News: call to tweak COE

[SimonTan]

Very poor argument.

No wonder sales is so poor as well.

Just priced the cars with immediate Cat.E in mind, and gave $20,00 discount to those who can wait for six bids lah. Many buyers will think the $20,000 discount is for real....and will book the cars like its dirt cheap.

 

 

 

By Samuel Ee

 

As the government looks at two possible ways to ease the COE supply crunch, some motor distributors are hoping it will go further and tweak the certificate of entitlement system itself, in particular, the Open Category COE.

 

The Open Category or Category E COE is transferrable, unlike Cat A for small cars (under 1,600 cc) and Cat B COEs for big cars (above 1,600 cc).

 

But with Cat B COEs in short supply, Cat E has recently been used by motor traders to register luxury cars.

 

 

As a result, the Cat E premium currently tracks the Cat B premium, and they stand at $92,010 and $91,000, respectively.

 

On the other hand, the premium for Cat A - for small cars or those under 1,600cc - is only at $64,201 now.

 

"Dealers of luxury models have bigger profit margins, so they are able to bid more for a COE," said the sales manager of a Japanese dealership. "As sellers of cheaper bread and butter models, we can't compete with them. So we have been priced out of the Cat E COE segment."

 

For a fairer system, George Lee, general manager of Opel distributor Auto Germany and Chevrolet dealer Alpine Motor, would like the government to consider splitting the Open Category so that some Open Cat COEs can be used only to register Cat A cars while the others are reserved specifically for Cat B models.

 

"Right now, the system is unfair to Cat A models because Cat B car sellers are monopolising Cat E with their stronger purchasing power," said Mr Lee. "This defeats the purpose of having an Open Category COE that can be used to register all vehicles."

 

 

Opel and Chevrolet have models in both Cat A and Cat B but the majority of the two marques' sales - about 80 per cent - are Cat A cars.

 

"Right now, if a customer walks in and wants to register a Cat A car immediately, it will not be possible unless he is willing to pay the price of a Cat B COE," said Mr Lee. "If the Open Cat COEs can be allocated in such a way that no one class of cars can monopolise them, it will be more equitable."

 

One senior executive of a dealership, who declined to be named because of company policy, agrees. "Yes, I think it will be better to apportion some Open Cat COEs for Cat A and some for Cat B, so that everyone has a chance to secure an Open Cat COE."

 

However, he added: "I think the best way forward is still to abolish Cat A and Cat B based on engine capacity and just go with a system determined solely on exhaust emissions."

 

Neil Fiorentinos, managing director of BMW Group Asia, said that the recent hike in the COE price resulted from a combination of strong vehicle demand and short-term price pressure, due to the quota limits experienced this year.

 

"This price hike happens across all categories, even for commercial trucks and lorries, not just passenger cars. At this moment, any short-term measures, including the separation of the Open Category for Cat A, Cat B, etc, to alleviate the price pressure sentiment, will likely be welcomed by the general public."

 

BMW is a luxury carmaker and the popularity of its models made it Singapore's top make last year. But the general manager of a small mass-market dealership does not agree with the suggestion. "This is effectively saying that Cat E should be abolished. This is rubbish. With this small COE quota we have now, it will push COE prices even higher."

 

He said that Cat E now gets 25 per cent from the deregistrations of each respective category. Under the suggestion, if there are 100 Cat A COEs available for bidding, 25 pieces will be turned into a so-called Open Cat A COE, or a transferable Cat A COE.

 

The general manager asked: "Cat A, Cat B and Cat D (for motorcycles) were made non-transferrable to prevent speculation. If you allow speculation in Cat A COEs, plus reduce the supply of non-transferrable Cat A COEs, won't that raise premiums even further?"

 

[Soya]

first of all, got ppl so kan cheong buy opel meh?

[Mockngbrd]

"Right now, if a customer walks in and wants to register a Cat A car immediately, it will not be possible unless he is willing to pay the price of a Cat B COE," said Mr Lee.

 

what ?

[Galantspeedz]

if seperate Cat E to Cat A and B... then in the first place we have CAT E for fark

[Watwheels]

These sales ppl will only say things that will benefit themselves. If want to eliminate CatE, might as well distribute equally amongst the other 4 categories, why only between CatA & CatB?

[Wt_know]

CAT E is supposed to be a "float" that can increase the quota for CAT A & B

of coz when COE skyrocketed, NATURALLY CAT E will be used by CAT B buyers ... the sales manager is stooopid is it?

to split CAT E to A & B ... more A or more B ...even 50/50 is tough.

