What if we can recycle COE for a new car?

[KARTer]

WHat if LTA allows us to recycle our COE for our next new car?

 

If i want to replace my 4yr old sunny with a new Cruze (just as an example), i will just use / transfer the sunny's COE (with remaining 6yr value) to the Cruze.

 

The used car dealer will likely to pay me 'scrap/export' value for my old sunny (without COE). If he cant find a buyer in the export market, he'll be stuck with a 4yr old sunny (no COE) as few local buyers will be keen to buy a new COE (not costing $60-70k!!) for the old car. Unless, the buyer is doing the same as me: transfer his current COE to the sunny (asumming he's a car owner already).

 

In terms of car population control, this rule (of allowing recycled-COEs for new/used cars) still serve the purpose.

 

Do you guys think this is a workable idea? (just for discussion, LTA is certain not to be interested coz it doesnt generate revenue for them)

 

 

[Liuz0004]

everyone will be changing car every now and then. 2nd hand cars will have no value.

[Nodtviedt]

Then people will start selling their COE (without car) for profit instead?

[Old-driver]

This won't fly, as your COE does not go into the new quota and there will be no COEs up for bidding. So all those who have a car now are happy but aspiring car owners how?

[Renegade777]

Don't think it is feasible. It may look and sounds great but ought to look from another angle. Buy a new car and it is entitled 10 years lease of life which is already very short. Little people will pay for a new car and given only 6 years lease of life for the car. It is like throwing money into the water. Might as well sell the car or save-up for new project.

Edited October 26, 2011 by Renegade777

[Wt_know]

you got the answer there .....

 

a. coe is tied to the car and not the owner. if coe is tied to owner, owner can change car 3 times within 10 years period (every 3 years after warranty expired) and no bidding is required. this is definitely not in you-know-who interest ehh. they will say you must pay what all other people pay now for coe of a new car and not still paying (using) the coe that you paid many years ago for a new car (old coe for new car). it's called market value ... coe also got market value hor. it's the term that you-know-who like to use.

 

b. you-know-who wants to control (i should say manage?) demand/supply equation. if coe is allowed to be rolled over, it's hard to control because you need the "deregistration" quantity to determine "new" registration quantity and move the goal post.

 

WHat if LTA allows us to recycle our COE for our next new car?

 

If i want to replace my 4yr old sunny with a new Cruze (just as an example), i will just use / transfer the sunny's COE (with remaining 6yr value) to the Cruze.

 

The used car dealer will likely to pay me 'scrap/export' value for my old sunny (without COE). If he cant find a buyer in the export market, he'll be stuck with a 4yr old sunny (no COE) as few local buyers will be keen to buy a new COE (not costing $60-70k!!) for the old car. Unless, the buyer is doing the same as me: transfer his current COE to the sunny (asumming he's a car owner already).

 

In terms of car population control, this rule (of allowing recycled-COEs for new/used cars) still serve the purpose.

 

Do you guys think this is a workable idea? (just for discussion, LTA is certain not to be interested coz it doesnt generate revenue for them)

Edited October 26, 2011 by Wt_know

[Blackyv]

They won't allow that simply because they don't encourage old car on the road ... sg has the youngest Ave car age ...

[Wt_know]

not old car la ... reuse old coe on new car. ie: rollover the balance of 7/6 years coe assuming the car is 3/4 years old to buy a new car and no need to bid new coe. aka. transfer of coe from current car to new car - same owner. i would say if this allow, i think sg road got even more new car

 

They won't allow that simply because they don't encourage old car on the road ... sg has the youngest Ave car age ...

Edited October 26, 2011 by Wt_know

[KARTer]

everyone will be changing car every now and then. 2nd hand cars will have no value.

but when i change car, i can recycle my COE to get an used car (no COE coz the previous owner also recycles his) ..... so the value of used cars (which have no COE still can find buyers who recycle their own COE) will only drop proportionate to the 'loss' of its original COE (now kept/recycled by their previous owners).

 

In a sense, the COE cert is attached to, or follow, the owner, not the car.

Edited October 26, 2011 by KARTer

[KARTer]

Then people will start selling their COE (without car) for profit instead?

I will only sell my COE if i dont want to own a car any more. Or sell my car together with its COE. If what you said does happen, no harm also, let some folks earn some extra..... BTW, current LTA rules prevent speculation of new COEs.

[KARTer]

This won't fly, as your COE does not go into the new quota and there will be no COEs up for bidding. So all those who have a car now are happy but aspiring car owners how?

