3 years lock in period for vehicles registered from Feb 19 as business-owned private-hire cars, says LTA

[Daniu82]

https://www.channelnewsasia.com/singapore/private-hire-vehicles-lock-period-3-years-car-leasing-firms-lta-ncs-4945966?cid=internal_sharetool_iphone_19022025_cna

COE prices will drop? 

Edited February 19 by Daniu82

[Kopites]

On 2/19/2025 at 12:01 PM, Daniu82 said:

https://www.channelnewsasia.com/singapore/private-hire-vehicles-lock-period-3-years-car-leasing-firms-lta-ncs-4945966?cid=internal_sharetool_iphone_19022025_cna

COE prices will drop? 

A positive step imo. At least they are doing something instead of "years" long monitoring of the situation. 

Where is the accountability if info at such deem to has an impact on the volatility of coe pricing. 

Hmm....never mind....monitor again. 

Quoted from above article.

"However, due to an unintended release of information by our vendor NCS, which should not have happened, some industry players received notification of this new lock-in period before the planned announcement date,” the authority added.

[Lala81]

what's the loophole being addressed? 

People buying vehicles supposed to be under PHV business loan? then transfer to individual as way to get max loan?

[Jtis]

Actually, my own personal view is that new registration or conversion to PHVs should strictly be one way. They should not allow such PHV vehicles to get a free pass to convert back to being a private vehicle status. This stance will make some players in the industry think twice about their decisions.

For a couple of reasons. One being that if the leasing coys excessively purchase vehicles for leasing as PHVs in anticipation of exuberant demand, they can freely release it to private buyers if the leasing demand does not materialise. There is minimal loss to these coys. If forced to sell only as PHVs to other leasing buyers, the vehicles may incur much larger loss in value due to limitations in sales, and hopefully make these players more prudent in securing excessive stock.

Second is to protect private buyers from unscrupulous dealers. In a way, PHVs are like taxis in terms of mileage. They are used for commercial passenger ferrying purposes, so so why do we allow these cars to be offloaded to private buyers who may be none the wiser when buying the vehicles?  I bet it is not uncommon to rack up 100k - 200k mileage in 1-2 years for PHVs. But seriously, nothing stopping unscrupulous dealers from dialing back the mileage in 1-2 yr old cars, and selling it as a one lady owner low mileage used to fetch kids from school car.

I feel that when the PHV registration is so easy to switch, and not so easy for buyers to track the car's PHV status history, there is a clear loophole that people will exploit. The lock in is a good first step, but far from being enough.

[Tohto]

On 2/19/2025 at 12:35 PM, Lala81 said:

what's the loophole being addressed? 

People buying vehicles supposed to be under PHV business loan? then transfer to individual as way to get max loan?

PHV loan interest is sky-high, why even want to use PHV loan.

[Ct3833]

Why 3 years? Once registered, a  PHV should not allow to be converted , this is to prevent "low mileage " ex PHV cars flooding the used car market. 😄

So how ? COE will drop firther ? 

Edited February 19 by Ct3833

[Mockngbrd]

Yea, 3 years lock in way too short, at the very least 5 years. ccb pap

Edited February 19 by Mockngbrd

[Si4dr]

From the article:

"Chauffeured private-hire cars that are owned by individuals will also be exempt. Such vehicles are typically used both for providing ride-hail services and for personal trips."

So I bought a car & do Grab later not affected by the 3yrs lock-in period?

[macrosszero]

On 2/19/2025 at 1:27 PM, Tohto said:

PHV loan interest is sky-high, why even want to use PHV loan.

Because there are enough people with the YOLO mentality and live for the here and now. As long as can keep up with monthly installments then just go for it

[Unfazed]

On 2/19/2025 at 1:20 PM, Jtis said:

Actually, my own personal view is that new registration or conversion to PHVs should strictly be one way. They should not allow such PHV vehicles to get a free pass to convert back to being a private vehicle status. This stance will make some players in the industry think twice about their decisions.

