No separate COE category/Gahmen reviewing COE

[Mockngbrd]

Got opposition got hope.

Thank you WP.

this sort of "review", will sure still fark up middle class one. just wait n see.

[Myxilplix]

See how it goes lah. They are feeling the political heat even though they are outwardly acting like nothing is wrong.

 

I just hope they hold the proper consultations and don't just see COEs as a revenue generating exercise first and vehicle population control second.

[Mockngbrd]

scarli zoon zoon COE review come into effect 2015+ when lots of COEs go back into the system

 

[Mustank]

scarli zoon zoon COE review come into effect 2015+ when lots of COEs go back into the system

 

Their simi trick is to push more Coe but price ERP $50 lor

[Beehive3783]

See how it goes lah. They are feeling the political heat even though they are outwardly acting like nothing is wrong.

 

I just hope they hold the proper consultations and don't just see COEs as a revenue generating exercise first and vehicle population control second.

To them, money comes first, citizens come last.

[Ngck]

scarli zoon zoon COE review come into effect 2015+ when lots of COEs go back into the system

 

 

can dun give them ideas to look good or not??? haha... i think they haven start thinking yet.

[Kweechang]

I think this is a good way if the gov wan more babies.

 

Just say 2 kids = 20% off coe, 3 kids 30%, 4 kids 40%, etc

 

For sure birth rate goes up.

So FREE COE, for family with > 10 kids.

 

[Littleknown]

Mrs Teo also said that the Government is looking into ways to help hawkers and others who depend on light goods vehicles to run their businesses, as COE prices for these vehicles have gone up.

 

 

For businesses lah, means general pool will be lesser..

 

yes, nothing good.

[Alheych]

Actually cat according to OMV is totally wrong. You will be discriminating against small but well-equipped cars. Importers will be happy to bring in sub-standard cars, but priced it at premium.

 

Should change it according to vehicle physical size (length).

 

actually, there was an ST article which recommended such a system last year, and i agree with it. tying COE to engine capacity is really archaic.

 

COE system should really stop helping Volvo S80 T4, C180 1.6, and BMW 316i.

 

Tie COE to cost of car, not engine size

By Julian Wright, The Straits Times, 5 May 2012

 

IT WAS recently reported in The Straits Times that upmarket marques now make up 45 per cent of sales in the up-to-1,600cc category, up from just 0.3 per cent in 2007. Buyers and sellers of bigger and more luxurious cars are also outbidding the others for certificates of entitlement (COEs) in the Open category, which can be used for any vehicle type but end up almost exclusively being used for bigger cars. The result is that some low-end makes that appeal to budget-conscious buyers are struggling or leaving the market.

 

The high prices of cars due to the bidding up of COEs has led some to suggest balloting as the solution, as Mr Chan Tau Chou did in a letter to The Straits Times Forum page last month. But balloting leads to problems. It would create a black market in which cars would still trade at roughly the same price as today, reflecting that the underlying supply and demand would not have changed, a point also made by other writers to the Forum Page such as Mr Goh Juanq Long and Mr Patrick Low.

 

The main effect of balloting would be to shift the revenue currently generated for the Government to those lucky enough to win the ballot (as they could resell their COEs to the highest bidder).

 

If COEs were instead tagged to the person rather than the car to make them non-transferable so as to avoid this problem, as has been suggested by Mr Martin Lee in the Forum Page, then balloting would mean those who really need a car (possibly for their livelihood) may simply miss out, while the winners of the ballot may obtain a car regardless of their particular needs or their willingness to pay. This is not only unfair, but also economically inefficient.

 

I think quite a different solution is called for. The one I propose seeks to address the problem that prices of COEs that apply to basic car models are being driven up by the high demand for luxury cars. Until recently, this concern had been dealt with by creating two different categories of COEs: Category A (cars with engine size not exceeding 1,600cc) and Category B (cars with engine sizes above 1,600cc). The theory was that the rich would want big cars and so would bid up the price of Category B COEs, while leaving the price of Category A COEs largely unaffected. The problem with this approach was that oil prices tripled from 2004 to 2008, causing luxury carmakers to produce more luxury cars with smaller engine sizes. This resulted in more and more marquee brands selling cars in the small-car category.

