COE solutions??

[Civicblade]

Comprehensive and island wide usage based pricing for vehicle population control is a better solution than the COE system because:

 

1) assuming that it removes the need for COE and ARF (be prepared for very high usage cost, $20 per trip ERP, $3 per litre fuel levy etc) then car prices would be OMV plus some import duties. A BMW 320i can be bought brand new for ~$35000 and a Chery A1.6 for $7000. Not many would mind buying a $7000 tool/equipment and letting it depreciate over 20-25 years even if you don't get to use it everyday (Singapore context).

 

2) We can own cars without expiry dates, just like in Australia, USA and Malaysia, as long as we can show proof of parking spot availability. There will be many many more cars registered, maybe even up to 10x more than the current numbers or 10million vehicles. As long as we can build enough parking for these cars, the numbers of cars will not pose a problem to traffic as the high road usage charges will limit the number of vehicles on the road at any one time.

 

3) The downside is that for example, a middle income person like me, usage charges would be so costly that I can no longer afford to drive to work on a daily basis. I may have to drive on alternate days. The frequency of road use is determined by your ability to pay for the road usage. Of course, the rich and wealthy will be able to drive all the time.

 

4) If the system is comprehensive enough, the road pricing can be adjusted either instantaneously based on real time traffic speed or for known travel pattern. For example during Chinese new year, the price of road usage may triple to discourage driving and make more people switch to public transport or we can allow free for all during Chinese New Year when we let everyone experience traffic hell on earth. We can even fine tune road charges such that roads leading to popular sports event, like a major football tournament is price multiple times of the normal usage rate.

 

5) Car park charges in mature estates or commercial buildings will skyrocket due to the much larger car population. This is already what is happening in urban centres of Australia and USA. I parked for 1.5 hrs in Melbourne city centre and paid AUD27.50, and this is the norm.

 

6) Disclaimer: do not be surprised if the average amount of money that someone has to spend on a road usage charge system is equal to the current COE prices. Road usage charge is also an open pricing mechanism. The advantage of a road usage pricing system is that the consumer gets to choose if he/she is willing to pay for using the resource.

Edited December 26, 2012 by Civicblade

[BMWX5]

I think prices of COE should be tiered based on whether one is a citizen, PR, foreign talent etc. Citizen should pay less...

[Wind30]

Problem statement.

COE prices is way too high during some years. This is caused by the system which encourages years of boom followed by years of famine.

To make it clearer, ideally, every year there should be 10% of cars getting deregistered due to COE expiry. The preceding 6 months of COE deregistration forms the supply of new COE. This 10% number is HUGE compared to the 0.5% annual growth rate projected. Fluctuating COE prices cause everyone to scrap cars and buy COEs during the "cheap" years concentrating supply into boom years.

 

To me for a functioning market, rising prices must reduce demand (less people buy) and increase supply (more people want to produce). Rising COE prices does reduce demand but it also reduce supply because less people want to deregister their cars. Thus the market is not functioning and prices might just spiral higher and higher.

 

I thought of another solution.

 

The rebate of your COE will be the average of the current COE price and the price you bought the COE. Does this make sense? When COE rises, it will encourage people to deregister their cars and take public transport and thus increase the supply of COE. When prices fall, the urge to sell 3 year old cars to get lower COE is less as you get less on rebate.

 

I think this is a win-win situation. People still can sell their COEs when they are in financial woes, etc.

 

What do you guys think??? I really think it will help our COE problem now.

Edited December 26, 2012 by Wind30

[Galantspeedz]

first and foremost, what do you think is the problem with COE?

[Cerano]

I tot long long time ago, I already calculated the affordable car price for median population is $150k. We are not there yet.

 

How can a family earning 5k own a car comfortably? I dont quite see how...

[Throttle2]

Please lah. You do that and those struggling salesmen or service engineers crisscrossing the island on a daily basis to service their clients will kena. Then they will whine that the system penalizes them for earning a living.

