S'pore car rental firm Focus Rentals allegedly ups S$82 daily rental rate to as high as S$130

Some private-hire car drivers have accused a car rental company in Singapore of abruptly raising rental rates, saying the increases were imposed without any warning.

They alleged that the daily rental fees rose from S$82 to as high as S$130, almost a 50 per cent increase.

Asked to sign a new package

Two private hire car drivers told Shin Min Daily News that they had rented cars from Focus Rentals, a company under Lumens, a few months ago.

The contracts they signed included insurance and stated a daily rental rate of S$82.

However, on Jan. 15, they were suddenly asked to visit the company to discuss a new package.

Under the new terms, the daily rental fee was as high as S$130 a day.

The drivers said they were told they would have to return their cars if they did not accept the changes.

Suspected it had something to do with Autobahn

One of the drivers, surnamed Xu (transliteration), told Shin Min that he has been renting cars for almost 20 years with different companies and had never encountered such a sudden increase in rental fees.

He questioned whether the price hikes were linked to recent disruptions in the car rental market following issues faced by competitor Autobahn Rent A Car.

Autobahn has been hit by severe financial difficulties, with previous reports stating that it owed over S$300 million to creditors, including DBS, UOB, OCBC and Maybank as of Dec. 23, 2025.

Its attempt to obtain a six-month moratorium was later withdrawn, and insurers terminated policies for affected vehicles, preventing them from being driven on the roads.

In an announcement on Jan. 7, about 1,700 Autobahn vehicles were set to be repossessed and returned to creditors.

The drivers said they had signed a three-year contract in hopes of securing stable terms, but were later told the agreement contained a clause allowing the company to review and terminate the lease at any time, Shin Min reported.

Xu asked:

"If the company can change the contract according to their own interests, what’s the point of the contract term?"

Xu added that though the new package offered a S$500 rebate every six months over three years, the rebate would only be paid out three times, while drivers would continue to pay S$130 a day.

He also expressed concern that the terms set out in the new package could be changed again later.

In view of this, both drivers told Shin Min that they decided to terminate their leases.

Company: Rental fee revisions not driven by their competitors

In an interview with Shin Min, the company's executive director, Zhan Shunquan (transliteration), said the company began re-evaluating its packages in September 2025 and found that some rates were "too low".

He said more than 300 contracts had been reviewed so far, with about 100 customers choosing not to renew them, and fewer than 5 per cent lodging complaints.

Zhan added that customers were given one month’s notice before any adjustment, and those unhappy with the changes could choose to terminate their contracts.

He said the company needed to revise pricing to remain viable.

Zhan also shared that many of the adjusted packages involved Toyota Corolla Cross vehicles, which he said cost around S$180,000, but brought in only a few thousand dollars in monthly rental income.

This is barely enough to cover costs, he said, adding that such vehicles often clock high mileage, limiting their resale value after the 10-year certificate of entitlement (COE) expires.

Zhan highlighted that the rental fee adjustment was less than 50 per cent, and as long as drivers do not get into car accidents during the rental period, they would receive a rebate every six months, bringing the daily rental fee to about S$107.

He also said the changes were not linked to Autobahn.

Separately, the manager of Dream Car Rental said the company does not make changes to rental prices once contracts are signed.

"We’ll charge the price stated in the contract. Even if we raise prices, it will only apply to new customers," he said.

While demand for car rentals has risen, he said the company has no plans to increase prices for now, noting that the market is highly transparent and customers can easily compare rates online.

This makes sudden price hikes risky for business.

Top photos via Shin Min Daily News