Number of new off-peak cars dives as COEs rise

[Darthrevan]

 

The interest in new off-peak cars has practically disappeared as a result of sky-high Certificate of Entitlement (COE) premiums in recent months, with industry analysts predicting that recently-implemented car loan curbs may further dampen demand.

 

Only eight new red-plated cars were registered last month, as compared to 96 registered in the same period two years ago.

 

Figures from the Land Transport Authority (LTA) also showed that the number of normal cars converted to off-peak cars under the revised scheme fell to 761 in the past financial year, compared to the 1,361 cars that were converted between April 2010 and March 2011.

 

Between April 2011 and March 2012, 857 normal car owners switched their rides to red plates.

 

The proportion of red-plated cars has also shrunk in recent years. They now constitute about 7.3 per cent of cars here, as compared to a peak of 8.4 per cent in 2010. Then, there were 50,040 off-peak cars, as their numbers rose steadily between 2003 and 2010.

 

The off-peak car scheme was introduced in 1994 to allow more people to own cars but not contribute to peak-hour congestion. Buyers paid lower taxes for such cars, but they could be driven only during evenings, weekends and public holidays.

 

The scheme was revised in 2010 to make it more attractive for people to switch to these red-plated cars, with cash rebates given earlier and the vehicles allowed to be driven during all hours on Saturday and the eve of five public holidays.

 

The LTA had previously envisioned that the enhanced off-peak car scheme could eventually lead to about 10 to 15 per cent of red-plated cars here, which it believed could reduce peak-hour traffic volume.

 

Motor traders TODAY spoke to said that demand for off-peak cars usually wanes when car prices are high, as the S$17,000 tax savings would constitute a smaller percentage of the total car price.

 

Said Singapore Vehicle Traders Association President Neo Tiam Ting: "The rebate is the same no matter what the car prices are. So, for example, a few years back in 2009, when car prices were about S$50,000, the rebates will take up a higher percentage as compared to now, when car prices are about S$100,000."

 

Mr Ron Lim, General Manager of Nissan agent Tan Chong Motor, felt that the recently-enforced curbs on car loans will be a "further deterrent" for budget buyers who previously turned to off-peak cars.

 

During the Ministry of Transport's Committee of Supply debate last month, Member of Parliament Lim Biow Chuan had suggested doing more to promote red-plated cars as an option for consumers who wished to fulfil their aspirations but may not need to drive every day.

 

Contacted yesterday, Mr Lim suggested the authorities could consider giving a bigger tax rebate so that potential car owners can see the benefits of owning an off-peak car.

 

SIM University's Head of Urban Transport Management programme Park Byung Joon suggested that the weekday timing restrictions on off-peak cars could be tweaked to make the scheme more attractive. Pointing out that that roads get congested mostly during the two peak hour time belts of 7am to 10am and 5pm and 8pm, Dr Park suggested that red-plate drivers could be allowed to drive any time outside of these 6-hour timeslots.

 

Responding to TODAY's queries, the LTA said that "there are no plans to change the benefit structure (of the scheme) at this point of time".

 

"The OPC (Off-Peak Car) scheme is an ownership scheme which allows motorists to own cars at lower cost, if they are prepared to use it sparingly," the LTA spokesperson added.

 

"The tax benefits and usage conditions of the OPC are set upfront so that car buyers and owners can assess, based on their own travel patterns, whether or not an OPC would be able to meet their needs."

 

Source: http://www.todayonline.com/singapore/numbe...dives-coes-rise

[Wt_know]

COE $70K+ and OPC only get $17K rebate .... not worth to get OPC

 

in the good old days, if coe is $35K, $17K rebate is > 50% ...

Edited April 19, 2013 by Wt_know

[Redplanet]

Hardly surprising... But they are still around. See quite often.

