COE revamp suggestions

[howgozit]

The COE system really needs a re-look and revamp. Unfortunately, it is impossible to do away with.

If LTA listens only to the auto industry alone for a revamp, there won't be much improvement because these agencies are self-serving. In the end the elevated costs are still passed to the consumer and the consumer is the one saddled with huge loan on a depreciating asset (or should I say liability).

Associated services like financiers, insurers, after-sales ... etc stand to benefit from inflated car prices. This also benefits car dealers as well bcoz they in turn get a cut from the referrals.

How about we pretend that we are LTA. Let's brainstorm some ideas on how to revamp the COE system.

[howgozit]

I'll start the ball rolling.


1. COE cost cannot be loaned.
2. Pay as you bid - not pay the lowest strike price.

[howgozit]

1. COE cost cannot be loaned.
2. Pay as you bid - not pay the lowest strike price
3. Car buyers to bid COEs on their own instead of dealers bidding for them

[repanse71]

1. COE cost cannot be loaned.
2. Pay as you bid - not pay the lowest strike price
3. Car buyers to bid COEs on their own instead of dealers bidding for them

Pro family policy.

Every singaporean given ONE 10% dependent COE rebate voucher.
Each car can be register with max of 4 dependent rebate vouchers.

So for the following familes, all entitled max 40% rebate
1) husband, wife, 3 children
2) husband, wife, 2 parents and handicapped sibling.
3) widowed husband/wife, 2 children and 2 parents
....

[ikan bilis]

1. COE cost cannot be loaned.
2. Pay as you bid - not pay the lowest strike price
3. Car buyers to bid COEs on their own instead of dealers bidding for them

.... what if dealers selling all the new cars as second-hand car ??....

[howgozit]

.... what if dealers selling all the new cars as second-hand car ??....

Second hand cars come with COEs right?

So what you are saying is that dealers buy the COEs first and then sell them back to car buyers with a car.

Sure it can happen but that's a big risk to the car dealers is it not? The car dealer cannot have a binding contract to ensure that a buyer purchases the car after the dealer has secured a COE.

Its an even bigger risk if they buy COEs without confirming a buyer. I imagine dealers for Cherry QQ would go bankrupt.

[Ringo33]

car dealers should never be the one to bid for COE, there is a major conflict of interest

[samuelk]

increase the scrap value of cars from 8 years onwards and allow the industry to transfer COE for cars beyong economical repair

All new cars to have min. two front airbag and traction control . Taxis included factory fitted ABS.

This would not only increase the rate of scrap as well as ensure that the cars that are paid are safe. Else to increase the profitability may result in a less then safe car.

[focus]

If the purpose of the COE is to control the vehicles on-road by having a quota, then it should not be linked with monetary values. It should have been balloted monthly and it all boils down to your LUCK(like HDB BTO).

However, since the govt. wishes to earn money from the COE to offset some expenses from providing transport infrastructure, then the best of both worlds would be to :-
1) Every buyer put in a bid(of his desire, not the motor companies decision).
2) This bid will be put into a balloting system for draw monthly
3) If quota is 100 for the month, the 1st 100 drawn from the balloting will PAY the MEDIAN of the bids(after eliminating the top 20% highest price bids and the bottom 20% loweest price bids).

To prevent profiteering:-
1) COE cannot be transferred for the 1st year.
2) When sold off or scrap, COE is NON-REFUNDABLE(No pro-rata).
3) Allow the same COE to be used if you change car(like now). However, cannot be sold off for 1 yr again.

But I know this system will not materialise since govt is interested more in maximising the value from the COE system . The lesser evil is that Only RICH can play the game which is acceptable to the govt.

[DC33_2008]

My colleague wrote to Mr Lui yesterday and received a reply very quickly that they will revert soon. His perm sec must be busy.

[howgozit]

Wrt balloting, its not just about making money.

If there is ballot system, every eligible person (including PRs, foreigners) will ballot at every COE exercise. Since there is no cost involved. Even if they have no intention to own a car.

What if you own a business or in a job that requires a vehicle, then how? Must wait until you strike the COE lottery?

Meanwhile the resale car prices will skyrocket... since new cars are by the luck of the draw. If the demand is what it is now, prices of cars will still hover around where they are now.

Quite hard to work I think.

If the purpose of the COE is to control the vehicles on-road by having a quota, then it should not be linked with monetary values. It should have been balloted monthly and it all boils down to your LUCK(like HDB BTO).

However, since the govt. wishes to earn money from the COE to offset some expenses from providing transport infrastructure, then the best of both worlds would be to :-
1) Every buyer put in a bid(of his desire, not the motor companies decision).
2) This bid will be put into a balloting system for draw monthly
3) If quota is 100 for the month, the 1st 100 drawn from the balloting will PAY the MEDIAN of the bids(after eliminating the top 20% highest price bids and the bottom 20% loweest price bids).

To prevent profiteering:-
1) COE cannot be transferred for the 1st year.
2) When sold off or scrap, COE is NON-REFUNDABLE(No pro-rata).
3) Allow the same COE to be used if you change car(like now). However, cannot be sold off for 1 yr again.

But I know this system will not materialise since govt is interested more in maximising the value from the COE system . The lesser evil is that Only RICH can play the game which is acceptable to the govt.

[DC33_2008]

Remove COE and make people pay based on usage rate since GPS ERP is already in the testing phase.

[richwang]

There are 1 M cars in Singapore, each will last for 10 years.
So the annual quota should be 100K per year.
Each year has 24 bidding sessions, so each bidding session should have
100K / 24 = 4K Quota.
Just maintain this stable supply, the price stability will be much better.

