Why Cant i retain my COE and change car??

[Doraemarc]

juz pondering... when i bid a COE, i am entitled to own a car for next 10yrs right? den y cant i simply scrap away the current car and change a new ride while retaining the COE?

 

let's say this scenario:

 

One got a COE at $2 2yrs back. somewhere last yr got into major accident, but not BER thus insurance only pay for repairs not new car. but since then the car been giving a lot of prob so owner feel like changing car. but with the current crazy COE price, how to change car?

 

but if he is able to scrap current car and buy another car under his COE, he is not contribute to any vehicle growth wat. den e new car ownership will base on the length of COE remaining instead of 10yrs so y cant LTA think of this?

 

The abovementioned case is purely fabricated for illustration. Any coincidence is unintended so pls dun ask me for driver/car/accident details

[Little_prince]

because the govt is not so stupid to give up such a lucrative source of revenue....

[Doraemarc]

well.. apart from monetary benefits.... y cant they really think for citizens for once?? haiz...

[Little_prince]

they have a higher macro kpi to think of -> reduce the cars on the road

 

you are just looking at the micro picture ( your own)

 

they are planning longer term macro scenario planning...

 

 

[Darthkk]

juz pondering... when i bid a COE, i am entitled to own a car for next 10yrs right? den y cant i simply scrap away the current car and change a new ride while retaining the COE?

 

let's say this scenario:

 

One got a COE at $2 2yrs back. somewhere last yr got into major accident, but not BER thus insurance only pay for repairs not new car. but since then the car been giving a lot of prob so owner feel like changing car. but with the current crazy COE price, how to change car?

 

but if he is able to scrap current car and buy another car under his COE, he is not contribute to any vehicle growth wat. den e new car ownership will base on the length of COE remaining instead of 10yrs so y cant LTA think of this?

 

The abovementioned case is purely fabricated for illustration. Any coincidence is unintended so pls dun ask me for driver/car/accident details

 

The COE is attach to the car not the owner, so a car with COE will last 10 years, not the owner who bidded the COE.

That's why when you buy a used car you need not bid for COE again, even if you are a first time car owner.

So now if you want to buy a car with $2 COE you still can, just search through the Used Cars section

 

Edited November 24, 2010 by Darthkk

[Doraemarc]

they have a higher macro kpi to think of -> reduce the cars on the road

 

you are just looking at the micro picture ( your own)

 

they are planning longer term macro scenario planning...

 

well... e need to reduce cars on road is due to them looking at their own micro picture to make more money years back den now they claim watever macro picture they looking at r at the expense of their very citizens....

[Doraemarc]

The COE is attach to the car not the owner, so a car with COE will last 10 years, not the owner who bidded the COE.

That's why when you buy a used car you need not bid for COE again, even if you are a first time car owner.

So now if you want to buy a car with $2 COE you still can, just search through the Used Cars section

 

so y not rename the piece of paper to 'car number license tax' or watever rather than 'Certificate of Entitlement'? since it's entitlement, shldnt it tag to owner rather than car?

 

anyway juz pondering only la... cos looking at the rate e COE is rising, seems i gotta drive my Fit till COE ends in 2018 le... kinda regret not getting a bigger car when COE was lower.....

Edited November 24, 2010 by Doraemarc

[Benarsenal]

Entitlement to drive the car on the road.

 

Not entitlement to the owner.

[Ben5266]

When we got COE at $40k and then COE come down to $2k, we can "cash" our remaining $ and govt never complain.

So, same thing, if we got $2 COE and now COE $40k and suay suay the car gives problem, then suck thumb and move on lor. This is risk. Something out of our control and we take for granted that it will not happen.

[SimonTan]

"but if he is able to scrap current car and buy another car under his COE, he is not contribute to any vehicle growth wat."

When you scrap your old car and buy a new one(with new COE), you are EXACTLY not contribution to any vehicle growth. The old COE will get recycled back into the quota system!

 

 

 

[Little_prince]

so y not rename the piece of paper to 'car number license tax' or watever rather than 'Certificate of Entitlement'? since it's entitlement, shldnt it tag to owner rather than car?

 

anyway juz pondering only la... cos looking at the rate e COE is rising, seems i gotta drive my Fit till COE ends in 2018 le... kinda regret not getting a bigger car when COE was lower.....

 

you dumb dumb

 

entitlement refers to the goverment entitlement to your money. that's all.

 

you don't have any entitlement per se.

 

[laugh]

[Nf0rc3r]

Now COE price rising of cos now u think of this.

COE price falling u also hope u can faster get refund on ur high COE

and bid for new lower COE to lower ur car depreciation the govt never complain say u cannot do that wat.

Edited November 24, 2010 by Nf0rc3r

[Doraemarc]

Now COE price rising of cos now u think of this.

COE price falling u also hope u can faster get refund on ur high COE

and bid for new lower COE to lower ur car depreciation the govt never complain say u cannot do that wat.

 

sounds true... though having a higher COE means higher selling price in a way.....

[Ladykillerz]

yeah.. for those who got $2 COE, i will also keep it and drive for 10 full years. LOL.

this is a good example of, getting benefits -> diam diam; making a bit of losses -> make a fuss over it. =P

[Friendstar]

When we got COE at $40k and then COE come down to $2k, we can "cash" our remaining $ and govt never complain.

So, same thing, if we got $2 COE and now COE $40k and suay suay the car gives problem, then suck thumb and move on lor. This is risk. Something out of our control and we take for granted that it will not happen.

 

 

well said..

 

ur reply explains everything.

[Spidey08]

sounds true... though having a higher COE means higher selling price in a way.....

 

Is it true? Higher COE means higher price for the car? I am referring to resale cars...

I thot the 2nd hand car prices follows the new car...if new car higher, then higher resale value irregarless of your COE..

 

Sorry - new here..

 

[Ben5266]

Is it true? Higher COE means higher price for the car? I am referring to resale cars...

I thot the 2nd hand car prices follows the new car...if new car higher, then higher resale value irregarless of your COE..

 

Sorry - new here..

Yes, it is true that the higher the COE, the higher the car price. Because, the buyer might think, if I need to let go of the car, I can still cash back the high COE.

But... if COE turn downward, lose big.

For your case, let say you paid $110k for your Wish.

OMV is $20k.

COE $50k. (not that I speculate it will go up but for easier calculation :)

3 years later, COE dive back to $20k and assuming tax rate remain and OMV for new Wish is still $20k.

BM will sells the Wish at $80k.

 

Now, your depreciation for 10 years is $110k - 50%OMV=$100k or $10k per year. (wow!)

After 3 years, you think your car value is $80k but, Brand new one is only $80k Nobody will buy from you at $80k but maybe $56k. ($8k dep over 3 years from current new car price.)

This is the time when, paper value comes in. Your paper value after 3 years will be 80%OMV+70%COE = $51k.

Your "body value" is $5k. If export, maybe can worth $9k for body.

So, your possible depreciation over 3 years is $50k.

 

Sorry for being so blunt. But this is what we "suffered" before.

[Observer]

as usual, when things not what u want, you try to find something to complain about