less Under the new rules, individuals purchasing PHCs with an open market value (OMV) of S$20,000 (US$15,600) or less will be allowed to borrow up to 70 per cent of the vehicle's purchase price. For vehicles with an OMV exceeding S$20,000, the maximum loan-to-value ratio will be 60 per cent. The purchase price includes relevant taxes and the cost of the certificate of entitlement (COE), where applicable. Loan tenures will also be capped at seven years. These restrictions already apply to ordinary private car purchases but have not applied to PHCs, which were previously exempted on the basis that they were used for commercial purposes. The exemption was originally intended to recognise the commercial use of PHCs, which, unlike taxis, are private cars that can also be used to provide private-hire services. However, the authorities noted that the PHC industry had evolved over the years, with the fleet having grown and stabilised. "More recently, there have been more instances of individual buyers of private cars using this exemption who have no intent to offer PHC services," the authorities said. "To ensure that PHC purchases cannot be used to circumvent financing restrictions that apply to private car buyers, individual buyers of PHCs will now be subject to the same financing restrictions as private car buyers," they added. "This will also ensure that new PHC drivers exercise the same financial prudence as other private car buyers."

Under the new rules, individuals purchasing PHCs with an open market value (OMV) of S$20,000 (US$15,600) or less will be allowed to borrow up to 70 per cent of the vehicle's purchase price.

For vehicles with an OMV exceeding S$20,000, the maximum loan-to-value ratio will be 60 per cent.

The purchase price includes relevant taxes and the cost of the certificate of entitlement (COE), where applicable.

Loan tenures will also be capped at seven years.

These restrictions already apply to ordinary private car purchases but have not applied to PHCs, which were previously exempted on the basis that they were used for commercial purposes.

The exemption was originally intended to recognise the commercial use of PHCs, which, unlike taxis, are private cars that can also be used to provide private-hire services.

However, the authorities noted that the PHC industry had evolved over the years, with the fleet having grown and stabilised.

"More recently, there have been more instances of individual buyers of private cars using this exemption who have no intent to offer PHC services," the authorities said.

"To ensure that PHC purchases cannot be used to circumvent financing restrictions that apply to private car buyers, individual buyers of PHCs will now be subject to the same financing restrictions as private car buyers," they added.

"This will also ensure that new PHC drivers exercise the same financial prudence as other private car buyers."

The new financing restrictions will apply to individuals, including sole proprietors, obtaining motor vehicle loans from financial institutions and licensed or exempt moneylenders.

They will also cover hire-purchase and conditional sale agreements.

The rules will apply to purchases where sales agreements are signed on or after Oct 30.

Where there is no sales agreement, the restrictions will apply if the COE is obtained on or after that date.

Commercial vehicles, business-owned PHCs and motorcycles will remain exempt from the financing restrictions.

The government said it had separately considered other measures, including creating a dedicated COE category for private-hire and car-leasing companies.

“However, this will likely result in higher rentals for PHC drivers and higher fares for PHC users, thus disadvantaging those who do not own a car or cannot drive,” they said.

“It will also require more prescriptive rules on PHC drivers and cars, thus reducing the flexibility to meet the commuting demand of PHC users.”

Authorities said the government would continue to monitor market developments and could take further steps to ensure that financing restrictions were applied consistently across different arrangements, including in-house loans.

It would also work closely with platform operators to implement the measures effectively and consistently.

“We advise all prospective car buyers to borrow within their means and avoid unregulated financing schemes,” the authorities said.

