Individuals buying cars registered as private-hire cars (PHCs) face the same borrowing limits as ordinary private car buyers from 30 October 2026, closing a route to more generous financing.
The rules cover sole proprietors too, with financing capped at 60% or 70% of the purchase price and repayment limited to seven years.
How Much Can Buyers Borrow?
The cap depends on the car’s open market value (OMV), its base cost before taxes.
| Car’s OMV | Maximum Financing |
|---|---|
| S$20,000 or less | 70% of purchase price |
| Above S$20,000 | 60% of purchase price |
The purchase price used includes relevant taxes and the Certificate of Entitlement (COE), where applicable. OMV determines which cap applies; it is not the amount to which the percentage is applied.
The restrictions cover loans from financial institutions and licensed or exempt moneylenders, alongside hire-purchase and conditional sale agreements.
Which Purchases Are Covered?
The rules apply where sales agreements are signed on or after 30 October. Without a sales agreement, the cutoff is whether the COE is obtained on or after that date.
Business-owned PHCs, commercial vehicles and motorcycles remain exempt.
Why The Exemption Is Being Removed
Previously, individually owned PHCs were exempt because they were intended for commercial use.
In its 29 October announcement, the government said more buyers had been using this exemption despite having no intention of offering PHC services.
It pointed to a recent surge in individually owned self-drive PHC registrations, at about 500 a month, as suggesting some buyers were seeking more generous financing.
The government also said it would take further steps to apply restrictions consistently across financing arrangements, including in-house loans.
