Should COE cert follow the owner, not the car?

[KARTer]

Quite interesting and actually quite complicated...

 

It all started out to "control" the number of cars in "small" S'pore. So to make it a little unreachable for some... make it expensive la.. everything... petrol,COE,road tax, ERP, parking, insurance.

 

Not until recently more ppl have earn their way up thru the years of labour to finally achive the unreachable, the ones who are already up there takes the advantage in having more of what they need...Not that they deserve it too but the whole system was put up to ensure no over population of vehicular traffic... not that it was made to make everyone afford a car or 2 or 3... SO everything has to go UP again la. Yes it sucks... to the core.... we can only envy other nation where owning a car is not a liability but a means of transportation...simple thing for ppl to go from point A to point B.

 

If the gap becomes increasingly big between the working class (who struggles to make ends meet and own a basic humble car) and the rich (who can afford many cars no matter how expensive COEs are), as we can see is actually happening now, then singapore has not succeded in creating a good and fair place for its ordinary ppl...........

 

In order to avoid becoming an unstable (future unrests due to big gap between ordinary and the rich) but be a fair country, the gahmen needs to make essential things affordable to most of its ppl eg basic car etc.

 

The COE system is not helping to achieve this.

Edited December 9, 2010 by KARTer

[Eyke]

I agree with TS that COE potentially can follow the owner for a period of X years.

- LTA can still enforce car ownership for people who have COE, for eg. if COE not used for an extended period of time, say 2 years, it will automatically be terminated.

 

feasible suggestion, that also solves the issue of scrapping perfectly good cars at 10yrs of age.

 

but limit for non-usage should be shorter eg. 6mths or less.

[Eyke]

In order to avoid becoming an unstable (future unrests due to big gap between ordinary and the rich) but be a fair country, the gahmen needs to make essential things affordable to most of its ppl eg basic car etc.

 

gov has never recognized car ownership as 'essential'

[Mightymito]

Good idea. Then those who own a coe can wear a T-shirt or a badge stating " I may not own a car but I am rich enough to own a COE"

 

[LoverofCar]

COE won't follow the owner for sure......the long term debt will......

[Haziqko]

If the gap becomes increasingly big between the working class (who struggles to make ends meet and own a basic humble car) and the rich (who can afford many cars no matter how expensive COEs are), as we can see is actually happening now, then singapore has not succeded in creating a good and fair place for its ordinary ppl...........

 

In order to avoid becoming an unstable (future unrests due to big gap between ordinary and the rich) but be a fair country, the gahmen needs to make essential things affordable to most of its ppl eg basic car etc.

 

The COE system is not helping to achieve this.

 

 

thats why i said it was not meant to be fair but just another money making tool... it has become a luxury to own a car... cant you see only in S'pore ppl take care of their car better than anything else...??? Some ppl I know don even drive out when it rains... huh...???

 

i'm also lucky i bought my car before Gahmen blow more balloons...

 

 

 

 

[Haziqko]

For your reading pleasure only...

 

 

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

 

[KARTer]

gov has never recognized car ownership as 'essential'

As our public transport system is obvious to most of the ppl not really a good system (ok, it's passable if we compare it with 3rd world countries, but what's the point if we do it?), whether the gahmen consider private car an essential item or not will not change the fact it is. The gahmen of course has the 'power' to ignore the fact, but ppl know the truth.

 

Therefore in a true democratic system, the ppl is given a chance during election with their vote to wake up 'someone' who chooses to ignore facts and the plight of ordinary ppl who struggle to have the essentials.

 

Come to think of it, without the usual channels found in other democratic countries for ppl to bring up problems (in this case car as life's essential item) and wake up those in-charge, voting right should therefore be fully utilised to achieve that here. A bit OT but true.

Edited December 9, 2010 by KARTer

[KARTer]

Good idea. Then those who own a coe can wear a T-shirt or a badge stating " I may not own a car but I am rich enough to own a COE"

 

Those who have to work very hard to pay for COE will wear headband with "I am a slave to COE" written in blood............ bansai!!!!

[KARTer]

For your reading pleasure only...

 

 

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?

............................................ The COE scam falls within this special category.

Pretty convincing article

Let's not adopt "guilty unless proven innocent" kind of attitude towards those who impose COE on us. But the element of 'scam' should not be entirely ruled out also.

 

Objectively, if any scheme does not produce the results it's owner claims / trumpets it will, it is useless especially so if it sucks hard-earned money from ppl the scheme was supposed to serve.

 

Why such an useless scheme is still forced on the ppl??............ it does make money for those who impose it, thats why!