[Nullifi3d]

Yay we OPCs will be an exotic breed soon. :)

[Deckbuild]

To buy an opc car means seldom use, if seldom use might as well go for an 8 year old car, can drive full day and whole lot cheaper. Unless the rebate is based on percentage at current situation, 17k is not worth when coe is high.

[Jwee85]

I guess many OPC bought with cheap COE would also likely converted back to normal car in the past years. Because COE getting expensive since 2011 onwards, it would be 'worth' for some to convert to normal cars. Thus quicken the pace of lesser OPC on the road?

Edited April 20, 2013 by Jwee85

[Spica]

some people might think 17k is nothing, but i believe many of them 17k is about 10-12 months of their salary.

do not forget the insurance and road tax are different too for opc.

[Tankk1173]

some people might think 17k is nothing, but i believe many of them 17k is about 10-12 months of their salary.

do not forget the insurance and road tax are different too for opc.

 

If you go to the OPC used car section to do a check, you still can find some OPC car was previous owner family 2ND car.... seldom used....

Edited April 20, 2013 by Tankk1173

[Deckbuild]

some people might think 17k is nothing, but i believe many of them 17k is about 10-12 months of their salary.

do not forget the insurance and road tax are different too for opc.

 

Most opc are small cc cars, the insurance and road tax are not that big of an impact.

[SGCarPrices]

COE so expensive how to afford off peak car? might as well opt for new cars

 

Ok

[Zxcvb]

I see more and more OPC cars this year. A lot are SM plates.

[Dafansu]

I see more and more OPC cars this year. A lot are SM plates.

 

Car pricing has dropped to a more reasonable amount, after OPC rebate can get a car for about $40k-$60k, quite reasonable monthly payment. 

[DACH]

Before selling, can convert back to normal plate?

[ER-3682]

Before selling, can convert back to normal plate?

Can,if the next Owner want to use a Normal plate,must top up Money,for example,if Car is 5 years old,the next owner is to pay LTA $8,500.

Anyway,my OPC 370z now got a much lower PARF than a normal 370z,mine only left $18,000   ,while the Normal ones got $25,000.

[13177]

Can,if the next Owner want to use a Normal plate,must top up Money,for example,if Car is 5 years old,the next owner is to pay LTA $8,500.

Anyway,my OPC 370z now got a much lower PARF than a normal 370z,mine only left $18,000   ,while the Normal ones got $25,000.

The amount need to pay to covert to normal plate depends on what factor ah?

[Ct3833]

I see more and more OPC cars this year. A lot are SM plates.

the increase  in% is nearly 50% to 100% more  per month depending on which month. but the net increase in quantity is about 100 units more OPC per month only.

 

https://www.lta.gov.sg/content/dam/ltaweb/corp/PublicationsResearch/files/FactsandFigures/M061-OPC_Stat.pdf

[13177]

the increase  in% is nearly 50% to 100% more  per month depending on which month. but the net increase in quantity is about 100 units more OPC per month only.

 

https://www.lta.gov.sg/content/dam/ltaweb/corp/PublicationsResearch/files/FactsandFigures/M061-OPC_Stat.pdf

OPC is worth to buy if you drive the car for 10 years. If you convert the car few years down the road, sell off the car or drive many times during restricted hours, then not say worth the $17k off.

Edited September 16, 2018 by 13177

[Zxcvb]

the increase  in% is nearly 50% to 100% more  per month depending on which month. but the net increase in quantity is about 100 units more OPC per month only.

 

https://www.lta.gov.sg/content/dam/ltaweb/corp/PublicationsResearch/files/FactsandFigures/M061-OPC_Stat.pdf

 

According to the stats, the total number of OPCs running is halved compared to 2 years ago - 30000 to 15000 currently. Many more will be scrapped come 10 years or convert to normal plate if they renew their COE. Then this year, registration of OPCs has increased like you stated. But nowhere near the rate than 10 or 9 years ago when COE premium was around $15000.

 

Less OPCs means more cars on the roads which otherwise should be parked during weekdays 7am-7pm.