 

And what's the point of owning a car if you use it sparingly? It sits in your carpark depreciating away, just so you can call yourself a car owner, but you can't afford to drive it around. That's not a solution that's better than the current system. Its just an alternative.

 

sounds like weekend platers ?

[RadX]

sounds like weekend platers ?

 

 

basket...unfair., you go scot free and no price for yoru head for saying this...if i say,i become like wikileaks bugger [laugh]

[Throttle2]

basket...unfair., you go scot free and no price for yoru head for saying this...if i say,i become like wikileaks bugger [laugh]

 

 

who ask you so rich and moderator?vv

[Xxadidasxx]

They wan

Sux us dry dry

[Twnll]

One household - one car.

[Vextan]

first and foremost, what do you think is the problem with COE?

I think the main grouse of many people is that coe has become too expensive. Correct ? When coe price was low, no one was complaining of congestion or affordability.

[Galantspeedz]

I think the main grouse of many people is that coe has become too expensive. Correct ? When coe price was low, no one was complaining of congestion or affordability.

 

yes and most of the ideas is how to lower the price of the coe which is not the crux of the problem

[Ben5266]

How can a family earning 5k own a car comfortably? I dont quite see how...

50% of Singapore household income is $8400. This is 2011 number from singstat.

 

5k can own car at 60k.

8.5k can own 100k car.

Can or not, I am not sure. Someone mention before, rule of thumb is 12 month of our salary.

 

 

[Vextan]

I also find it perplexing how the coe price can rise to so high and be sustained at this level, given the disparity between the middle income group's purchasing power and the coe price. i understand in singapore there are a significant group of high earners, but surely they dont buy new cars every few months right ? Or is the economy really so rosy judging from the strong demand ?

 

I am not going to suggest any tweak to the coe but my simple wish is that the revenue from coe is channeled to subsidising \improving public transport. this will then at least provide a viable option from the high cost of car ownership.

Edited December 26, 2012 by Vextan

[Camrycamry]

3 ways for COE to drop,

 

1) close-bidding, pay-what-you-bid

2) back to 70% loan

3) cannot scrap COE within 10 years

 

BUT WAIT LONG LONG, YOU THINK GOVT WILL DO THIS TO COLLECT LESS $$$ :D

[Wind30]

first and foremost, what do you think is the problem with COE?

 

the main problem is that the COE prices fluctuates way too much. The market for COE is not implemented correctly. High prices reduces demand and reduces supply which is wrong. In such a scenario, COE prices tend to shoot up too fast.

 

I am looking for a COE price with less fluctuations throughout the years, not necessarily a cheaper COE. I think EVERYONE can agree that it is stupid and wrong to have a few years of $10k COE and a few years of $80k COE.

[Cerano]

50% of Singapore household income is $8400. This is 2011 number from singstat.

 

5k can own car at 60k.

8.5k can own 100k car.

Can or not, I am not sure. Someone mention before, rule of thumb is 12 month of our salary.

 

In this market no new car can be obtained for less than 89k.

Also household income as mentioned takes into account other members eg. Kids working who are not very likely to contribute to the car.

 

 

 

[Wind30]

I also find it perplexing how the coe price can rise to so high and be sustained at this level, given the disparity between the middle income group's purchasing power and the coe price. i understand in singapore there are a significant group of high earners, but surely they dont buy new cars every few months right ? Or is the economy really so rosy judging from the strong demand ?

 

I am not going to suggest any tweak to the coe but my simple wish is that the revenue from coe is channeled to subsidising \improving public transport. this will then at least provide a viable option from the high cost of car ownership.

 

don't you read my post?

 

There is just zero supply coming on board this period of time because in 2002 the COE prices was really high. EVERYONE who bought a COE in 2002 has sold of their COE in 2005-2006 when the prices dropped a lot.

 

Do you know how COE quota is set these days?