Today crazy coe

[NightWind]

======================================================================

 

By: Mellanie Hewlitt

Singapore Review

15 Jan 2005

 

COE, Parf, ARF - confused? Characteristics of The Great COE Scam

 

It is glaring that although Singapore has the world's most expensive

cars, the vast majority of car owners remain confounded by the

complicated pricing and ownership system. (See artcile from the New

Paper 14 Jan 2005 "COE, Parf, ARF - confused?")

http://newpaper.asia1.com.sg/top/story/0,4136,81225,00.html?

 

In all developed countries, buying a car is a simple and transparent

affair that is concluded between buyer and seller. The only other

third-parties involved are the insurance company and the finance

company. In Singapore a series of bureaucratic shields and paperwork

complicate the process.

 

The system is massively complicated, designed to confuse the average

car buyer. The objective is to disguise the underlying scam which

involves siphoning funds from the car owner into the bloated coffers

of the government.

 

The latest tender saw car COE premiums ending at $18,400 (up to

1,600cc) and $14,002 (above 1,600cc) - the lowest in over a decade.

The government is set to release between 100,000 to 120,000 COEs this

year. At an average COE "price" of approx SGD16,201 per COE this

amounts to a whopping SGD1,944,120,000/- in COE revenue for the

government.

 

Although the supposed objective of the COE system was to regulate

traffic flow and reduce traffic congestion, a number of

characteristic reveal the actual COE scam which has the hidden

purpose of siphoning funds from car owners.

 

The scam is Revealed via the following formulae:

 

COE Revenue = COE Price X Number of COE issued.

 

Regardless of the price of the COE, the total COE revenue collected

remains generally stable at approx SGD1.994 billion. This is because

any fall in price is compensated by issuance of more COEs hence

keeping the COE revenue relatively stable.

 

Below are some of the characteristics of the COE scam:

 

1) The illusion created by the Scam is that the price of the COE

flustuates as a result of demand and supply. In reality Car Owners

are actually providing a buffer for the government and ensuring a

steady COE income stream.

 

2) The scam also effectively encourages Car Owners to scrap perfectly

good vehicles early. 3-4 year old cars in mint condition and

purchased at very high COE prices are scrapped early when COE prices

fall. With a greater number of vehicles "retired prematurely" the

government can then issue more COEs at lower prices creating the

illusion of a COE market that is driven by demand and supply.

 

In the above scenario, the constant that is maintained is the COE

revenue. In a market that is truly driven by Demand and Supply, a

fall in demand will eventually lead to a fall in supply which will

translate into reduced sales reveunes.

 

3) It is Impossible to actually own a car in Singapore.

To ensure continuity of the COE income stream, the PAP government has

effectively made freehold car ownership in Singapore impossible. Car

Owners never actually "own" the car per say, even after spending so

much money on a piece of paper, all they actually hold is a lease

giving them a conditional revocable right to drive a car for 10 years.

 

At the expiration of this lease, the COE certificate is either

renewed via payment of additional fees by current owner, or (in event

the old owner chooses not to renew the lease) it is "purchased" by a

new bidder. Either ways the PAP government is assured of a never

ending income stream.

 

4) The scam is also revealed when a car owner attempts to scrap

prematurely. The system does not allow the car owner a cash rebate on

the balance COE. Instead, the car owner has to purchase another car

(and another COE) and deduct his COE rebates from the final purchase

price. This ruse ensures that COE money remains with the government

even when a COE is scrapped prematurely, thus assuring them of a

steady income stream, albeit at the expense of car owners.

 

5) This ruse has been used successfully for over a decade in

conjunction with a series of other hidden "taxes" (like the ERP, CPF,

GST etc) all designed to provide a cheap and ready source of revenue

for undisclosed government activities.

 

6) The scam is given a veil of legitimacy with the support of laws

and regulations. The local government owned media regularly report

that the COE system "is tightly regulated and very competitive".

 

7) A plethora of technical terms are used also add layers to the scam

and hide the underlying ruse. Terms like "COE", "PARF", "ARF", "OMV"

etc.

 

The COE scam also works in conjunction with other scams and is part

of a more elaborate process. On top of the COE, car owners also have

to pay Road Tax (which is reasonable) and also ERP (Electronic Road

Pricing) which imposes a further cost for road usage.

