But he now faces a bigger problem: involuntary bankruptcy and possible prosecution by the Land Transport Authority.
Leasing the car out seemed like a good idea then. Mr Lau, 36, could not afford to sell it as prices had fallen sharply.
He chanced upon Eazi Car Lease, which would pay him $1,100 a month for the car. This would help him service his 10-year loan's monthly instalment of $1,240.
But last June, Eazi Car Lease reported to the police that the Honda had gone missing when a 'customer' rented it and drove it to Malaysia.
A police spokesman said the case has been classified as 'cheating by impersonation'.
Meanwhile, Mr Lau is in a bind. He still owes the bank, OCBC, around $100,000 in outstanding loan. He could not obtain an insurance payout because his insurer, NTUC Income, is classifying the case as 'cheating' instead of 'theft' for now. The former is not covered by the policy.
OCBC has begun bankruptcy proceedings against Mr Lau and his wife, a sales coordinator and the loan guarantor.
So does Mr Lau, who also received summonses for $900 in parking fines, have any recourse?
Lawyer Vijai Parwani thinks so. 'The original owner may have recourse against the rental firm as the claim would be based on the agreement he signed with the firm,' he said.
Mr Lau engaged lawyers to demand that Eazi Car Lease pay up the amount owed to OCBC, as it had lost the car while it was in its possession.
But he got no response. 'We can't afford to pursue the case,' said Mr Lau.
When contacted, Eazi Car Lease director Jeremy Chong, 37, said he was no longer in the business. His father, John Chong, 67, who runs the firm now, refused to comment.
CHRISTOPHER TAN