Singapore’s Land Transport Authority (LTA) has recently announced new and tighter regulations on the sale of private-hire vehicles (PHVs).
Effective from 19 February 2025, companies must retain ownership of their private-hire vehicles (PHVs) intended for ride-hailing services for a minimum of three years before selling them to individuals.
This move aims to address concerns about the rapid turnover of PHVs into the private car market, which has implications for both vehicle oversupply and Certificate of Entitlement (COE) quotas.
Previously, companies could sell their PHVs to private buyers after a relatively short period. However, the new regulation mandates a three-year holding period, meaning vehicles registered for ride-hailing purposes cannot be transferred to individual ownership until they have been in service for at least three years.
The LTA believes this measure will help stabilise the vehicle population by reducing the influx of used PHVs into the private car market, ensuring that the overall number of vehicles remains more controlled.
In addition, this policy will allow COE quotas to be managed more effectively, preventing a sudden surge of second-hand vehicles that could distort market demand.
This policy adjustment carries significant implications for various parties. Ride-hailing companies will need to adjust their fleet management strategies, ensuring vehicles are maintained for longer periods.
Drivers looking to purchase used PHVs may find a reduced supply in the market, potentially leading to higher prices. On the other hand, those who rent their vehicles might experience more stable rental rates due to the extended use of existing fleets.
For consumers, the extended holding period might raise concerns about the quality and condition of PHVs. However, with proper maintenance and regular servicing, companies can ensure that older vehicles remain roadworthy and provide a comfortable experience for passengers.
The effects of this policy will unfold over time, but it is clear that the LTA aims to create a more sustainable and balanced vehicular ecosystem in Singapore.
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