Motor dealers say private-hire loan curbs won't quickly ease COE pressure

Motor dealers in Singapore have cautioned that tightening loan restrictions for private-hire car purchases is unlikely to produce a rapid decline in Certificate of Entitlement prices, despite being positioned as a cooling measure for the sector.

The move to extend lending curbs to private-hire vehicle buyers reflects regulatory efforts to moderate demand pressures in the commercial vehicle market. However, industry observers suggest that any impact on COE valuations may take considerable time to materialise, given the complexity of market dynamics and existing supply constraints.

Dealer commentary indicates that while the financing restrictions target a specific buyer segment, the broader COE market responds to multiple variables including overall vehicle demand, import quotas, and economic conditions. The private-hire sector, which includes ride-hailing and taxi operators, represents a significant portion of new vehicle registrations but is just one component of total demand.

Market analysts note that COE prices have remained resilient despite previous regulatory interventions, suggesting that structural factors rather than single policy measures typically drive pricing movements. The effectiveness of the loan curb extension in moderating prices will likely depend on sustained implementation and complementary policy measures.