Private-hire car buyers face 60% or 70% loan cap as Government extends financing curbs
The Government announced new loan-to-value limits for buyers of private-hire cars. Vehicles with an open market value of $20,000 or less will have a maximum loan limit of 70 per cent of the purchase price. This calculation includes taxes and the Certificate of Entitlement. For vehicles with an open market value above $20,000, the maximum loan limit is reduced to 60 per cent. Financing arrangements for these vehicles are now capped at a tenure of seven years. These rules were detailed in a statement from the Ministry of Transport and the Monetary Authority of Singapore.
Those looking to purchase vehicles registered as private-hire cars (PHCs) will soon be subject to loan-to-value (LTV) limits of up to 70 per cent and a financing tenure cap of seven years, the Government said on Thursday (Oct 29).Under the new rules, motor vehicles that have an open market value (OMV) of $20,000 and below will have a maximum LTV of 70 per cent of the purchase price including taxes and the Certificate of Entitlement (COE).Motor vehicles with an OMV of more than $20,000 will have a maximum LTV of 60 per cent, and the tenure of motor vehicle financing arrangements will also be capped at seven years.The statement, released by the Ministry of Transport, Monetary Authority of Singapore, Ministry of Energy, Trade and Industry and Ministry of Law, explained that individual buyers of PHCs will now be subject to the same motor vehicle financing restrictions that apply to private car buyers.