COE in Feb after new transportation policies on Jan 30

[Zhizunbao]

New transportation policies on Jan 30 are summarized by Bro Ahyoo2002 as follows:

 

1)More ERP, Minister Lim said 16 new gantries will go on between April and November, bringing the total number in operation to 71. This is just the start.

 

2)The base ERP rate will be upped from $1 to $2, with the increments in $1 instead of the current 50 cents.

 

3)Road tax will be cut by 15 per cent across the board

 

4)Annual allowable growth rate - a minor component in a formula that determines COE supply - will be halved to 1.5 per cent from April 2009.

 

5)10% cut in ARF in March

 

6)More expressways will be built and the Central Expressway widened to ease the perennial traffic woes among the northern corridor.

 

Effects could be:

1) Demand for Cat A COE in 2008 will significant drop becuase of increased ERP and economy recession. Cat B won't be affected much as rich ppl don't care more ERP.

 

2) COE supply in 2009 won't drop by 12,000 as more replacement come out as more ppl may scratch cars due to higher keeping/usage cost.

 

3) Ready buy-in buyer who had waited for ARF cut announcement will go in for 2nd bid in Feb and register in March. (Is its timing right? pls correct me.)

 

My prediction:

1st Feb Cat A bid - drop to 10K

2nd Feb / 2 Mar bids - go up to 12K

April onwards bids - back to 10K (if Economy not recover)

So good time to buy after 1st Feb bid to enjoy price cut after further COE drop.

[Cheekg98]

next election, we shall remember all these

[Dennisk]

[Mivec9]

see how long the peasants can stand the squeeze. no oil liao still continue to go thru the sugarcane machine

[Leepee]

Many people will be asking the SE to delay the car registration till March?

 

It seems that there is no mentioned that the reduced ARF will need March COE, so does this mean that Feb COE can also be used to register for lower ARF in March? Any one know the answer?

 

If only March COE is valid, then it will be very sure that next week COE will crash because many buyer will not want Feb COE since they cannot enjoy the 10% discount!

 

I must talk to my SE to renegotiate on the 10% cheaper car price. I hope they have management decisions by this weekends.

[Typhoonz]

For the GE period, road tax rebate, ERP go down, fuel prices reduced, give free money...etc. The gahmen will do anything to entice you to bring their votes up pass the 66.6%... Then after that, it's back to normal...

[Toyo]

When ARF was cut from 130% to 110% in 2004, COE actually went up for a few months

[Ahyoo2002]

From the news, it seems to me that as long as you registered your car in March, you enjoy the 10% cut in ARF.

 

Previously, the cut in ARF always tie to whichever month of COE that you obtained.

 

Any SE here can comment?

 

I think it is too early to tell how much COE premium will be as it depend on many factors such as economy, cost of living, want to change but did they stuck with high loan, .....................

 

But hor, car dealers in the news all try to scrare people into buying now so as to avoid high COE next year. Initially they expect the COE quota/growth rate cut from this year, so they have been saying that the COE will shoot up from year 2008, but now they said next year is very bad.

 

But, US economy is nowhere good, "Economy Nearly Stalled in 4th Quarter; Suffers Worst Year Since 2002":

http://biz.yahoo.com/ap/080130/economy.html

[Ahyoo2002]

From the news, it seems to me that as long as you registered your car in March, you enjoy the 10% cut in ARF.

 

Previously, the cut in ARF always tie to whichever month of COE that you obtained.

[Ahyoo2002]

not back to normal lah, they give you $1, they take back $5

[Miles]

3)Road tax will be cut by 15 per cent across the board.

 

Currently, our roadtax has 8% discount.

Will the new roadtax be 8+15% discount? or only 15% across the board.

If that's the case,.... its only 7% more discount.

[Walterkoh]

hi all,

wrong perception. gahmen also "cho luan" cos previously the policies changed took immediate effect, but this time round, its the following month.

 

only coe bidded in march will enjoy the 10% reduction, not just cars registered in march. for coe bidded before march, u still pay the same ARF!!!

 

hope it clears some of the doubts

[Zanter]

I think its only 7% cos . They say 15% permanent discount. Previously the 8% was a temp discount

[Miles]

Cannot look at it this way.... its transferring wealth from the rich to the poor.

The rich pay $4 more for driving... the poor pay $3 less for taking public transport, or pay the same, but get improved public transport system.

 

PTC will now have to regulate the fare price better and QoS dish out by Comfort Delgro.

[Typhoonz]

Oh yeah ah... Must also make up for the campaigning costs mah... Also must pay for their new all whites...

[Ahyoo2002]

Wah, really?

 

Then next month COE will drop loh since can not enjoy the 10% discount.

[Ahyoo2002]

I think I read somewhere it said 15% is on top of 8%.

[Zanter]

If so then its good news