For a couple of reasons. One being that if the leasing coys excessively purchase vehicles for leasing as PHVs in anticipation of exuberant demand, they can freely release it to private buyers if the leasing demand does not materialise. There is minimal loss to these coys. If forced to sell only as PHVs to other leasing buyers, the vehicles may incur much larger loss in value due to limitations in sales, and hopefully make these players more prudent in securing excessive stock.

Second is to protect private buyers from unscrupulous dealers. In a way, PHVs are like taxis in terms of mileage. They are used for commercial passenger ferrying purposes, so so why do we allow these cars to be offloaded to private buyers who may be none the wiser when buying the vehicles?  I bet it is not uncommon to rack up 100k - 200k mileage in 1-2 years for PHVs. But seriously, nothing stopping unscrupulous dealers from dialing back the mileage in 1-2 yr old cars, and selling it as a one lady owner low mileage used to fetch kids from school car.

I feel that when the PHV registration is so easy to switch, and not so easy for buyers to track the car's PHV status history, there is a clear loophole that people will exploit. The lock in is a good first step, but far from being enough.

Odo tampering will just continue. It’s teamwork. Else where to maintain strong demand for used cars? With cars genuinely showing the real mileage, who in the right mind would buy? Make majority new cars as PHVs, then push to stupid suckers as used “reasonable” odo. You earn I earn everybody earn, as part of the chain, sucker is the consumer. Why not? So easy to track Odo but donkey years also don’t want to enforce. Why handicap one hand when two are needed to make a clap, right? 😁

[13177]

On 2/19/2025 at 1:37 PM, Ct3833 said:

Why 3 years? Once registered, a  PHV should not allow to be converted , this is to prevent "low mileage " ex PHV cars flooding the used car market. 😄

So how ? COE will drop firther ? 

Thought you can find ex PHV cars selling in used car market? So even a car is registered under PHV, it is still can convert to private owner?

[Bezbee]

On 2/19/2025 at 12:35 PM, Lala81 said:

what's the loophole being addressed? 

People buying vehicles supposed to be under PHV business loan? then transfer to individual as way to get max loan?

 

On 2/19/2025 at 1:27 PM, Tohto said:

PHV loan interest is sky-high, why even want to use PHV loan.

So back to the question, what is the point behind the Lock-in period ?  I am confused ... 

Is there some statistics to justify that Business owned PHV are converting to individual license to warrant such a regulation?

Edited February 19 by Bezbee

[Beehive3783]

They should impose lock-in period equivalent to taxi COEs, i.e. 7 or 8 years. Thereafter, scrap and no renewal of COE.

CCB LTA

[Beehive3783]

On 2/19/2025 at 1:27 PM, Tohto said:

PHV loan interest is sky-high, why even want to use PHV loan.

Because many people don't have the 30/40% cash DP to go for bank loans and register as private car. So they turn to registering the car as PHV to gain access to 10 year loan with zero DP.

[Spidey10]

On 2/19/2025 at 2:11 PM, Beehive3783 said:

Because many people don't have the 30/40% cash DP to go for bank loans and register as private car. So they turn to registering the car as PHV to gain access to 10 year loan with zero DP.

indeed...my time was 50% DP!!! siong!

$0 DP and high interest is suicidal and unsustainable for the buyer....when sell, he/she will be jia lat 

Edited February 19 by Spidey10

[Inlinefour]

Minimum 

Ownership 

Period 

should be permanent 

but 3 years no fish prawn good lah 

anyway mileage will be 🫣🫣🫣

[Mancypher]

On 2/19/2025 at 12:23 PM, Kopites said:

"However, due to an unintended release of information by our vendor NCS, which should not have happened, some industry players received notification of this new lock-in period before the planned announcement date,” the authority added.

Waiting for someone to kena fine/jailed/sacked.. 🤣

[Beehive3783]

On 2/19/2025 at 2:27 PM, Spidey10 said:

indeed...my time was 50% DP!!! siong!

$0 DP and high interest is suicidal and unsustainable for the buyer....when sell, he/she will be jia lat 

We can't stop such people from buying cars. There will always be such people. Remember the time when there were 100% loans available to private cars?