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新限制措施出台之际，人们担心一些购车者可能利用了原本针对商用车辆的豁免政策，尽管他们并没有提供私人租赁服务的打算。

一辆私召车上张贴的贴纸。（资料照片：TODAY/Ooi Boon Keong）

这段音频是由人工智能工具生成的。

新加坡：从周五（10月30日）起，购买注册为私召车（PHC）的车辆的个人将受到与购买私家车相同的贷款限制，从而堵住了部分车主可能利用的、获得更优惠融资条件的潜在漏洞。

此举的背景是，人们担心一些买家可能利用了原本针对商用车辆的豁免政策，尽管他们并没有提供私人租赁服务的打算。

当局周四在一份媒体声明中表示，最近个人拥有的自驾式公共卫生车注册量激增，每月约有 500 辆此类车辆注册。

新加坡交通部、金融管理局、能源、贸易和工业部以及律政部在一份联合新闻稿中表示，“这表明有些人这样做主要是为了获得更宽松的融资条件”。

CNA游戏 猜词游戏 逐行破解单词 流行词游戏 用给定的字母组成单词 迷你数独 小谜题，脑力挑战 迷你填字游戏 小方格，大挑战 单词搜索 尽可能多地找到单词 显示更多 显示更少 根据新规，购买市场价值（OMV）为20,000新元（15,600美元）或以下的私家车的个人，最多可贷款购车价格的70%。对于OMV超过20,000新元的车辆，最高贷款价值比为60%。购车价格包含相关税费和拥车证（COE）费用（如适用）。贷款期限也将被限制在七年以内。这些限制此前已适用于普通私家车的购买，但并不适用于私家车，因为私家车此前因其用于商业用途而获得豁免。这项豁免最初旨在认可私家车的商业用途。与出租车不同，私家车属于私家车，也可用于提供私人租赁服务。然而，当局指出，私家车行业近年来不断发展，车队规模不断扩大并趋于稳定。“最近，越来越多的私家车买家利用这项豁免，但他们并无意提供私家车服务，”当局表示。“为确保私家车购买行为不被用来规避适用于私家车买家的融资限制，私家车买家现在将受到与私家车买家相同的融资限制，”他们补充道。“这将确保新入行的私家车司机与其他私家车买家一样，谨慎理财。”

根据新规，购买公开市场价值（OMV）为 20,000 新元（15,600 美元）或以下的私家车的个人，将被允许借贷车辆购买价格的 70%。

对于 OMV 超过 20,000 新元的车辆，最高贷款价值比为 60%。

购买价格包含相关税费以及拥车证（COE）费用（如适用）。

贷款期限也将限制在七年以内。

这些限制已经适用于普通的私家车购买，但尚未适用于PHC，PHC此前因其用于商业用途而获得豁免。

该豁免最初是为了认可 PHC 的商业用途，与出租车不同，PHC 是私家车，也可用于提供私人租赁服务。

然而，有关部门指出，近海卫生设施行业多年来不断发展，船队规模不断扩大并趋于稳定。

当局表示：“最近，越来越多的私人汽车买家利用这项豁免政策，但他们并没有提供初级卫生保健服务的意图。”

他们补充说：“为了确保 PHC 购买不会被用来规避适用于私人汽车购买者的融资限制，PHC 的个人购买者现在将受到与私人汽车购买者相同的融资限制。”

“这将确保新的私家车驾驶员与其他私家车买家一样，在财务上保持谨慎。”

新的融资限制将适用于从金融机构和持牌或豁免放贷机构获得汽车贷款的个人（包括个体经营者）。

他们还将涵盖分期付款购买协议和附条件销售协议。

这些规定适用于10月30日或之后签署销售协议的购买交易。

如果没有销售协议，则如果拥车证是在该日期或之后获得的，则适用这些限制。

商用车辆、企业拥有的PHC和摩托车将继续免受融资限制。

政府表示，已另行考虑其他措施，包括为私召车和汽车租赁公司设立专门的拥车证类别。

“然而，这可能会导致 PHC 司机的租车费用上涨，PHC 用户的车费上涨，从而使那些没有车或不会开车的人处于不利地位，”他们说。

“这也将对公共卫生车司机和车辆提出更严格的规定，从而降低满足公共卫生车用户通勤需求的灵活性。”

当局表示，政府将继续监测市场发展情况，并可能采取进一步措施，确保融资限制在不同的安排中得到一致应用，包括内部贷款。

它还将与平台运营商密切合作，以有效、一致地实施这些措施。

当局表示：“我们建议所有潜在的购车者量力而行，避免使用不受监管的融资方案。”

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