 

So Car owners are penalized not just for leasing a car but also for

the road usage.

 

8) Other countries like Hong Kong also successfully control traffic

and the COE concept is conspicuously absent from these countries. In

fact in Hong Kong although there is a high cost to owning a car, this

is contained in the parking fees and charges which are paid to

landlords. The main difference here is that the parking fees are

collected by land lords and channeled back into the private sector.

 

In Singapore the COE revenues totaling SGD2 billion are channeled

directly into government coffers. No one knows what happens to this

massive amount of money.

 

9) How does the government justify the existence of such a system in

the first place? After years of implementation, the original

objective of the system (which was to control traffic congestion) has

long since been lost. Traffic jams are a common occurence all over

the island especially during peak hours and even the implementation

of additional penalties like the ERP have failed to address this

problem.

 

So what exactly are Singaporeans paying for when there is no concrete

proof for justification of the system? Such an obvious scam would

have risen many questioning eyebrows in other developed nations. But

here in Singapore part of the reason for the success in the deceit

lies in the social political circumstances which are unique only to

Singapore.

 

There is basically no accountability in government administration and

the political system effectively discourages any calls for

clarifications. Law suites are used as a convenient tool to silence

political opposition members and the international press.

 

After decades of indoctrination, local citizens have adopted a spirit

of apathy and unquestioning obedience to any enforced regulations and

policies. Indeed the government scammers are sound very legitimate.

They are usually polite, friendly, personable, sincere, convincing,

and controlling; formidable foes for more trusting average Car Owner.

 

10) Social and Psychological Indoctrination are important tools in

the scammers arsenal. In Singapore, a car has been portrayed by the

government as a "luxury item" in order to justify its high price.

 

On the other hand, government policies place immense pressure on

families to reproduce and more than one child. This, coupled with

uncertain employment (and high unemployment rates of 4.50% p.a.) have

necessitated dual income families with both spouses working long 12

hour work days. The hectic lifestyle and multiple roles of both

spouses (as wage earner, parents and care-takers of their own

parents) have rendered a car a very necessary asset.

 

11) Whilst the average con artist and scammer can be reported to the

authorities, how does one seek recourse when the local authorities

themselves are part of the elaborate hoax? The picture remains bleak

for Singaporeans as there seems no way out for them from this system.

 

12) According to a BBC article, not all scams are illegal by

definition. In fact some software scams are perfectly

legal. "Unscrupulous software suppliers have been taking advantage of

software license agreements to trick customers out of anything from

 

[Pisces69]

I guess majority are or have already mentally prepared for such nonsenses to happen after the erection.

Yet, it's a LPPL/suck thumb thingy.

 

 

 

Not really. If more vote fr opposition, ty wil b worried n wont b so yaya papaya anymore n treat us less like stupid kids n feed us wh so much BS all e time.

 

If ty feel their million $ jobs r at risk, ty will b less likely to take advantage of us so often. Maybe then we can hope to get a fairer deal.

[WTF]

if job require to drive, u should have car allowance ma

Haiz....my company car allowance is pathetic and only office carpark is paid for. We're also paid by mileage but the boss scrutinized our claims and even the route we took to the customers' site.

 

The company is also looking into changing it to a fixed allowance but only about 80-90% of our current claim without any carpark paid for.....

 

That's why many of my colleagues including those in sales don't want to drive......only 2 of us drives.......

[Branteo]

High COE huat har...for those who bought cheap (eg in e past 2 or 3yrs), n don't really need the car as a necessity...sell it to 2nd hand car dealer or direct...:)

 

Ridiculous one lah!

 

My 2007 1st Qtr Civic 1.8L (present mileage almost reaching 64K km) was purchased at about S$74K.

 

Just did a quick glance at SGcarmart - similar rides, with higher mileage, are being hawked at S$58-60K!

 

Amazing!

 

Then again, ... cannot sell, ... sell high, buy high.

 

Hope this Civic can last for another 2-3 years, ... then review the situation.

 

Sianz.

[Minikong]

Haiz....my company car allowance is pathetic and only office carpark is paid for. We're also paid by mileage but the boss scrutinized our claims and even the route we took to the customers' site.

