CEVS ....

[inlinesix]

  On 1/5/2017 at 9:37 AM, Theoldjaffa said:

no.

 

the OMV is already determined, along with the taxes and incidental costs.

 

then the AD marks up from there to determine their gross margin. so it doesnt matter at all to us, the proportion of margin to where because they will already have set it right.

 

it is not the other way round where a fixed margin is set, and then they work backwards to pay the costs.

 

Since i am wrong on this topic, i shall stop discussing on it.

 

Anyway, whenever we buy car on this island, we will be carroted.

 

[Alvinnoob]

I think this bro need a real case study, after all the theory are given to him.

 

I think good benchmarks are vezel, citron C4.

[Theoldjaffa]

  On 1/5/2017 at 9:54 AM, Davidtch said:

Since i am wrong on this topic, i shall stop discussing on it.

 

Anyway, whenever we buy car on this island, we will be carroted.

Yes yes, just depends who is "carrotted" more nia hahaha

[therock]

It's a useful thing to know.. Before I read up on CEVS, I was totally unawares of the ongoings and the shenanigans of LTA. At least now, it's clearer.

But we don't simply a car because it has a high OMV, low CEVS etc. We buy the car because we think it will be fun to drive, and we want to enjoy the motoring experience.

So don't let all the figures get to you, and take that ride out on an open road, and feel the breeze and enjoy of driving ! 

[Fcw75]

There are simply too many ways for the govt to fark us. If one choose to drive here then just have to suck it up.

[Lala81]

  On 1/5/2017 at 12:09 PM, Fcw75 said:

There are simply too many ways for the govt to fark us. If one choose to drive here then just have to suck it up.

 

Don't say hor.

SG Govt is very honest and open with the way they tax us.

All black and white and on website 

[Theoldjaffa]

A tax is a fine for doing well.

 

A fine is a tax for doing wrong.

[Wt_know]

  On 1/5/2017 at 2:29 PM, Theoldjaffa said:

A tax is a fine for doing well.

 

A fine is a tax for doing wrong.

wah ... no one can put this any simpler than this

 

some say petrol tax is so complicated that one need to have Master plus PhD plus Doctorate to understand ... muahahaha

[Pocy]

  On 1/5/2017 at 12:02 PM, therock said:

It's a useful thing to know.. Before I read up on CEVS, I was totally unawares of the ongoings and the shenanigans of LTA. At least now, it's clearer.

But we don't simply a car because it has a high OMV, low CEVS etc. We buy the car because we think it will be fun to drive, and we want to enjoy the motoring experience.

So don't let all the figures get to you, and take that ride out on an open road, and feel the breeze and enjoy of driving !

Buy the car we like and enjoy it. Calculate so much got use meh .... LOL

[therock]

  On 1/6/2017 at 12:25 PM, Pocy said:

Buy the car we like and enjoy it. Calculate so much got use meh .... LOL

We are Singaporean after all..

Low cost, high COE rebate - when getting a rebate is so rare

Low FC, high power, low tax, low cevs, high resale.

No wonder we gravitate to the small models.

The stakes are too high so few are really going to yolo..

[Pocy]

  On 1/6/2017 at 12:28 PM, therock said:

We are Singaporean after all..

Low cost, high COE rebate - when getting a rebate is so rare

Low FC, high power, low tax, low cevs, high resale.

No wonder we gravitate to the small models.

The stakes are too high so few are really going to yolo..

[inlinesix]

  On 1/6/2017 at 12:28 PM, therock said:

We are Singaporean after all..

Low cost, high COE rebate - when getting a rebate is so rare

Low FC, high power, low tax, low cevs, high resale.

No wonder we gravitate to the small models.

The stakes are too high so few are really going to yolo..

 

I yolo

 

T2 also yolo.

 

Anyone joining us?

 

[Theoldjaffa]

I don't YOLO but YNWA

[Carbon82]

  On 1/5/2017 at 2:29 PM, Theoldjaffa said:

A tax is a fine for doing well.

 

A fine is a tax for doing wrong.

I will further summarise your 2 statement into just 4 letters...

 

LPPL

 

Got CEVS, saving more than often make by AD, yet gotten lower PARF value.

 

Reduce CEVS rebate / increase CEVS surcharge, immediately faced with higher purchase price.

