Unbundle COE from car loan

[Vegas]

First they tax high high (250%?) from the $$ of the car, then

force u buy coe for the car, then

make u make erp for the car, then

tell u everything also market forces....

 

Till now, no country in the world have this COE thing!

COE is the cash cow of the government. 2 or 3 years back, coe plenty, lower $$ multiply by more quantity

now, quantity reduce, COE up. Govt make the same $$!

 

if COE no loan, see how many pple will buy a car! then COE $$ will drop liao lor

[Gukubird]

But we need to have a functioning Public transport system for the massess and new comer 60K increase per year

 

Can the current system handle?

[1fast1]

I don't quite agree. The problem of congestion arose because LTA did not do a good job in restricting the number of COEs. If LTA pegs the COE to a 0% vehicular growth rate, we will see no more growth in cars.

 

See, that's kind of my point. This gahmen has proven time and again to be quite capable of royally screwing up its projections. At least, if we let the populace purchase cars on the free market, but then charge them a severely disincentivising rate for actually using it on the road, we'll see some immediate alleviation of the congestion. Remember, I'm not talking about pegging the rates just so they cause "minor discomfort" to the average motorist. I'm talking about causing "ball-crushing agony", if you forgive the metaphor.

 

So the COE itself is not a problem. Furthermore, if you don't have COE and allow people to just freely buy cars, the parking crunch we see at car parks will just be worse and worse.

 

I've addressed this point in my previous post on this. Potential car buyers need to have a secured parking spot, like in the Japanese system.

 

I've also addressed other matters like the use of cars for business purposes, etc., which can be handled through a corporate tax-break scheme. All in my previous post, lazy to type out again, please search.

 

 

[1fast1]

One of the first thing on a sinkie grads mind upon graduation is a car.

 

If they can buy they would, then they find themselves frustrated that they have spent what little money they have only to find that they cannot afford to drive.

 

When I first graduated, I was supprised by the number of my friends would bought cars but found that because they worked in the city, ERP + parking .... they curse and swear.

 

You do one thing to the current system you create another frustration. You are merely changing the demographic of who are frustrated.

 

Too bad, frus then frus lor. Can't please everyone. People are even more likely to become that way if they've paid what they're paying now for cars, then find they're too expensive to run. At least in my "vision", if the other taxes and surcharges are scrapped, cars will become dirt cheap to buy (like in the US), and people will be less rabid about just parking and admiring them most of the time.

 

If the COE system had actually done a good job of curbing car growth, I would've been OK with it. But, as I said in the last post, the gahmen's screwed up their projections (again!) and that's led to the mess we find ourselves in now. Let's implement a system that addresses the fundamental problem, which is traffic density on the roads.

[SeowChia]

So much conflict in his words. First he talks about COE being a deterrence for ppl to buy a car. Dan he suggests the authorities to look into the system to help bring sanity to the COE. Wtf? If COE not high, how to be a deterrence?

good point

[Mllcg]

Good suggestion but it wont work here, Sinkie will grumble to pay a dollar just to get past CTE till 10pm or 1030pm for home, let alone 20 bucks tolls fee.

 

we will always rem MBT for his wise idea, all motorists salute him.

 

grumble dont drive lor.

 

take train wont cross 5 bucks.

 

go read up on tolls in japan, hong kong and USA. u will be suprised why people all prefer taking the train.

Edited September 8, 2011 by Mllcg

[Jp66]

Steady!

 

I support COEs to be paid in full cash and then loans for cars up to 70% of the Car price excluding COE for a tenor of 5 yrs max allowable.

 

maybe take the first step, COEs to be paid in cash by owner/buyer otherwise cannot buy car.

I wish you are the chief of MAS

[Mllcg]

Too bad, frus then frus lor. Can't please everyone. People are even more likely to become that way if they've paid what they're paying now for cars, then find they're too expensive to run. At least in my "vision", if the other taxes and surcharges are scrapped, cars will become dirt cheap to buy (like in the US), and people will be less rabid about just parking and admiring them most of the time.

 

If the COE system had actually done a good job of curbing car growth, I would've been OK with it. But, as I said in the last post, the gahmen's screwed up their projections (again!) and that's led to the mess we find ourselves in now. Let's implement a system that addresses the fundamental problem, which is traffic density on the roads.

 

0% is impossible. u scrap, u definately want to get another one. so how?

 

1.5% is only a nett increase of 15000 vehicles on the road.(we have 1million vehicles now.)

[Felipe]

I wish you are the chief of MAS

 

govt will nvr allow COE to be paid in cash simply bcos COE as some folks pointed out is a cash cow.

 

some examples of cash cows govt changed their views on-

 

1) last time downpayment for car at 20% with 7 yr loan.car sales were so dismal that govt laxed all the rules. lucky they didn't do it with property, if not we'll have our subprime here.

 

2) Casino. for saying casino is bad and everything, in the end, build not one but 2 casinos.

 

3) cigarettes bring in revenue too, so it will stick around.

 

the way i see it, govt will most likely go the charge on usage basis route. This is the worst solution cos cars will continue to expensive, and worse, even more expensive to drive. but govt is v gd at making ppl believe their solutions. The worst thing is when you got car, but when want to drive, keep thinking about this and that before driving. really pointless.

 

The usage plan is only good is if COE is scrap but don't bet on it cos if it's a cash cow, it'll stick around.

