Expert Advice Required: COE Related

[Jasonhdc]

May I know the difference between a car under Cat B $46,000 COE and a car under Open Cat $35,000.

What's the difference? Is it the amount of COE you get when you scrap your vehicle? Anymore?

Please advice.

[Chrispie]

at A COEs are for cars below 1600cc.

Cat B COEs are for cars above 1600cc.

These COEs are non-transferable, meaning, you bid them under your name and thus cannot be sold.

 

Open Cat COEs may be used for any class of vehicle.

They are transferable, meaning they can be bought, sold and transferred freely. So if you are really desperate to get your car quickly, you can always buy an open cat COE to register your new car.

 

Open cat COEs are usually more expensive than cat A or cat B COEs.

 

(source : http://movies.sgforums.com/forums/2/topics/179830)

 

Yes, you are right. When you get to scrap your car, you get the rebate of what is the remaining value of your COE (pro rated). But if you paid more for the COE in the first place, it cost you more each year as well.

 

e.g: I piad 2 dollars for my COE. I lose 20 cents per year on the COE value.

you paid 49k for you COE. So you lost 4.9k a year on your COE value.

 

plus loan taken on COE, the interests etc means it actually cost you more.

Edited April 11, 2010 by Chrispie

[Leepee]

The gov will peg the COE price of your car to the lower of the value.

So you use CatE COE to register CatA car. Of course the lower of the two will be the value of your car value.

 

If you are the boss, will sell a $35k COE to someone and give him a final value of $45k when he register it on a small car?

You willing to lose $10k out of pocket?

Just use your brain.

[Duke]

Bro,

 

Did u read it correctly? Open CAT should be the same as CAT E, which is at $49K.

[Chrispie]

u sure on that?

 

i remembered when i bot my KIA years ago, i was given open Cat COE. And even though my car is under CAT A, the value of my COE is still Open Cat price.

 

I think Open Cat is like a wild card COE where it can be used for any car. But you may have to pay a premium as it is usually bid higher than the rest.

 

If say now i want to buy a 1.6L car.. so Cat A is at 35k. But dealer offered me the open Cat which is at 49k IF im willing to top up. So 2 person buying same car, may pay different prices because of the COE. I may be willing to top up 14k (urgent need for car) and my car will still be registered but under COE CAT, it is stated as OPEN CAT. So in that sense, my car has higher paper value compared to the the other same model but got it under CAT A.

Edited April 11, 2010 by Chrispie

[Alfc]

I think you may be incorrect. Yes you are paying more for your COE for the CAT E one but your paper value is base on either CAT A/B or CAT E price for that month of registration whichever is lower.

So you are not better off in event when you scrap.

[Iisterry]

May I know the difference between a car under Cat B $46,000 COE and a car under Open Cat $35,000.

What's the difference? Is it the amount of COE you get when you scrap your vehicle? Anymore?

Please advice.

 

1) Cat E (Open Cat) COE can be used to register any vehicle. Currently, Cat E is at $49,000, A at $34,001 and B at $45,501.

 

If I were to use a current Cat E COE to register a Cat B vehicle, the paper will show that it is a Cat E COE at $49,000 but the value used for calculating paper rebate will be $45,501.

 

Similarly if I used it to register a Cat A vehicle, the actual value used for calculation would be $34,001. The value used for calculation is either that of the original Cat E or the corresponding category that it is used to register for, whichever is lower. Cat E is commonly higher than Cat A, B or C.

 

2) Cat E COE is valid for 3 months (6 bids). This is why you commonly see 6 bid non-guaranteed packages. The Cat E COE serves as a hedging instrument against price volatility.

Edited April 11, 2010 by Iisterry

[Danielgsx]

May I know the difference between a car under Cat B $46,000 COE and a car under Open Cat $35,000.

What's the difference? Is it the amount of COE you get when you scrap your vehicle? Anymore?

Please advice.

 

Ask LTA.

[Sony]

May I know the difference between a car under Cat B $46,000 COE and a car under Open Cat $35,000.

What's the difference? Is it the amount of COE you get when you scrap your vehicle? Anymore?

Please advice.

 

 

strange, people can write so many but not answer your question.

