COE solutions??

[Galantspeedz]

aiyah, here is not the real world, all we can do is just treat this place as virtual kopitiam, virtual reservist tok kok sing song session, when come face with the real world, all of us still suffer the same worldy pressures, needs and wants....hiaazizzzz.....i mentally prepared for 3 years down the road....though i secretly hope will have cheap coe

 

i also mentally prepared liao..

 

lucky all these years i still take bus and mrt to work.. so should not have much impact on me

[Galantspeedz]

Why wouldn't you change? The money that depreciate from your car is already gone - never coming back. Just make the best financial decision for now.

 

because i like the car more than money....

 

even during the lull COE period....all my cars are all 30k COE

[Tedlhw]

Personally I feel that charging something like a few dollars per km as road usage is disastrous. It will become too prohibitive to drive and just crazy.

 

Maybe the amount per km can be tweaked, but i am sure it can be tweaked to adjust to the optimal road usage levels.

 

This also addresses the fact that for many, a car is not a real need. ie don't have will die

A car is very often a status symbol, a statement "I can afford a 250K car"

With status symbols, the more expensive the better.

This also adds to distortions in COE system.

 

With my proposed system, the rich can still collect their Lambos and Ferraris.

But all without affecting anyone else.

 

If a Merc E200 cost SGD70k, do you think it is still status symbol?

Will people still rush to buy?

 

For a standard 2L car with a 100k COE,the cost of COE per year + road tax + ERP is maybe around 15k per year.

All i am doing is doubling it and change all the cost to usage and not ownership.

When u take up space on road, pay, simple clean, fair and sqaure.

[Cars08]

aiyah, i be a good boy, dont give Mods more work, they also got full time job but still must devote time to monitor the playground, make sure no hanky panky.....a thankless job which most people siam

 

true true...new resolution for 2013...come in to play...but play by the rules... at least this is their past time...my current job is a thankless job as I got to work w many ppl ...if they screw up i kena fark...Mod diff...ppl screw up...they ......

[Mustank]

When I started work, I was happy with subway and bus.

 

Today, I am even happier with my scooter even being a car owner.

 

We need to mature beyond the car-centric culture and creatively explore alternative transports, with skillsets some of us had learn when we were little younger...

 

 

http://www.businessday.com.au/executive-st...1203-2aqtr.html

 

if govt build serious park connectors from woodlands to shenton way, i would ride bicylcle to work, at least can get some excercise, me too fat liao

[Mustank]

true true...new resolution for 2013...come in to play...but play by the rules... at least this is their past time...my current job is a thankless job as I got to work w many ppl ...if they screw up i kena fark...Mod diff...ppl screw up...they ......

 

yalor, we should all obey the rules and play happily together , once they take away this playgound, then no more to play liao

[Mustank]

i also mentally prepared liao..

 

lucky all these years i still take bus and mrt to work.. so should not have much impact on me

 

actually, having low coe and high usage charges has one military advantage:

 

in times of , there are more motor vehicles assets that can be nationalised and deployed

[Wind30]

In recent months, Liu Tuck Yew gave hint that LTA may implement some kind of buffer system to moderately the bumper crop of COE deregistration in 2015-2019 so that the prices do not crash and that in the years after 2019, COE prices will not see the same rise as what we see today.

 

You have ideas why not feedback to LTA? As far my logical mind can deduce, pegging COE to an individual doesn't help with price fluctuation.

 

You mention that you have a car that comes with a $10k COE, is this the reason why you are proposing COE rebate be peg to current COE level? Why should a small segment of car owners benefit from the current high COE level? It is not right for the government to rebate on taxes (COE) more than what was paid for in the first place.

 

If your intention of the original post if to moderate COE price fluctuation, rest assure that LTA has a new formula that will do just that. The bad news is that prices may not move more than 50% from current price levels therefore the era of $2 or even $10,000 COE may never return.

 

are you sure LTA formula will get it right this time???? Are you going to wait until 2019 to find out if it works?? What about current lack of COEs on the market??

 

BTW, I will not sell my car even if I get 50% rebate because I really need it.

 

The more I think about it the better my solution sound. I think it is a win-win situation for EVERYONE.

 

1) The COE seller WINS because to him, he does not really need a car. He just bought a 50k hyndai 6 years back because cars is so cheap. He does not mind selling it for 55k now.

2) The new car buyer WINS because there is more COE quota on the market

3) the government also WINS because they have more COEs to sell. They buy back at 50% discount and sell at 100% price.

4) current car owners WIN because the net number of cars does not go up and it encourages those people who don't really need to drive to take public transport

5) Speculation will be minor because the government buys it at 50% discount and COE by its nature depreciates at 10% per annum so it is REALLY hard to make money unless COE prices go up like 30% a year or something.

6) it also discourages people to sell their COE when COE prices fall limiting fluctuations in COE supply.

 

 

This solution will be popular too because everyone wins, unlike my previous suggestions which solves problem but will be unpopular. It solves the problem of the inefficient market. There are many cars out there who have COEs bought at 10k and are willing to sell their COE at 40k. There are many new car buyers who is willing to pay $80k for new COEs. So why does not the government be a middle man and grabbed up all the old COEs at a discount and sell it to the new car buyers keeping 50% as commission.???

