The 34 customers say they are each owed between a few hundred dollars and more than S$39,000, The Business Times reported.
The company and its director have not responded to media queries while its office was found closed during business hours, with numerous unopened letters from government agencies left at the entrance.
Police have confirmed that reports have been filed and investigations are underway. An unspecified number of customers have also taken their cases to the Small Claims Tribunals.
Incorporated as a private limited company in October 2023, Charlotte Vehicle offered customers leasing fees from just S$40 a day, below the industry norm of S$70-100.
Drivers, however, have faced issues in recent months, ranging from their vehicles being suddenly repossessed or recalled for reasons such as repairs and insurance matters, to defects and quality issues with the vehicles.
They have also had difficulties recovering money owed to them after terminating or canceling their rental agreements and returning the cars.
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A pedestrian waits at a crossing as cars drive along a street in Singapore on March 15, 2018. Photo by AFP |
One such case involving a 26-year-old customer made the news earlier this year. The customer told AsiaOne in March that he was still owed S$11,000 in advance fee and deposit refund after ending his contract with the company in February.
He had paid S$13,764 in advance fees to rent a car from January to December 2026. The company then told him in January that he would need to pay another S$3,888 in advance to continue the arrangement.
Deeming the additional payment unjustified, he terminated the contract, returning the car in February after the required two weeks’ notice.
But he had received only S$2,764 by mid-March. He said the company acknowledged the remaining debt in written messages but refused to release the funds. At the time, the company rejected his claims and said it was taking legal action against him.
The Charlotte Vehicle case comes as rental cars are becoming increasingly common in Singapore. They accounted for 14.9% of the city-state’s 653,442 cars at the end of June, up from 10.5% in 2021, according to The Straits Times.
A factor is the high cost of ownership. Singapore is the most expensive city in the world to buy a car due to the cost of Certificates of Entitlement required to own one. The certificates have cost between S$102,009-130,889 this year, up from S$65,010-116,002 in 2024.