how to solve COE volatility? Gov doing the pricing

[jcmm]

1 hour ago, Jamesc said:

High COE is putting

back into our reserves.

High COE is good for us.

High coe will be good like increasing GST. With all these extra revenue, govt can better support the poor.  

[Mkl22]

Let me list the amount of money collected from COE over the last 10years.

Average from 2012-2021 is 3.86B/yr

2022: 3.93B (estimated)

2021: 3.22B

2020: 2.30B

2019: 2.42B

2018: 3.27B

2017: 5.98B

2016: 6.86B

2015: 5.41B

2014: 3.67B

2013: 2.76B

2012: 2.76B

 

[Freeder]

2 minutes ago, mikk123 said:

wah....2016, got so much money? 

Think all finished liao after investing heavily in Cecaland…

[DOBIEMKZ]

6 hours ago, Volvobrick said:

We will see massive under declaring of OMVs.....

All features will be stripped off then.😁
If owners want then optionally install aftermarket locally. 😅
 

[Calvin8808]

4 hours ago, Beehive3783 said:

The intention of COE has always been to be a revenue stream for the coffers. 

Whatever ideas anyone has, none will be taken up UNLESS it promises increased revenue to the coffers.

By cutting COE quota every quarter with unrelenting demand especially from taxis and PHVs, the revenue is literally begging to enter the coffers.

Short and sweet. High demand + low supply = high revenue

Is the above statement clear enough?

The intention of COE is always to control the population of the cars. If the main intention is for revenue, selling more COEs instead of controlling the number of COEs will generate more revenue. 

[Jamesc]

The best way to increase revenue

is to decrease supply.

Then people will have to pay more.

People buy cars when COE was 30k

and also buy cars at 100k

Which one gets more revenue?

[Volvobrick]

16 minutes ago, DOBIEMKZ said:

All features will be stripped off then.😁
If owners want then optionally install aftermarket locally. 😅
 

Software Paywall lor! OMV 20k, pay another 30k after buying to activate electric mirrors, climate control, electric seats, headlights.... 

Of course some drivers will save and not pay for signal lights. 

[DOBIEMKZ]

1 minute ago, Volvobrick said:

Software Paywall lor! OMV 20k, pay another 30k after buying to activate electric mirrors, climate control, electric seats, headlights.... 

Of course some drivers will save and not pay for signal lights. 

Also imported with no carpets, no seats, no rims no tyres, and no steering wheel too.😁 Because all these items selling in many after-market shops locally.😄
Create business for them.

[SLing]

Post Deleted

Edited August 2, 2022 by SLing

[Calvin8808]

15 hours ago, Jamesc said:

The best way to increase revenue

is to decrease supply.

Then people will have to pay more.

People buy cars when COE was 30k

and also buy cars at 100k

Which one gets more revenue?

Having more and cheaper COEs doesn't mean the revenue will be less. For example, selling 500 COEs at $100K a piece ($50m) compared to selling 2,000 COEs at $60K a piece ($120m). Not to forget more cars on the road, more ERPs to be collected, fuel duties etc. That's if the intention is really just to generate revenue. Also what's stopping the Govt to issue more COEs and at the same time all COEs have a reserved price of at least $80K?

 

 

[Calvin8808]

20 hours ago, Fitmugen said:

Yeah, at the end of the day, car is not a necessity in SG. If cannot afford, there are many options that are almost as convenient.

Save your proposals for the day when there is food shortage. That one I agree, cannot be bidding system and gahmen must step in, if not people will die of hunger!

Totally agree!

[Atonchia]

Bidding sure high price.

When I was a kid ever attended 7th month dinner before they can bid so much for a piece of charcoal.😅

We see Art piece auction, the bid price also goes way beyond the starting price.

But when go supermarket buy charcoal for BBQ the price is fix 🤣

Then I realised the red ribbons must have been the expensive stuff 😅.

So many people fighting to have it.

[Vratenza]

16 hours ago, Calvin8808 said:

The intention of COE is always to control the population of the cars. If the main intention is for revenue, selling more COEs instead of controlling the number of COEs will generate more revenue. 

Optics. 

Just like we all know how much our ministers are paid (at least ball park millions) 

How many do we see drive bentley/RR/porsche? How many flash AP/PP whatever P on their wrist? How many of the female ministers carry herpes in public eyes? 

In order to continue the revenue stream, the show must go on and not kill the golden goose. Whatever car population control and traffic jam solutions are just a means to and end. 

So, if they want my money to fund the govt coffers, just be upfront about it and just tax me for my income one time jialat jialat each year and leave me alone for the rest of the year. 

That is my point of view. We can agree to disagree on that. 

Edited August 3, 2022 by Vratenza

[Jamesc]

Support

45 minutes ago, Calvin8808 said:

Having more and cheaper COEs doesn't mean the revenue will be less. For example, selling 500 COEs at $100K a piece ($50m) compared to selling 2,000 COEs at $60K a piece ($120m). Not to forget more cars on the road, more ERPs to be collected, fuel duties etc. That's if the intention is really just to generate revenue. Also what's stopping the Govt to issue more COEs and at the same time all COEs have a reserved price of at least $80K?

 

 

 

[Optramagnum]

You should see the crowd in those condo new launches. Like wet market.. Units were sold in minutes. 

[Mkl22]

8 minutes ago, Optramagnum said:

You should see the crowd in those condo new launches. Like wet market.. Units were sold in minutes. 

thus in Cheng Hu's eyes, singaporeans still got money.. KPKB for what. continue to Go Squeeze Them.

Edited August 3, 2022 by Mkl22

[Ct3833]

still no answer after 6 pages. Let me add more confusion to the discussion.

To solve COE price volatility, first is to balance the COE quota distribution over the 10 years, there must be equal number of COEs every year, otherwise the price volatility will happen.  But that still does not mean COE price will not fluctuate, it will still go up and down to some extent, during the good years, COE price will increase because people have more money to spend. Likewise when a few popular brands start to launch new model at the same time, COE price will go up as well due to the competition.

We have to understand that COE quota is a 3 decades old problem, while it can be solved, it will come with a huge price. There are only 600,000 COE available in total. During the low COE quota period now,  LTA will not increase COE quota allocation, so the only option left is for LTA to pull back COE during the high COE quota period to reserve them for low COE quota years, when this happen, those people who scrap their cars when LTA is tightening COE allocation, COE price will shoot through the roof. The situation can last for a few years, can we afford that ?

One more thing, COE will not stay low when COE quota is evenly distributed, it will likely be higher instead. Take for example, Cat B was $30k during the low and $110k during the peak, assuming COE should average around 50k with a flat COE distribution, it may end up higher because there is no more bumper crop COE, COE supply will be tight all the time, resulting in price increase. And when people are used to $50k, dealer will start to bid higher and higher to compete among themselves to secure car delivery.

At the end of the day, removing COE volatility will only create a more predictable COE price trend, it will not reduce COE price overall. There are only 60k COE available per year,  it transltaes into 5,000 COE per month or about 1,250 COE per CAT per bidding exercise, there will be no cheap COE, those who could not afford would still unable to afford.

Edited August 3, 2022 by Ct3833

[Jamesc]

Gov doing the pricing?

You can control the price

or the quantity but you cannot control both!

If set price too high not all quota taken up

If you control quantity then price will go up and down.