Discouraging Excessive Sale of Cars by Disallowing Conversion of Rental Cars to Private Cars and Practices to Bypass Car Loan Curbs
- The Ministry for Transport explained that COE prices are high due to strong demand and fewer deregistrations, and disallowing conversion of rental cars to private cars would increase costs and reduce flexibility for the private-hire car market, affecting commuter services.
- Financial prudence measures like loan-to-value and tenure limits are in place, with penalties including loan rescission or reduction for false declarations, but these curbs do not apply to commercial vehicles to support business operations.
- The government is aware of practices to bypass car loan curbs but did not specify penalties, and current policies exclude rental, leasing, and commercial vehicles from loan limits to avoid constraining credit for business and livelihood needs.