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COE classification by OMV ?

By SYF77 on 25 Nov 2012

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In recent years, the downsizing of engines by premium brands has led to luxury cars competing for a slice of the Cat A COE, which is of 1600CC capacity and below. For instance, a 1.6-litre Volvo S80 is something unthinkable 10 years ago but it is available today.

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Before that, Cat A COE used to be dominated by work horses such as the Toyota Corolla and Honda Civic. With the tightening of COE supply, prices are sure to head north.

As premium brands would normally command higher profit margin, it is expected of them to out-bid a Korean or Japanese brand in securing a COE. But is there a fairer way to allocate the limited resources?

Perhaps, COE could be categorized by the car's Open Market Value (OMV) instead of capacity. OMV is assessed by the Singapore Customs, based on the price actually paid or payable for the goods when sold for export to the country of importation. This price includes purchase price, freight, insurance and all other charges incidental to the sale and delivery of the car to Singapore.

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To ensure that a middle income Singaporean is not out-priced in the COE hunt, Cat A COE could be classified as cars of OMV below S$20,000. Cars with OMV of between S$20,001 to S$35,000 could be classified under Cat B. In this scenario, a Corolla buyer would not be going after the same piece of COE as a wealthy Volvo S60 T4 buyer.

Rather, this would put the 1.6-litre S60 and the 2.0-litre Camry in the same category, which I believe should make more sense. Cat E COE could be classified as cars with OMV of S$35,001 and above.

Car sales dominated by luxury brands are unheard of in other countries. It is time to put things back to normal.

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SYF77
Written by SYF77
I have been a car fanatic since 1989, when my father was changing our family car then to a Toyota Corolla 1.6 GL fitted with a Twin Cam 16 valve engine that was carburetor-fed, a big deal back in those days. The automobile technology and industry fascinates me and I hope to broadcast these interesting developments to everyone out there through this blog.



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Bavarian Nov 25 2012 09:11 PM
Sounds like a good idea. Need to work out some problems like fluctuating exchange rates. Also, a borderline model can be 2 different category due to OMV difference.
Watwheels Nov 25 2012 09:14 PM
LOL...why not categorized the COE to Lower, Middle & High income group? Set a quota for each group. Outcome will be of no significant change from now. Why? Coz it's not the car buyer doing the bidding.
Ishiwgao Nov 25 2012 11:06 PM
If this is implemented, it should be the same for road tax too. 1.4 turbo with more power paying less than a 2L na.
Fastfive1 Nov 25 2012 11:36 PM
Are you desperate to get a new car? Hence all your posts about changing the COE system?
Once look at the title and I knew it was you. Such a suggestion is pointless. A fairer system? Are you saying that a car is a necessity? It clearly isn't and if one cannot afford it, there are plenty of other alternatives like getting a used car. Must everyone get a new car? I don't think so. If one cannot afford it, settle for a cheaper alternative or don't buy one at all. It's not that cars are expensive, it's that one simply cannot afford it. How on earth do such pointless articles get posted? Perhaps discretion should be considered before allowing such ludicrous articles to be posted.
Gnixer Nov 25 2012 11:47 PM
ballot the most fairest system, regardless who you are, you get an equal chance.
Kspchew Nov 26 2012 08:18 AM
Oh no, not this crap again. discuss till cow come home already and yet still write a blog. Please lah, there are always 2nd hand cars around.
Cscbb Nov 26 2012 09:26 AM
Good idea. Family with kids should have a fairer shot at basic private transport without the interference of the rich badge whores.
This is simplest idea to implement. Those who suggest ballot or by income group are not thinking deep enough.
Cscbb Nov 26 2012 09:30 AM
Keep hammering away at your MP until LTA start thinking about this. Too many closed-minded folks here who are dismissive of solutions which tackle the root of price distortions.
You folks say turn to used cars, but used cars set their prices according to new cars in Singapore. The used car dealers try to con uninformed buyers too often.
Ooosh Nov 26 2012 11:12 AM
It does not make sense. The car OMV varies with the transmission, facelift, features but this month they can belong to COE CAT A OMV below 20k while next month they can jump to COE CAT B, OMV higher than 20k? Then in this case no body would want buy the model right? Might as well boycott the particular model and buy the one with higher OMV.

If want to tag COE it should be tag to something that is "unchangeable". Something like Engine BHP, CC or Emission.
Ooosh Nov 26 2012 11:17 AM
An example of the different OMV for same model
$33,574 - Oct 2008 RX8 Auto 6 speed
$26,372 - Apr 2008 RX8 Auto 6 speed.

Difference is around 8k and this can "disrupt" the OMV tagging
987 Nov 26 2012 12:20 PM
i'd suggest that coe to be bid in the figure of percentage of the final sale price with the dealer. so, if the final bidding ends at 20% (for example), then one would have to pay the garmen 20% of the final sale price of the purchased vehicle. dealers has got to be transparent of the sales figure and submit pricing to LTA prior to bidding.
Mustank Nov 26 2012 02:32 PM
decentralise the city centre to the heartlands will minimise the need to travel. so less people will need cars
PorkChong Nov 26 2012 02:40 PM
Car sales dominated by luxury brands are unheard of in other countries--> COE is also unheard of in anywhere in this WORLD.
Fastfive1 Nov 26 2012 06:56 PM
Well there's a reason why you should do your homework before committing to a sale.
If one is stupid enough to get conned just like those tourists who go to lucky plaza and sim lim, then too bad. People who are desperate to get new cars and blame the current system are merely wannabes who want to afford things that the richer people in society can afford. If you can't afford it, you really can't, so stop whining and work harder or get a higher paying job. Simple as that. Unfortunately, there are lots of these unrealistic people just like the person who wrote this uninformed article.
Shimada Nov 26 2012 08:50 PM
One suggestion is to ban dealers from bidding. All to bid for themselves only. You bid COE your name. Pay cash.
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Wormvirus Nov 27 2012 12:20 AM
fair means dont say 1 thing & do another, u say everyone can own a car in 2008 then in 2010 u turn the frying fish over say must restrict car count
Patricktkk Nov 27 2012 11:17 AM
Make all COE bid to be paid in CASH.
Solve all problems.
Jiex Nov 28 2012 01:02 AM
Another bad idea from this blogger. Car is a luxury item not a necessity.
If u can't afford to buy one, there's plenty of other options around.
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