 

We are Singapore

We are Singapore

We are Singaporean

[Friendstar]

  On 1/5/2017 at 1:15 AM, Theoldjaffa said:

gahmen will say, technically the rebate is given in FULL because the ARF paid is less.

 

when getting PARF, you are getting back what you paid, but not returning what was not paid. that's all the gahmen cares.

 

dealers, yah lah they just lower their COGS but never pass on the savings to consumers. that's the beef that we have.

I think what govt can do is to rebate back to buyers directly. Case closed.

[Shibadog]

  On 1/6/2017 at 4:17 PM, Friendstar said:

I think what govt can do is to rebate back to buyers directly. Case closed.

 

yup, in the form of road tax reduction. But higher admin effort/cost.

[Wind30]

I am looking to buy a car soon.

 

Lets say if my car has a CEVS of 5k and I drive it to 9-10 years. Assuming a 55% rebate, I would have $2750 less rebate at the end of it?

 

So technically I need to add a $2750 to the car when comparing prices assuming my intention is to change car every 9-10 years.

[Reo]

  On 1/5/2017 at 12:16 PM, Lala81 said:

Don't say hor.

SG Govt is very honest and open with the way they tax us.

All black and white and on website 

 

I disagree on just one count, they should stop calling CEVS a rebate.  Worse is they got their mouth piece ST to drum up all this while saying the government is "losing money" because of the rebate.

 

If you read below I'm quite sure if you're objective you’ll conclude it's never a rebate, period.

 

For the rest, I hope I can help you understand all this BS about CEVS rebate.

 

In order to bring up the purchase price of cars (supply, demand & price), many years back it was cooked up that buyers (of new car) should pay additional tax (ARF).  In line with keeping cars on the road on average to be in tip-top condition, the 10 years validity was also conceived.  The additional tax that was paid upfront will be refunded if the vehicle is de-registered by the end of 10 years.  As a side effect, the government also has additional money to go spend for 10 years (or invest if you prefer).

 

Then came the idea to go green.  Protecting our environment is good but the implementation is just too damned stupid.  Recall the Tesla saga, NCG and now diesel.  Anyways, with the go green thingy came CEVS.  The important point to note is while CEVS “rebate” seems like an upfront reduction, what effectively happens is the amount of reduction is actually taken from the PARF that you’ll eventually get refunded when you de-register the vehicle within 10 years.  It’s like you’re withdrawing your PARF refund at the beginning rather than later.  Assumption here is time value of money is not considered and the first buyer keeps the vehicle until it’s deregistered.

 

The above point is important to grasp.  To illustrate if the ARF is 20k (before CEVS consideration), the vehicle owner will get a refund (PARF) of 10k at the end of 10 years.  If there is a CEVS “rebate” of 5k, the ARF becomes 15k.  Where does this 5k discount come from?  Yes, your PARF will be 5k instead of 10k.  Do you still think the government is losing money because of this “rebate”?  Would you even call it a rebate?  (Go search the meaning of rebate if you insist).

 

On the flip side, if there is a CEVS surcharge of 5k, using the same example above, the ARF will be 25k but the PARF remains the same at 10k.

 

Way back, I’ve written to ST to correct them not to call this CEVS concession a rebate and not to portray the government is losing money.  Of course they did not publish.  Not surprising considering ST is a PAP-dog.

 

I can go on but I’ll stop here by saying:

1.     If you’re buying a vehicle with CEVS “rebate”, you should expect an upfront purchase price reduction accordingly (there is other components like dealer’s margin, COE, .. to complicate slightly).

2.     If you’re buying a used vehicle which was given a CEVS “rebate”, the PARF is reduced and be mindful how the asking price is priced in.

 

With so much confusion made by the government and their mouth piece, and that not many people really understand all this CEVS BS, the ones losing out are really the buyers (both new and used) who don’t understand how CEVS works.

  On 1/7/2017 at 8:52 AM, Wind30 said:

I am looking to buy a car soon.

 

Lets say if my car has a CEVS of 5k and I drive it to 9-10 years. Assuming a 55% rebate, I would have $2750 less rebate at the end of it?

 

So technically I need to add a $2750 to the car when comparing prices assuming my intention is to change car every 9-10 years.

 

Just saw your post.  I've just posted how CEVS works - check it out.