Last updated on February 13th, 2026 at 03:13 pm
The recent news from CNA has sent shockwaves through the private-hire community: More than 220 car leasing firms in Singapore have ceased operations in the past year. With major players like Autobahn Rent A Car facing massive debt and Shariot suspending services, hundreds of drivers have been left stranded—losing their deposits, facing expired road tax, and seeing their “tools of the trade” repossessed by creditors.
At EZ Pte Ltd, we believe your finances should be in your hands. In this post, we break down why the leasing model is struggling and why 2026 is the year to consider owning your vehicle through a regulated car loan.
Why the Car Leasing Industry is Under Upheaval
The CNA report highlights a “perfect storm” that caused 12% of the industry to shutter:
- Unsustainable Price Wars: Many new leasing firms offered rates below $100/day—a price that veteran operators say is impossible to sustain given Singapore’s high COE and maintenance costs.
- Over-Leveraged Business Models: Companies took on excessive debt to grow their fleets. When interest rates rose, these “house of cards” models collapsed.
- Repossession Risks: When a leasing firm fails to pay its creditors, the driver pays the price. Even if you’ve paid your rent, the bank can still tow the car away.
Leasing vs. Owning: The Case for a PHV Car Loan
For many drivers, leasing was once the “easy” choice. But as we’ve seen, it’s also the most vulnerable. Here is why a personal or car loan from a licensed moneylender is a safer long-term strategy:
1. Asset Ownership
When you take a loan to buy a car, the vehicle belongs to you (subject to the loan). You aren’t at the mercy of a leasing company’s financial stability. If they go bankrupt, your car stays in your driveway.
2. Protecting Your Deposit
Many drivers lost $500 to $3,000 in deposits when Autobahn and others folded. With a loan from EZ Pte Ltd, there is no “rental deposit” to lose. Your money goes toward equity in your car.
3. Controlled Costs
Leasing rates can change, and companies can add hidden fees for maintenance or insurance. With a regulated loan, your repayment schedule is fixed, transparent, and protected by the Ministry of Law’s 4% interest cap.
How to Secure a PHV Loan if You Are a PHV Driver?
If you are currently leasing from a firm and are worried about its stability:
- Check Your Rental Agreement: Read through your contract agreements, ensure your contract is ending soon or any fees for ending your contract early.
- Look for trusted car dealers: Look for the vehicle you wish to purchase and the right price point you are comfortable with.
- Talk to our loan officers: Our loan officials will guide you through the rest of the process of getting a PHV loan.
How EZ Pte Ltd Supports Private-Hire Drivers
We know that PHV drivers often have “lumpy” income or might be rejected by traditional banks due to strict TDSR rules. We offer a different approach:
- Fast Approval for PHVs: We understand your business model. We provide quick cash for down payments or full vehicle financing.
- Singpass Integrated: Apply safely and get your results in minutes.
- Stable & Regulated: Unlike fly-by-night leasing firms, we are a Licensed Moneylender with a long track record of compliance and transparency.
Don’t let a leasing firm’s debt become your disaster. Secure your future on the road with a partner you can trust. Contact us now.
