Updated: 03/10/2013 07:26

More turning to car rental services for their rides

The new limits on car loans have prompted more potential car buyers to turn to car rental services for long-term leasing.

This after the Monetary Authority of Singapore announced the restriction of car loans to 60 per cent of purchase price.

The loan repayment period has also been limited to five years.

Car rental industry players say business has increased by up to 30 per cent over the past two weeks.

Some say they are expecting car rentals to go up within six months if Certificate of Entitlement premiums remain high.

Car rental owners say that many potential car buyers do not want to fork out so much on their down payments and would rather lease a car for between one and two years.