 

My proposal would allow the authorities to do away with categories A and B (and the Open category), so engine size need no longer be the deciding factor in the COE paid. Rather, the COE price would be tied to the underlying cost of a car; that is, the open market value (or OMV) as assessed by Singapore Customs. This is the cost to the importer (before taxes) of bringing a car into Singapore. This is how goods and services tax (GST), custom duty and the additional registration fee are currently computed for cars in Singapore. The COE would therefore no longer be a dollar amount but a percentage amount. The more expensive the car, the higher the COE premium.

 

Each bidder (individual or car dealer) in a COE auction would bid a percentage amount for a COE. Someone might bid 142 per cent of OMV, someone else 228 per cent. Bids would increase in increments of basis points instead of dollars during the bidding process. The highest percentage bids win.

 

The prevailing quota premium would be the percentage amount at which the number of bids for higher percentage amounts equals the quota of COEs available. All those bidding percentage amounts above the prevailing quota premium would receive a COE and they (or their dealer) would pay the prevailing quota premium, as that percentage on top of the OMV for the particular vehicle they choose.

 

 

To see the possible implications of such a scheme, consider six different cars, the first three belonging to the small-car category and the remaining three belonging to the large-car category (see table). The OMVs are taken from the One Motoring website for cars registered in March 2012. The COEs are taken from the latest bidding round - April 2012, second bidding. Consider how things would change if bidding was based on a percentage of OMV instead. For the sake of argument, suppose the prevailing quota premium that resulted from the bidding was 200 per cent. The implied COEs under a percentage COE scheme are given in the table, along with the predicted change to car prices.

 

Of course the example is only meant to be illustrative. Regardless of the exact numbers, the point is that consumers who choose to buy luxury cars will need to pay more for a COE and those buying cheaper models will pay less. Government revenues (which depend on the average COE prices across all cars sold) may not change all that much, even though the median car price should fall.

 

The writer is a professor in the Department of Economics, National University of Singapore.

Edited February 5, 2013 by Alheych

[Mllcg]

in time for budget 2013?

[Ahtong]

Mrs Teo also said that the Government is looking into ways to help hawkers and others who depend on light goods vehicles to run their businesses, as COE prices for these vehicles have gone up.

 

 

For businesses lah, means general pool will be lesser..

 

yes, nothing good.

 

The best way to help people who need light goods vehicles is to keep their COE epic high. This way they have a spur-in-the-hide incentive to work doubly hard

[Wson]

http://www.straitstimes.com/breaking-news/...buyers-20130205

 

The Government will not create a different Certificate of Entitlement (COE) category for first-time car buyers, said Minister of State for Transport Josephine Teo in Parliament Tuesday.

 

Responding to Dr Intan Azura Mokhtar (Ang Mo Kio GRC) who made that suggestion, Mrs Teo said the main difficulty was that it is hard to say why a second-time buyer is always less deserving than a first-time buyer.

 

She cited an example of a growing household which has had more children and are planning to buy a bigger or second car. A COE system which favours first-time buyers would not be fair to this family, she said.

 

She added: "Our current Vehicle Quota System (VQS) is not a perfect system but still the most appropriate way to allocate a limited and non-basic resource."

[Duckduck]

probably annoucned changes during FY13 budget lor. Tharman last yr say 70% LTV make no diff, maybe decrease to 50% lor.

[Brendon1980]

The fact is rising COE is going to affect many industries and in the long run, the effect will come back and haunt the garment.

As COE quota reduces, the market share of car distributors get smaller and smaller, popular ones may still survive but many car distributors may not be able to survive thru this ordeal with drop in sales and reducing prices to attract more buyers, end up many will start to pull out or revert to parrallel import model of operation.

 

The impact I am sure one can surely imagine.

[Mockngbrd]

wait they peg coe to your pay cheque...

[Benarsenal]

I have a feeling Govt might actually prefer to have more 'premium' cars than B&B cars for some reason (image? I dunno). So whatever they do, they will never penalise atas brands and luxury cars.

 

I mean, if you have Ferraris and Lambos running around the city (even just driving slowly), quite good imagery to the outside world no?

Edited February 5, 2013 by Benarsenal

[Opel17]

So FREE COE, for family with > 10 kids.

 

This is a very good one.

Top up with free road tax, free parkings at all HDB carparks, all for 10 years.

[LoverofCar]

GG means what ?

 

gao gan? (fark by dog)?