Currently there are only 1.5K supply per session.
(And there will be 10K? supply per session in year 2015).

Thanks,
Richard

[howgozit]

There are 1 M cars in Singapore, each will last for 10 years.
So the annual quota should be 100K per year.
Each year has 24 bidding sessions, so each bidding session should have
100K / 24 = 4K Quota.
Just maintain this stable supply, the price stability will be much better.

Currently there are only 1.5K supply per session.
(And there will be 10K? supply per session in year 2015).

Thanks,
Richard

This is dependent on the amount of cars being scrapped at each point in time. Some cars get scrapped after 2 or 3 years where others drive on for 20 or even 30 years.

The quota will shift according to the existing number of cars on the road... and since the rate of scrapping is not fixed, the quota size cannot be fixed either.

[hyenergix]

If LTA is reading this, my idea is to levy BSD on foreigners for passenger vehicles.

[kane]

i second the idea of pay as much as you bid.

those lux cars with small turbo charged engine should be in a Cat A+, separate from the basic Cat A category.

[Rosy]

Interest rate for car loan may increase soon.

20% cash downpayment could be mandatory.

[Shanhz]

reverting back to 30% down and 7 yrs loan cap as per the yester years will ensure a stable mkt. those who can't afford new car just buy 2nd hand. last time the mkt was like that and it was very stable.

but now alot of rich pple around, not like last time. so there has to be some mechanism for singaporeans to be able to own their 1 car allocation. but how to allocate will be a tough nut to crack. by person/address - all these can be circumvented.

[howgozit]

reverting back to 30% down and 7 yrs loan cap as per the yester years will ensure a stable mkt. those who can't afford new car just buy 2nd hand. last time the mkt was like that and it was very stable.

but now alot of rich pple around, not like last time. so there has to be some mechanism for singaporeans to be able to own their 1 car allocation. but how to allocate will be a tough nut to crack. by person/address - all these can be circumvented.

Its not tough, its impossible.

There more people than cars allowed.

[buttercarp]

If LTA is reading this, my idea is to levy BSD on foreigners for passenger vehicles.

Some suggestions:

Foreigners pay 200% of the COE price.

SPR pay 100% of COE price.

SC get 50% rebate from the COE price.

[sh]

Remove COE and make people pay based on usage rate since GPS ERP is already in the testing phase.

Prepare to have a lot more parking lots... People will buy more cars and select which car to drive...

[sh]

i second the idea of pay as much as you bid.

those lux cars with small turbo charged engine should be in a Cat A+, separate from the basic Cat A category.

Engine capacity can no longer be used... Electric car where got engine capacity... Category should go by how powerful the car is... Close loop hole on turbo, hybrids...

[adrianmtsg]

Just my thoughts

- Change the mindset of owning a car in Singapore. We all perceived that a car ownership is cool and atas. Its like smoking were well received until images alter how we look at it now.

- Public transport need to be improved. With influx of foreigners, it can becomes quite unpleasant for taking buses and MRT now. Maybe they should not privatize them giving me an impression that their profit comes way before service.

- Remove or reduce carparks. Concentrate with a mega carpark in certain MRT stations. So perhaps we will all start parking there and proceed with public transport.

[ysyap]

Remove COE and make people pay based on usage rate since GPS ERP is already in the testing phase.

Govt wants to earn both from COE and ERP... Next time there'll be ERP deduction whenever you drive out of your home carpark...

[minority]

out law all cars. only commercial or business n public transport have car. rest walk , bike or take public transport.

wah lah! solve high COE problem and traffic jam!

[minority]

Govt wants to earn both from COE and ERP... Next time there'll be ERP deduction whenever you drive out of your home carpark...

no $ to pay better dont drive. take public transport loh. so concern tax. all these are consumption tax. u consume u get tax. dont want to pay? have a choice dont consume!

[richwang]

Everything has its fair price. The fair price for COE is around S$20K as per the following calculation:

The average quota for yearly COE should be 100K if the seller has done a decent job to smooth the supply. The expected revenue from COE is S$2B per year. So the fair price for COE is

S$2B / 100K = S$20K

The officers who caused the COE price to drop to S$2 should be fired, as well as those who will push the COE price to beyond S$150K (soon?)

Thanks,
Richard

[Rosy]

Everything has its fair price. The fair price for COE is around S$20K as per the following calculation:

The average quota for yearly COE should be 100K if the seller has done a decent job to smooth the supply. The expected revenue from COE is S$2B per year. So the fair price for COE is

S$2B / 100K = S$20K

The officers who caused the COE price to drop to S$2 should be fired, as well as those who will push the COE price to beyond S$150K (soon?)

Thanks,
Richard

Hi just curious why the expected revenue is 2 bil?

[minority]

Everything has its fair price. The fair price for COE is around S$20K as per the following calculation:

The average quota for yearly COE should be 100K if the seller has done a decent job to smooth the supply. The expected revenue from COE is S$2B per year. So the fair price for COE is

S$2B / 100K = S$20K

The officers who caused the COE price to drop to S$2 should be fired, as well as those who will push the COE price to beyond S$150K (soon?)

Thanks,
Richard

just curious how u come up with a fair price? its bidded where more people feel rich bid higher. make $ in share or property go cheong cars.

so how to fair priced it?

lucky draw ? or national car lottery? or base on 1st alphabet of the sir name?

[minority]

in land scare singapore. car should be a luxury.. take public transport. if u need a car means u have to be willing to pay for it. coz its a luxury.

car is not a birth right. u are born with legs not wheels.