The Monetary Authority of Singapore (MAS) announced that individuals, including sole proprietors, buying cars registered for private hire will face the same financing restrictions as other private car buyers from 30 October 2026. The change closes an exemption previously granted on commercial use grounds. Registrations of individually owned private hire cars for self-drive use have recently surged to about 500 a month, suggesting some buyers are using the exemption primarily to obtain more permissive financing. The maximum loan-to-value (LTV) ratio will be 70% for cars with an Open Market Value (OMV) of SGD 20,000 or less and 60% for cars above that threshold. The purchase price used to calculate LTV includes relevant taxes and the Certificate of Entitlement (COE) price, where applicable. Financing terms will be capped at seven years. The restrictions cover loans from financial institutions and licensed or exempt moneylenders, as well as hire purchase and conditional sale agreements. The limits apply where sales agreements are signed on or after 30 October 2026. Where there is no sales agreement, the COE acquisition date determines whether the restrictions apply. Commercial vehicles, business owned private hire cars and motorcycles remain exempt. The government will take further steps to apply the same restrictions consistently across financing arrangements, such as loans provided in house.
MAS extends car financing limits to individual buyers of private hire cars from 30 October 2026
The Monetary Authority of Singapore will extend private car financing restrictions to individuals buying private hire cars from 30 October 2026, closing an exemption used by some buyers to obtain more permissive financing. Loans will be capped at 70% of the purchase price for cars with an Open Market Value of up to SGD 20,000 and 60% above that threshold, with a maximum term of seven years. Commercial vehicles, business owned private hire cars and motorcycles remain exempt.