[Trebuchet]

Steady!

 

I support COEs to be paid in full cash and then loans for cars up to 70% of the Car price excluding COE for a tenor of 5 yrs max allowable.

 

maybe take the first step, COEs to be paid in cash by owner/buyer otherwise cannot buy car.

 

 

Nice. But myopic. How many truly financially savvy people would buy a car if you had to pay full cash for COE and yet only own a car for 10 years? At this kind of prices?

 

Maybe these fit you:

 

1. Maybe you have been living in this frog's well for too long to care about the relative cost of cars here vs that of other countries. I suppose you like it here well enough and don't care that they cost so much more. There's no COE in any other country, you know. So why pay COE in full here when you can pay for the whole car for the cost of the COE in another bigger country, with better roads, more scenic drives and wider range of choices? So that tells you are enjoying the present system and it benefits you in a way that it doesn't benefit others. Making you a minority.

 

2. Could it be that you really have enough money put away that you don't care if you throw money away every few years on cars and their costs? Again, it reads like you'll support a full cash settlement of COE but not fundamentally oppose it, though to be fair you didn't literally say that, but I kind of suspect it because I don't remember you've actually said anything against the COE system.

 

3. Full COE payment means traffic-free roads means enough incentive for you to forget about the moneys that the government won't make from having many cars on the road (supposing COE is a huge cash cow), and so will instead tax you in a myriad of other ways to make up for it. This reads like you're okay with that because you are rich, but that also means you don't care about how it impacts people not so well off. Making you a prince amongst paupers.

 

 

Sorry dude, but then again I take it back, I'm not sorry at all actually. You invite this kind of response with the tone of your comments. Feel free to diss-miss me, it is after all, a privilege for the very few. You'll be an elite whether or not you disagree with me.

Edited September 8, 2011 by Trebuchet

[Chongster]

I think this is an opportunity to kill 3 birds with 1 stone.

 

1. Too Many Fts

2. Low birth rate

3. people keep complaining about coe and come up with 'solutions' that inevitable favour them personally without considering the wider good. And blame gov when it does not favour them.

 

 

Give COE free to every family to have a new baby and let them do whatever they want with it

 

I like this idea Everyone with a 3rd child get a free COE on the basis of helping them afford a car to drive all those kids around. and the recipient can choose to sell it at market value, effectively making the market pay for a very substantial childcare benefit.

[Vhtfhwlego]

Steady!

 

I support COEs to be paid in full cash and then loans for cars up to 70% of the Car price excluding COE for a tenor of 5 yrs max allowable.

 

maybe take the first step, COEs to be paid in cash by owner/buyer otherwise cannot buy car.

COE will be deem as sperate value asset to the banks. Quicker and faster way to earn more interest.

Loans used to be 70% of the car value but in the current world, all banks "overdraft" to make more money.

& MAS allow it as it will create more jobs for the market.

 

[Somebody]

has any government body responded on this?

 

[Ender]

Support. Anything the do not encourage loan or instalment payment on luxury item I support. For most, car is a want and not a necessity.

[Throttle2]

Nice. But myopic. How many truly financially savvy people would buy a car if you had to pay full cash for COE and yet only own a car for 10 years? At this kind of prices?

 

Maybe these fit you:

 

1. Maybe you have been living in this frog's well for too long to care about the relative cost of cars here vs that of other countries. I suppose you like it here well enough and don't care that they cost so much more. There's no COE in any other country, you know. So why pay COE in full here when you can pay for the whole car for the cost of the COE in another bigger country, with better roads, more scenic drives and wider range of choices? So that tells you are enjoying the present system and it benefits you in a way that it doesn't benefit others. Making you a minority.

 

2. Could it be that you really have enough money put away that you don't care if you throw money away every few years on cars and their costs? Again, it reads like you'll support a full cash settlement of COE but not fundamentally oppose it, though to be fair you didn't literally say that, but I kind of suspect it because I don't remember you've actually said anything against the COE system.

 

3. Full COE payment means traffic-free roads means enough incentive for you to forget about the moneys that the government won't make from having many cars on the road (supposing COE is a huge cash cow), and so will instead tax you in a myriad of other ways to make up for it. This reads like you're okay with that because you are rich, but that also means you don't care about how it impacts people not so well off. Making you a prince amongst paupers.

 

 

Sorry dude, but then again I take it back, I'm not sorry at all actually. You invite this kind of response with the tone of your comments. Feel free to diss-miss me, it is after all, a privilege for the very few. You'll be an elite whether or not you disagree with me.

 

ok since i have no other options to pick.

i'll pick 1 and 2 and 3.

 

not looking to be an MP nor a champion of the people against COE.

so dont have to speak in a politically correct manner nor stand on anyone's side except my own.

 

it's a cruel world , dude.

 

 

 

 

[Throttle2]

Support. Anything the do not encourage loan or instalment payment on luxury item I support. For most, car is a want and not a necessity.

 

yyeaaahhhhh.....!

[Ithunk]

how to unbundle?

[Metalslug2]

Based on this guy suggestion, he may as well say pay house in full no loan so that prices will not increase. For car, no loan so that prices will not increase too. Basically reduce the number of pple who can own property and car in SG. In the end, only the rich will own these assets.

 

Really dont know what he is trying to achieve here.