 

if seperate Cat E to Cat A and B... then in the first place we have CAT E for fark

Edited May 10, 2012 by Wt_know

[Felipe]

Cat A from 0-1.6L is irrelevant these days with smaller CC turbo cars. even F1 going 1.6 turbo in a few years.

 

prb there should be a cat for 0-1.3L and so on. point is the policy makers don't update themselves with motoring trends enough and simply put a category. this results in those really needing cars not able to get one. but then again, our policies are always out to make money rather than put people's interest first.

[Watwheels]

Cat A from 0-1.6L is irrelevant these days with smaller CC turbo cars. even F1 going 1.6 turbo in a few years.

 

prb there should be a cat for 0-1.3L and so on. point is the policy makers don't update themselves with motoring trends enough and simply put a category. this results in those really needing cars not able to get one. but then again, our policies are always out to make money rather than put people's interest first.

In this case however I do agree with their one statement that the COE system based on engine capacity is outdated, it's time to change to the emission based system.

[Felipe]

emission is it something like euro4, euro5 that sort of thing? what are the numbers?

[Shull]

In this case however I do agree with their one statement that the COE system based on engine capacity is outdated, it's time to change to the emission based system.

 

Our system is based on the old UK system.. even UK is switching to emission based already..

 

But I think in our limited space, it's more relevant to use the size of the car as a gauge..

 

A 2L MX-5 occupies alot lesser road space than a 1.6L Hyundai Trajet..

Edited May 10, 2012 by Shull

[Wt_know]

1.6L benchmark to separate cat a & b and then open cat e is not working going forward. with many 1.4L/1.6L turbo engine coming up ... bmw/merc/audi/vw will take up all cat a coe eventually. and the jap dealer manager will come in to comprain cannot sell sushi and all taken up by german sausage

 

why not 1 coe category only.

 

in term of luxury car can use other means of car tax ie: a matric formula like engine capacity (ie: >2.5L this is to tax big engine and supercar like porsche/lambo/ferrari), car omv, etc - which can "better" differentiate bread&butter car and luxury. ie: new bmw 528 being 2L only but will still kena tax higher compare to 2L camry as 528 is deem luxury from omv point of view or something. euro emmission is also another way to tax but this is more use to motivate go green instead of tax more for "expensive" car and less for "bread&butter" car.

 

coe is to control car population. 1.6L or 2.6L or 3.6L car occupy 1 parking lot and 1 car space on the road. duh !

 

but i do see a problem here ... if only 1 category ... because richie has more bullet ... coe sure hit sky and the whole month quota is used to sell luxury sedan and sport car only which is >1.6L

 

so how?

Edited May 10, 2012 by Wt_know

[Mllcg]

"if people want to register a cat A now, they must bid cat E"

 

the dealer never heard of bidding 70k for cat A?

 

even if cat A closes at 65k, dealer earn 5k.

 

trying to smoke who?

[Wt_know]

haha ... well said

his hidden message is to take cat e quota and dump into cat a so his <$60K bid got chance

 

"if people want to register a cat A now, they must bid cat E"

 

the dealer never heard of bidding 70k for cat A?

 

even if cat A closes at 65k, dealer earn 5k.

 

trying to smoke who?

Edited May 10, 2012 by Wt_know

[Felipe]

Tats y I tink 0-1L cat may work. Not many wan to buy spark n picanto. So at least tat kinda give ppl who really nid car to own one.

[Tonyhawk]

my proposal:

 

Cat A - Family vehicle. but each family unit allowed to buy one car in this category.

Cat B - Non-family. second or third car, etc etc.

 

Dont ask me how to categorise the buyer in A or B, but if they are really keen on the idea, im sure they will find a way. What I am certain is, that whatever they do, there will SURELY be critics.

[Tonyhawk]

my proposal:

 

Cat A - Family vehicle. but each family unit allowed to buy one car in this category.

Cat B - Non-family. second or third car, etc etc.

 

Dont ask me how to categorise the buyer in A or B, but if they are really keen on the idea, im sure they will find a way. What I am certain is, that whatever they do, there will SURELY be critics.

 

oh and the income from COEs, is equally distributed to family units with no car.

[Steptronic]

why not 1 coe category only.

 

coe is to control car population. 1.6L or 2.6L or 3.6L car occupy 1 parking lot and 1 car space on the road. duh !

 

but i do see a problem here ... if only 1 category ... because richie has more bullet ... coe sure hit sky and the whole month quota is used to sell luxury sedan and sport car only which is >1.6L

 

so how?

If it is just one category, Luxury cars would eat away the total pie. B&B cars would disappear totally

[Dualie]

oh and the income from COEs, is equally distributed to family units with no car.

 

What Logic?