 

 

 

when you use Cat B coe that is at $46000, your yearly depreciation of COE is 4.6k pa, so if you scrap at 5th yr, you get 23k back

 

when you use Open Cat COE, you will need to know what is the Cat B COE of that same bidding of your $35k COE.

e.g. the Cat B then is only $30k, that means your yearly depreciation is $3k pa, not 3.5k. the COE value will follow the prevailing category, not open cat.

so when you scrap at 5th year, you will get 15k, not 17.5k.

 

although LTA mentioned that whichever is lower, but in history, open cat is usually more expensive than others.

[Sony]

u sure on that?

 

i remembered when i bot my KIA years ago, i was given open Cat COE. And even though my car is under CAT A, the value of my COE is still Open Cat price.

 

I think Open Cat is like a wild card COE where it can be used for any car. But you may have to pay a premium as it is usually bid higher than the rest.

 

If say now i want to buy a 1.6L car.. so Cat A is at 35k. But dealer offered me the open Cat which is at 49k IF im willing to top up. So 2 person buying same car, may pay different prices because of the COE. I may be willing to top up 14k (urgent need for car) and my car will still be registered but under COE CAT, it is stated as OPEN CAT. So in that sense, my car has higher paper value compared to the the other same model but got it under CAT A.

 

 

you paid your premium to get a car but your premium will not translate into value when you scrap.. coz your Open cat will follow the prevailing cat value at that round of bidding.

 

 

[Chrispie]

you paid your premium to get a car but your premium will not translate into value when you scrap.. coz your Open cat will follow the prevailing cat value at that round of bidding.

 

 

oic. thanks for correcting. :)

 

wow.. that means for those who got open Cat this time to reg their Cat A car.. since difference is ard 14k.. when scrap, super lugi if when they bot the car they actually paid the extra to get the open Cat...

 

this scheme is so smart.. LTA is brilliant!

Edited April 11, 2010 by Chrispie

[Sony]

oic. thanks for correcting. :)

 

wow.. that means for those who got open Cat this time to reg their Cat A car.. since difference is ard 14k.. when scrap, super lugi if when they bot the car they actually paid the extra to get the open Cat...

 

this scheme is so smart.. LTA is brilliant!

 

 

This was clearly explained in the LTA website.. SE usually smoke a bit by tell people that "hey, we give u open cat that is worth more" but they stop short of tell you what happen when you sell car..

 

LTA is not really smart. they only tot of this coz last time, people hedge or bet on Open Cat but when 3months is up, they use it to register a bike and scrap it thereafter to get back money if they can't sell for profit.

[The_Bear]

This was clearly explained in the LTA website.. SE usually smoke a bit by tell people that "hey, we give u open cat that is worth more" but they stop short of tell you what happen when you sell car..

 

LTA is not really smart. they only tot of this coz last time, people hedge or bet on Open Cat but when 3months is up, they use it to register a bike and scrap it thereafter to get back money if they can't sell for profit.

 

moving goalpost is our national forte!

[Chrispie]

haha..yah lor.. im one of those smoked..

 

SE didnt tell me..

 

But i did read about the lower value thingy.. just didnt understand then (thats after i already got the car). And since was already driving, didnt really bother to find out more. I tot since log card says taht value, its that value already. When i sold the car, the dealer took that value to calculate as well. Maybe difference not that big, so its no big deal.

[The_Bear]

haha..yah lor.. im one of those smoked..

 

SE didnt tell me..

 

But i did read about the lower value thingy.. just didnt understand then (thats after i already got the car). And since was already driving, didnt really bother to find out more. I tot since log card says taht value, its that value already. When i sold the car, the dealer took that value to calculate as well. Maybe difference not that big, so its no big deal.

 

so u wanna start another thread to whine and try to overthrow the govt?

[Sony]

so u wanna start another thread to whine and try to overthrow the govt?

 

 

well, at least he see it as a premium to pay to put car on the road, while some, esp those in the BM thread want every dollar they sink in to come back with a dollar..

[Kusje]

When i sold the car, the dealer took that value to calculate as well. Maybe difference not that big, so its no big deal.

 

Stupid dealer?

[Chrispie]

so u wanna start another thread to whine and try to overthrow the govt?

 

 

overthrow? no lah.. im under marine parade.. wont ever get to vote.