Let's test this out with this example:

 

If 50,000 owners sell their cars and buy new cars this year, they will use up 50,000 COE quota. Thes 50,000 COEs will largely stay on the roads till 2021 even between now and 2021 these 50,000 cars/COEs change hand.

 

Lets assume, give and take, by the 5th years 5% (ie 2,500 cars/COEs of the 50,000) will be either scrapped or exported resulting in 2,500 COEs to be 'added' to the new COE quota in 2016.

 

In 10 years' time (2021), all the 50,000 COEs will expired (some of these COEs would have been recycled between now and 2021, but its 10yr life span will still expire) resulting in 50,000 new COEs to be added to the quota for 2021.

 

So how is it that "there will be no COEs up for bidding"?? This is the part i am not too sure and my statement above is based on my vague understanding of the COE system.

[KARTer]

This won't fly, as your COE does not go into the new quota and there will be no COEs up for bidding. So all those who have a car now are happy but aspiring car owners how?

 

As per my earlier post, when the 10yr life span of these recycled COEs are due, they will go into the new quota for first timers to bid. Similar to the current system?

 

[KARTer]

Don't think it is feasible. It may look and sounds great but ought to look from another angle. Buy a new car and it is entitled 10 years lease of life which is already very short. Little people will pay for a new car and given only 6 years lease of life for the car. It is like throwing money into the water. Might as well sell the car or save-up for new project.

I will gladly recycle my $3k COE now if/when i buy a new car. Of course it also depends on how many years are left in my COE at the point i change car. If the 3k COE has only 1 year left, I will choose to bid for a new COE which gives me 10yr of use.

 

As long as the owner has the choice to recycle or bid for new COE, the idea may work. But knowing LTA is treating the current COE scheme as their cash-cow, no amount of logic will make them change it to suit car owners even though it may not result in more cars on the roads. This is key.

[KARTer]

LTA's claim that COE scheme is meant solely for control of car population is just a heep of crap and BS.

 

The idea suggested here actually does control the car population as each COE (regardless if it's recyled 1 or 10 times within its 10yr life span) still allows only one car on the road, no difference from the current 'BS' sysem.

 

Agree with you that the current system gives LTA the chance to 'play' the market (although doing so 'behind the scene' with taxi companies and the likes) to make huge bucks when COE prices shoot up. The flood gate (ie supply of COEs) is controlled / manipulated hence the flutuation of the prices.

 

you got the answer there .....

 

a. coe is tied to the car and not the owner. if coe is tied to owner, owner can change car 3 times within 10 years period (every 3 years after warranty expired) and no bidding is required. this is definitely not in you-know-who interest ehh. they will say you must pay what all other people pay now for coe of a new car and not still paying (using) the coe that you paid many years ago for a new car (old coe for new car). it's called market value ... coe also got market value hor. it's the term that you-know-who like to use.

 

b. you-know-who wants to control (i should say manage?) demand/supply equation. if coe is allowed to be rolled over, it's hard to control because you need the "deregistration" quantity to determine "new" registration quantity and move the goal post.

 

[Seaweed]

can work...but complicated...we don't like complicated idea if money can solve the issue....done... [laugh]

[Gendut]

WHat if LTA allows us to recycle our COE for our next new car?

 

If i want to replace my 4yr old sunny with a new Cruze (just as an example), i will just use / transfer the sunny's COE (with remaining 6yr value) to the Cruze.

 

The used car dealer will likely to pay me 'scrap/export' value for my old sunny (without COE). If he cant find a buyer in the export market, he'll be stuck with a 4yr old sunny (no COE) as few local buyers will be keen to buy a new COE (not costing $60-70k!!) for the old car. Unless, the buyer is doing the same as me: transfer his current COE to the sunny (asumming he's a car owner already).

 

In terms of car population control, this rule (of allowing recycled-COEs for new/used cars) still serve the purpose.

 

Do you guys think this is a workable idea? (just for discussion, LTA is certain not to be interested coz it doesnt generate revenue for them)

 

Anytime you profit but the govt doesn't, you can forget the idea.

 

This govt is money faced.doesn't matter if it is feasible.

[KARTer]

can work...but complicated...we don't like complicated idea if money can solve the issue....done... [laugh]

LOL.... ok, ok...

[KARTer]

Anytime you profit but the govt doesn't, you can forget the idea.

 

This govt is money faced.doesn't matter if it is feasible.

Although not exactly the same as 1% robbing the 99%, but the ideas are similar ??