 

EVERYONE WINS??

Edited December 27, 2012 by Wind30

[Maz0608]

driving is like smoking, once you try/use it, you can't do without it [laugh]

 

no matter how poor you are, you must get hold of one stick/car

 

Sad to say, I agree with you.

[Tedlhw]

Bro, your system is very grey.

Tied to persons, 1 married couple 1 car.

 

Unmarried people, can have car?

Divorced people can have car?

Widowed people can have car?

 

Widowed father live with son, can have how many car?

 

The truth is your system will have many many disgreements because we have to make many judgements about who deserves car/COE more, married, unmarried, widowed, divorced, with childrem, w/o children, with elderly or w/o?

 

The situations are endless.

[Galantspeedz]

actually, having low coe and high usage charges has one military advantage:

 

in times of , there are more motor vehicles assets that can be nationalised and deployed

 

then we should all buy boats, we are surrounded by water after all lol

[Wind30]

Bro, your system is very grey.

Tied to persons, 1 married couple 1 car.

 

Unmarried people, can have car?

Divorced people can have car?

Widowed people can have car?

 

Widowed father live with son, can have how many car?

 

The truth is your system will have many many disgreements because we have to make many judgements about who deserves car/COE more, married, unmarried, widowed, divorced, with childrem, w/o children, with elderly or w/o?

 

The situations are endless.

 

I agree. I think it is not feasible. But I got solution no 2! COE rebate scheme.

[Maz0608]

simi calling? boh lui, take bus lor, if i tio toto, renew coe lor 我最看得开 le

Siow bo? Tio toto, I chut porker!

[Darryn]

I can't foresee giving up driving.

 

If come renewal time the COE is at a price I am unable / unwilling to pay then I don't know how...probably run road I guess.

 

But yeah - I think that something will be done about the famine / feast cycle. Either holding some COE back or setting a floor price seems the most probable to me.

[Singhao]

I wouldn't change. Taking a 520i (common car nowadays) and ignoring interest costs:

 

Final price assume $245k, COE $95k, OMV $40k.

 

Drive 3 years scrap, get back rebate $96,500. Depreciated $148,500.

 

Let's say COE plunge to $10k. 520i now costs only $160k.

You drive to year 10 and then scrap for rebate of $20,000. Depreciated $140,000.

 

Total depreciation over 13 years = $288,500

Annual depreciation = $22,192

 

If didn't change car, total depreciation over 10 years = $225,000

Annual depreciation = $22,500

 

Once you add in interest penalties due to early redemption, it will add on to the 13 years depreciation.

 

 

Lets say you buy your COE at $95k - that's $9.5k per year.

 

2 years later, COE falls to $50k.

 

Scrap car - you get back 9.5k x 8 years or $76k

 

Your new COE costs $50k - you have made an instant "profit" of $26k to offset your car depreciation, and you have an extra two years of life on the COE.

 

Basically you will be able to change to a brand new car for no, or very little cost. (i.e - by scrapping, you will get back rebates and body value basically equal to the price of a new car)

 

Why wouldn't you change? The money that depreciate from your car is already gone - never coming back. Just make the best financial decision for now.

 

[Tedlhw]

I wouldn't change. Taking a 520i (common car nowadays) and ignoring interest costs:

 

Final price assume $245k, COE $95k, OMV $40k.

 

Drive 3 years scrap, get back rebate $96,500. Depreciated $148,500.

 

Let's say COE plunge to $10k. 520i now costs only $160k.

You drive to year 10 and then scrap for rebate of $20,000. Depreciated $140,000.

 

Total depreciation over 13 years = $288,500

Annual depreciation = $22,192

 

If didn't change car, total depreciation over 10 years = $225,000

Annual depreciation = $22,500

 

Once you add in interest penalties due to early redemption, it will add on to the 13 years depreciation.

 

Bro your numbers did not include car body. A 3 years old BMW 520 should fetch 10-20k or more, no?

If you include this 10k-20k, then i will definitely change.

Cheaper, not to mention get a new car with latest gadgets and (probably) lower maintenance.

Who dont want?

 

[Darryn]

I wouldn't change. Taking a 520i (common car nowadays) and ignoring interest costs:

 

Final price assume $245k, COE $95k, OMV $40k.

 

Drive 3 years scrap, get back rebate $96,500. Depreciated $148,500.

 

Let's say COE plunge to $10k. 520i now costs only $160k.

You drive to year 10 and then scrap for rebate of $20,000. Depreciated $140,000.

 

Total depreciation over 13 years = $288,500

Annual depreciation = $22,192

 

If didn't change car, total depreciation over 10 years = $225,000

Annual depreciation = $22,500

 

Once you add in interest penalties due to early redemption, it will add on to the 13 years depreciation.

 

What about body value?

 

[Knighthunter]

COE is good way to control car population but the quota had been screwed by goondus previously, resulting in this sky high price.

If I am remember 10 years ago, when COE still relative high there few companies running car share program. One I remember clearly is Kah Share, I almost joined one before I decided to buy my own car. What happen during cheap COE era all these car sharing companies went under, so about 10 years ago we are on good track but who made to COE down spirall and now skyrocketing price, I think the answer is easy to guess. SNAFU.