It was a long time coming, but after 22-years since the introduction of COE vehicle quota system, Transport Minister Lui Tuck Yew has hinted the system might undergo a review amidst sharply rising COE prices.
According to The Straits Times, one possible area industry players are hoping for change is the way cars are classified. Currently cars are classified under three categories:
Category A is for cars up to 1,600cc, Category B for cars above 1,600cc and an open category.
Mr Lui commented the Transport Ministry together with LTA are studying the several feedback provided by the public regarding the issue. Under numerous occasions the public have commented that car classification should be altered to be based on emissions levels or power output - even through sgCarMart’s Facebook page or forum. Some have even called for the COE to tie to the OMV rate of a car instead of engine capacity.
While luxury vehicles mostly made up the Category B COE premiums years ago, this isn’t the case now. Driven by global calls for more emissions friendly vehicles and a shift in buyers spending habit for more sustainable cars, has allowed luxury players like Mercedes-Benz and BMW to introduce cars with smaller engine capacity but higher power output - that allows them for a COE premium under Category A.
Other suggestions include COE bidding to be done by buyers instead of dealers and to re-introduce a 70 percent car financing cap that was lifted back in 2003. The comments were made yesterday when Mr Lui visited SMRT’s Bishan Depot, where he was quizzed on the record breaking COE prices after last Wednesday’s COE exercise.
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