 

The company is also looking into changing it to a fixed allowance but only about 80-90% of our current claim without any carpark paid for.....

 

That's why many of my colleagues including those in sales don't want to drive......only 2 of us drives.......

 

i can understand your situation, as me myself is also in such a situation, driving is really due to my own personal reference

[Pisces69]

I just came back from KL...it will prob be my last drive there for awhile. My car insurance covers only vehicle theft and the replacememt cost for the vehicle itself only. THE INSURANCE DOES NOT COVER COE.

 

Even if i get a new car i will still need to fork out another $62k to get a COE...and next month it will be worse as price may increase more.

 

Some of u bros r laughing as u say ur old rides are worth more. But think about the poor sales guy whose 9.9yr old COE on his Corolla will expire next month and he has to pay $62k to renew COE for a 10 yr old jap outdated rust bucket sedan.

 

Think about what happens when the same thing happens to your current ride.

 

Its not so funny any more when u see things in that perspective.

 

The only one laughing all the way to the Bank is the PAP govt......who use this scam to suck money from all of us. Just think and reflect about it.... :(

 

 

Maybe if next election we vote out e tpt minister n an opposition comes in to become e next tpt minister, we see COE being removed n we hv less of these kind of stupid problems?

 

[Pisces69]

in terms of 1.6 and below car, i could not find a car that give me more driving pleasure than a mini.

and it look is just too cute for me not to buy back again, but again, my previous mcs become like this, is due to my modification, so nothing wrong with the car thou haha.

and i love the face lift visual boost, and valvetronic upgrade. it give me a total different view again on the face lift

 

 

Then u sud hv gone fr e John Player MCS. All mods properly done n under warranty even.

 

[Curahee]

Maybe if next election we vote out e tpt minister n an opposition comes in to become e next tpt minister, we see COE being removed n we hv less of these kind of stupid problems?

 

He is East Coast GRC ah tao... I think impossible to be voted out coz at the first place no opp will be so silly to challenge his GRC, all elites living there... These riches prosper under this system, they will not vote for opp... Opp can only target poor ppl area.

[TandemAssassin]

Hmm.... i wonder how many of the folks you gave in the example are out there....

 

the facelift Altis has been in the market for a few months already, and i'm hardly seeing any on the roads.....

 

oh, by the way, the Altis and Jetta are selling for roughly the same price, with $10k differentiating them.....

 

i suppose most would go for VW's....especially the Jetta sedan, or the current best-selling VW model, the Touran MPV....

 

people still have that stigma with Citroen, Opel and Renault i guess....

 

Go down to Borneo and ask about the Altis waiting time and you have got your answer.

 

If u refer to LTA stats, Toyota is still shifting more cars than VW. 444 for Toyota and 188 for VW in Oct. So yes, I think there are quite a few people who still prefer brand new Jap cars compared to stretching their loan for a new Continental car.

 

I will agree if you say MORE people are going for VW. But not when you say MOST. As the stats show, most still prefer Toyota. Though the balance is slowly shifting.

 

 

[Minikong]

Then u sud hv gone fr e John Player MCS. All mods properly done n under warranty even.

 

overpriced, and it is just in manual form, and the seats is racing seats, that look dman ugly and cheapo.

i can get the jcw upgrade kit at $5k also lol, the thing to look out for is the mini roadster coming in 2 or 3 years time, that got more power, and look sibei soilid

Edited December 8, 2010 by Minikong

[Pisces69]

You say until the situation so dire, but you can buy a 4-5 year old sedan for low 30k on the resale market. Must die die buy new COE or buy new car meh?

 

 

Now all 2nd hand cars also shoot up in price cos ty wil follow e price movement of e new COEs.

 

Now i wait till feb n see how. Maybe i sell my 5 year old car at a big profit n ride bicycle till e COE comes down again.

[WTF]

i can understand your situation, as me myself is also in such a situation, driving is really due to my own personal reference

For me, I bought my ride 'cos of work requirement. 1st few months into the job without a car I got stuck in places like Tuas and Jurong Island and unable to get a cab even thru' booking during peak hours. When I finally got home by public transport carrying all the tools and parts, it's already past 8pm.

 

However if I were to change to a new job (planning to do so) which do not require a car, I'll gladly sell it away as I don't want to be held hostage to it and the money could be better spent elsewhere. This is just my personal pov.

