Singapore EV Charger Network Growth: PHV Drivers Are Switching
Starting as a private hire vehicle driver in Singapore is exciting, but it also comes with one big question: should you rent or buy a PHV car?
For drivers on platforms like Grab, Gojek or TADA, the decision is not just about monthly cost. You also need to think about upfront cash, COE prices, insurance, accident excess, servicing, flexibility, and how long you intend to drive.
With COE premiums still high in Singapore — Category A closed at S$123,010 and Category B at S$121,001 in the second April 2026 bidding exercise — buying a car requires serious capital before you even start earning from private hire driving. (sgcarmart)
That is why many new and experienced PHV drivers choose PHV car rental or leasing instead of buying. In this guide, we compare both options so you can decide which makes more sense for your driving plans.
Common Question: Should You Rent or Buy a PHV Car?
For most new PHV drivers, renting or leasing is usually the better starting point because it requires lower upfront cash, gives you more flexibility, and includes major running costs such as insurance, servicing and maintenance.
Buying may make sense if you are financially prepared, intend to drive the same car for 7 to 10 years, and have enough cash for the downpayment, insurance, repairs and unexpected costs.
Choose PHV Rental If…
- You are new to PHV driving
- COE prices are high
- You prefer lower upfront cost
- You want to change cars every 2-3 years
- You prefer hassle-free driving
Choose Buying If…
- You are sure you will drive long term
- You want to keep the same car for 7-10 years
- You have at least 30%-40% of the car price in cash
- You are comfortable handling insurance, repairs and depreciation
- You want ownership and full control of the vehicle
When Should You Lease a PHV Car?
Leasing is a practical choice when you want to start driving without committing a large amount of cash upfront. For many drivers, this is especially important because PHV income can vary depending on driving hours, platform incentives, demand, fuel cost and personal schedule.
1. You Are New to PHV Driving
If you are new to private hire driving, leasing allows you to test whether PHV work suits your lifestyle. You may want to find out:
- How many hours you can realistically drive each week
- Whether Grab, Gojek or TADA income meets your expectations
- Which car type suits your driving style
- Whether you prefer full-time or part-time driving
Buying a car immediately can lock you into a long financial commitment before you know whether PHV driving is right for you.
With PHV car rental, you can start with a lower commitment and adjust later.
2. COE Prices Are High
Car ownership in Singapore is heavily affected by COE. When COE premiums increase significantly, the purchase price of a car also rises. For drivers who mainly want a car to generate income, this can make buying a PHV car much harder to justify.
Leasing helps you avoid paying the full COE-heavy vehicle cost upfront. Instead, you pay a rental package that gives you access to a PHV-ready car without tying up tens of thousands of dollars in cash.
3. You Want Lower Upfront Cost
Buying a car for PHV use may require around S$57,000 cash upfront, or at least 30% to 40% of the total purchase price as downpayment.
By comparison, renting a brand new PHV car with Velocity Leasing can start from a much lower deposit, at $$800.
This lower entry driveaway cost is one of the biggest reasons drivers choose leasing. Instead of using your savings on a car downpayment, you can preserve cash on other non-vehicle related expenses.
4. You Intend to Change Cars Every 2–3 Years
Some PHV drivers prefer changing vehicles every few years to enjoy newer models, better fuel efficiency, improved comfort, or newer hybrid and EV options.
If you buy a car, changing vehicles can be costly because you need to deal with resale value, loan settlement, depreciation, and market conditions.
Leasing gives you more flexibility. At the end of your rental or lease term, you can choose another vehicle that better matches your needs.
5. You Prefer a Hassle-Free Driving Experience
For PHV drivers, downtime means lost income. If your car needs servicing, repairs, insurance renewal or unexpected maintenance, it can affect your ability to drive and earn.
With Velocity Leasing, maintenance and servicing are included in the rental package, reducing the stress of managing the car yourself.
When Should You Buy a PHV Car?
Buying can still make sense for certain drivers. However, it works best when you are financially ready and confident about your long-term driving plans.
1. You Intend to Drive the Same Car for 7 to 10 Years
Buying may be suitable if you are sure you want to use the same car for most of its COE lifespan.
This gives you more time to spread out the cost of ownership. However, you must be prepared for long-term expenses such as:
- Road tax
- Insurance
- Tyres replacements
- Wear and tear replacements
- Repairs
- Servicing
- Accident excess
- Depreciation
- Loan interest
For PHV drivers who drive high mileage, the car may also wear out faster than a normal personal-use vehicle.
2. You Have Enough Cash for the Downpayment
If you want to buy a PHV car, you should have around S$57,000 cash on hand or at least 30% to 35% of the vehicle price ready for downpayment.
This is before adding insurance, road tax, maintenance, fuel, parking and other running costs.
Buying gives you ownership, but it also means you carry the financial risk. If your driving income drops, if the car needs repairs, or if you decide PHV driving is not for you, you are still responsible for the vehicle costs.
Comparison: Buying vs Leasing a PHV Car in Singapore
Here is a practical comparison for private hire drivers
So, Is It Better to Rent or Buy a PHV Car
There is no one-size-fits-all answer.
Rent or lease a PHV car if you want flexibility, lower upfront cost and a hassle-free experience. This is usually the better choice for new PHV drivers, part-time drivers, and drivers who want to avoid the heavy cost of car ownership in Singapore.
Buy a PHV car if you are financially prepared, committed for the long term, and comfortable managing all ownership costs yourself. This may suit experienced drivers who are confident they will drive the same car for 7 to 10 years.
For most people starting out, leasing is the safer and more practical first step.
Start PHV Driving with Velocity Leasing
At Velocity Leasing, we make it easier for private hire drivers to get started with lower upfront cost, flexible rental options, and maintenance included in your package.
Whether you are new to PHV driving or looking for a more hassle-free rental experience, our team can help you choose a car that fits your budget and driving plans.
Looking for PHV car rental in Singapore? Contact Velocity Leasing today to check available cars, deposits and rental packages.
FAQ
Is it cheaper to rent or buy a PHV car in Singapore?
Renting usually has a lower upfront cost because you do not need to pay a large downpayment. Buying may be cheaper in the long run only if you drive the same car for about 7 to 10 years and can fully manage insurance, maintenance, repairs and depreciation.
How much deposit do I need to lease a PHV car?
A brand new car deposit is S$800 at Velocity Leasing.
Is insurance included when I lease a PHV car?
Yes, insurance is included in the rental package signed with Velocity Leasing. You can also add Collision Damage Waiver at S$6/day to reduce the accident excess.
What is the accident excess for Velocity Leasing?
Without Collision Damage Waiver, the accident excess is S$2,500 / S$2,500. With Collision Damage Waiver at S$6/day, the accident excess is reduced to S$500 / S$500.
Is servicing included in PHV car rental?
Yes. For Velocity Leasing rental packages, maintenance and servicing are included. This helps PHV drivers reduce unexpected servicing costs and downtime.
Who should lease a PHV car?
Leasing is suitable for new PHV drivers, part-time drivers, drivers who want additional income, and anyone who prefers lower upfront cost and hassle-free vehicle maintenance.
Who should buy a PHV car?
Buying may be suitable if you intend to drive the same car for 7 to 10 years, have at least 30%–35% of the car price in cash, and are comfortable managing insurance, servicing, repairs and depreciation.