 

I agreed that having a car gives privacy and convenience but having taken public transport for umpteen years before I got a car, I think I can live with it just like thousands if not millions do.

[Pisces69]

So is really give u a chicken leg and take back the whole chicken from u

 

 

More like give u a roast chicken n take back a roast pig.

[Civic6228]

My 2 cents ..

 

Cars in Singapore is more of a "want" rather than a "need". I agree with some people that needs to drive a car for work and a car would be a "need".

 

We have a "good" public transport system and it works well for most of us. I agree with the cut of the COE to reduce the congestion on the road. The car population has to be controlled else our traffic will be like the traffic in Manila, Jakarta or Bangkok.

 

In conclusion .. willing buyers/willing sellers .... The price of COE is high and if someone decide to buy a new car, he/she has to pay higher COE. Existing car owners would agree that the congestion on the road is getting worse and this is caused by the incorrect projections over the years and the release of excessive COEs. The release of COEs should be based on the number of cars scrapped plus a allowable percentage of growth.

 

 

 

 

[Minikong]

overpriced, and it is just in manual form, and the seats is racing seats, that look dman ugly and cheapo.

i can get the jcw upgrade kit at $5k also lol, the thing to look out for is the mini roadster coming in 2 or 3 years time, that got more power, and look sibei soilid

 

http://www.conceptcarz.com/vehicle/z17293/...pe-Concept.aspx

[Pisces69]

Hmmm .... my humble Honda Civic also Cat B COE leh.

 

Haha!

 

 

HUAT AH

 

[Pisces69]

might as well try telling the sky dun rain coz u need to sun ur underwear.

 

 

 

Hahaha. Nice one.

 

[Pisces69]

======================================================================

 

By: Mellanie Hewlitt

Singapore Review

15 Jan 2005

 

COE, Parf, ARF - confused? Characteristics of The Great COE Scam

 

It is glaring that although Singapore has the world's most expensive

cars, the vast majority of car owners remain confounded by the

complicated pricing and ownership system. (See artcile from the New

Paper 14 Jan 2005 "COE, Parf, ARF - confused?")

http://newpaper.asia1.com.sg/top/story/0,4136,81225,00.html?

 

In all developed countries, buying a car is a simple and transparent

affair that is concluded between buyer and seller. The only other

third-parties involved are the insurance company and the finance

company. In Singapore a series of bureaucratic shields and paperwork

complicate the process.

 

The system is massively complicated, designed to confuse the average

car buyer. The objective is to disguise the underlying scam which

involves siphoning funds from the car owner into the bloated coffers

of the government.

 

The latest tender saw car COE premiums ending at $18,400 (up to

1,600cc) and $14,002 (above 1,600cc) - the lowest in over a decade.

The government is set to release between 100,000 to 120,000 COEs this

year. At an average COE "price" of approx SGD16,201 per COE this

amounts to a whopping SGD1,944,120,000/- in COE revenue for the

government.

 

Although the supposed objective of the COE system was to regulate

traffic flow and reduce traffic congestion, a number of

characteristic reveal the actual COE scam which has the hidden

purpose of siphoning funds from car owners.

 

The scam is Revealed via the following formulae:

 

COE Revenue = COE Price X Number of COE issued.

 

Regardless of the price of the COE, the total COE revenue collected

remains generally stable at approx SGD1.994 billion. This is because

any fall in price is compensated by issuance of more COEs hence

keeping the COE revenue relatively stable.

 

Below are some of the characteristics of the COE scam:

 

1) The illusion created by the Scam is that the price of the COE

flustuates as a result of demand and supply. In reality Car Owners

are actually providing a buffer for the government and ensuring a

steady COE income stream.

 

2) The scam also effectively encourages Car Owners to scrap perfectly

good vehicles early. 3-4 year old cars in mint condition and

purchased at very high COE prices are scrapped early when COE prices

fall. With a greater number of vehicles "retired prematurely" the

government can then issue more COEs at lower prices creating the

illusion of a COE market that is driven by demand and supply.

 

In the above scenario, the constant that is maintained is the COE

revenue. In a market that is truly driven by Demand and Supply, a

fall in demand will eventually lead to a fall in supply which will

translate into reduced sales reveunes.

 

3) It is Impossible to actually own a car in Singapore.

To ensure continuity of the COE income stream, the PAP government has

effectively made freehold car ownership in Singapore impossible. Car

Owners never actually "own" the car per say, even after spending so

much money on a piece of paper, all they actually hold is a lease

giving them a conditional revocable right to drive a car for 10 years.

 

At the expiration of this lease, the COE certificate is either

renewed via payment of additional fees by current owner, or (in event

the old owner chooses not to renew the lease) it is "purchased" by a

new bidder. Either ways the PAP government is assured of a never

ending income stream.

 

4) The scam is also revealed when a car owner attempts to scrap

prematurely. The system does not allow the car owner a cash rebate on

the balance COE. Instead, the car owner has to purchase another car

(and another COE) and deduct his COE rebates from the final purchase

price. This ruse ensures that COE money remains with the government

even when a COE is scrapped prematurely, thus assuring them of a

steady income stream, albeit at the expense of car owners.

 

5) This ruse has been used successfully for over a decade in

conjunction with a series of other hidden "taxes" (like the ERP, CPF,

GST etc) all designed to provide a cheap and ready source of revenue

for undisclosed government activities.

 

6) The scam is given a veil of legitimacy with the support of laws

and regulations. The local government owned media regularly report

that the COE system "is tightly regulated and very competitive".

 

7) A plethora of technical terms are used also add layers to the scam

and hide the underlying ruse. Terms like "COE", "PARF", "ARF", "OMV"

etc.

 

The COE scam also works in conjunction with other scams and is part

of a more elaborate process. On top of the COE, car owners also have

to pay Road Tax (which is reasonable) and also ERP (Electronic Road

Pricing) which imposes a further cost for road usage.

 

So Car owners are penalized not just for leasing a car but also for

the road usage.

 

8) Other countries like Hong Kong also successfully control traffic

and the COE concept is conspicuously absent from these countries. In

fact in Hong Kong although there is a high cost to owning a car, this

is contained in the parking fees and charges which are paid to

landlords. The main difference here is that the parking fees are

collected by land lords and channeled back into the private sector.

 

In Singapore the COE revenues totaling SGD2 billion are channeled

directly into government coffers. No one knows what happens to this

massive amount of money.

 

9) How does the government justify the existence of such a system in

the first place? After years of implementation, the original

objective of the system (which was to control traffic congestion) has

long since been lost. Traffic jams are a common occurence all over

the island especially during peak hours and even the implementation

of additional penalties like the ERP have failed to address this

problem.

 

So what exactly are Singaporeans paying for when there is no concrete

proof for justification of the system? Such an obvious scam would

have risen many questioning eyebrows in other developed nations. But

here in Singapore part of the reason for the success in the deceit

lies in the social political circumstances which are unique only to

Singapore.

 

There is basically no accountability in government administration and

the political system effectively discourages any calls for

clarifications. Law suites are used as a convenient tool to silence

political opposition members and the international press.

 

After decades of indoctrination, local citizens have adopted a spirit

of apathy and unquestioning obedience to any enforced regulations and

policies. Indeed the government scammers are sound very legitimate.

They are usually polite, friendly, personable, sincere, convincing,

and controlling; formidable foes for more trusting average Car Owner.

 

10) Social and Psychological Indoctrination are important tools in

the scammers arsenal. In Singapore, a car has been portrayed by the

government as a "luxury item" in order to justify its high price.

 

On the other hand, government policies place immense pressure on

families to reproduce and more than one child. This, coupled with

uncertain employment (and high unemployment rates of 4.50% p.a.) have

necessitated dual income families with both spouses working long 12

hour work days. The hectic lifestyle and multiple roles of both

spouses (as wage earner, parents and care-takers of their own

parents) have rendered a car a very necessary asset.

 

11) Whilst the average con artist and scammer can be reported to the

authorities, how does one seek recourse when the local authorities

themselves are part of the elaborate hoax? The picture remains bleak

for Singaporeans as there seems no way out for them from this system.

 

12) According to a BBC article, not all scams are illegal by

definition. In fact some software scams are perfectly

legal. "Unscrupulous software suppliers have been taking advantage of

software license agreements to trick customers out of anything from