COE refinements to be finalised in next few weeks

[Darthrevan]

 

Tweaks to the Certificate of Entitlement (COE) system will be finalised in the coming weeks, said the Land Transport Authority (LTA) as it wrapped up its public consultation exercise on Monday.

 

LTA said it has received diverse views from over 3,700 people who gave feedback.

 

Most of them agreed that the current way the COEs are categorised -- based on engine capacity -- should be reviewed.

 

In recent years, luxury car models have become more common in Category A, which is meant for the mass market or small cars of not more than 1,600cc each.

 

To tackle this, the transport minister in May called for ideas on how the system could be refined.

 

Most felt that categorisation should be based on the Open Market Value (OMV) of the car.

 

More than 60 percent of those who took part in LTA's online survey felt that Category A should be set aside for cars with OMV of not more than S$20,000.

 

Noel Davenash, a participant, said: "The best way to choose mass market would be through the cost of the car, and that's really all that boils down to.

 

"Most people who buy mass market cars want something that is a bit cheaper, versus someone who wants something a bit more prestigious or luxurious."

 

But there are those who feel that the OMV of a model can fluctuate due to variations in exchange rates and car specifications. This means the same model could fall into different COE categories at different times.

 

Some voiced concern that the criteria, such as OMV and engine power, could be circumvented.

 

Others suggested keeping engine capacity as a criterion, but factoring in other criteria such as engine power. They felt this will be good as engine power can be reviewed every few years to keep pace with technological developments.

 

A majority of those surveyed also supported the proposal to levy a surcharge on multiple-car owners.

 

But LTA said there was a lack of consensus on whether the levy should be imposed on an individual or a household -- and whether it should be a one-off or a recurring surcharge.

 

There were also concerns that a surcharge could penalise bigger households, and that this could be easily circumvented.

 

Many also wanted a pay-as-you-bid system for COEs, where every successful bidder pays exactly what he or she has bid.

 

Some believe this will result in more conservative bidding, and therefore lower COE prices.

 

But experts said this would not be as efficient. They argued that the current system, where all successful bidders pay the lowest market-clearing price results in the most efficient way and that bid prices are open to public scrutiny.

 

Professor Ng Yew Kwang, from the Nanyang Technological University's Economics Division, said: "Under the pay-as-you-bid (system), everyone must underbid, and different people have different psychology.

 

"Some underbid by a lot, and some underbid by less. Then the item may go to the wrong person, to the person who may not value it very highly."

 

There was also a strong perception that motor dealers are driving up COE premiums and should be banned from bidding, but some said this would be more inconvenient for buyers.

 

But others felt this would not help, as long as there is a strong demand for the limited supply of COEs.

 

Some felt dealers typically commit to car purchase agreements to absorb the additional cost should COE prices move up higher than expected and thus have every incentive to bid low once a purchase agreement is signed.

 

Some also felt that such a ban could be easily circumvented by buyers who may ask dealers to bid in their name.

 

A good number of buyers also prefer to have the convenience of dealers bidding for them.

 

LTA said whatever its decisions on the COE refinements, the industry and buyers will be given ample time to adjust.

 

Source: http://www.channelnewsasia.com/news/singap...-be/790958.html

[Gaolow]

So is COE helping ppl to own car to club car population???

I very confuse

Edited August 26, 2013 by Gaolow

[Gendut]

All these idiot talking in circles......

 

The easiest way is to vote out PAP.

[Elfenstar]

Tweaks to the Certificate of Entitlement (COE) system will be finalised in the coming weeks, said the Land Transport Authority (LTA) as it wrapped up its public consultation exercise on Monday.

 

LTA said it has received diverse views from over 3,700 people who gave feedback.

 

Most of them agreed that the current way the COEs are categorised -- based on engine capacity -- should be reviewed.

 

In recent years, luxury car models have become more common in Category A, which is meant for the mass market or small cars of not more than 1,600cc each.

 

To tackle this, the transport minister in May called for ideas on how the system could be refined.

 

Most felt that categorisation should be based on the Open Market Value (OMV) of the car.

 

More than 60 percent of those who took part in LTA's online survey felt that Category A should be set aside for cars with OMV of not more than S$20,000.

 

Noel Davenash, a participant, said: "The best way to choose mass market would be through the cost of the car, and that's really all that boils down to.

 

"Most people who buy mass market cars want something that is a bit cheaper, versus someone who wants something a bit more prestigious or luxurious."

 

But there are those who feel that the OMV of a model can fluctuate due to variations in exchange rates and car specifications. This means the same model could fall into different COE categories at different times.

 

Some voiced concern that the criteria, such as OMV and engine power, could be circumvented.

 

Others suggested keeping engine capacity as a criterion, but factoring in other criteria such as engine power. They felt this will be good as engine power can be reviewed every few years to keep pace with technological developments.

 

A majority of those surveyed also supported the proposal to levy a surcharge on multiple-car owners.

 

But LTA said there was a lack of consensus on whether the levy should be imposed on an individual or a household -- and whether it should be a one-off or a recurring surcharge.

 

There were also concerns that a surcharge could penalise bigger households, and that this could be easily circumvented.

 

Many also wanted a pay-as-you-bid system for COEs, where every successful bidder pays exactly what he or she has bid.

 

Some believe this will result in more conservative bidding, and therefore lower COE prices.

 

But experts said this would not be as efficient. They argued that the current system, where all successful bidders pay the lowest market-clearing price results in the most efficient way and that bid prices are open to public scrutiny.

 

Professor Ng Yew Kwang, from the Nanyang Technological University's Economics Division, said: "Under the pay-as-you-bid (system), everyone must underbid, and different people have different psychology.

 

"Some underbid by a lot, and some underbid by less. Then the item may go to the wrong person, to the person who may not value it very highly."

 

There was also a strong perception that motor dealers are driving up COE premiums and should be banned from bidding, but some said this would be more inconvenient for buyers.

 

But others felt this would not help, as long as there is a strong demand for the limited supply of COEs.

 

Some felt dealers typically commit to car purchase agreements to absorb the additional cost should COE prices move up higher than expected and thus have every incentive to bid low once a purchase agreement is signed.

 

Some also felt that such a ban could be easily circumvented by buyers who may ask dealers to bid in their name.

 

A good number of buyers also prefer to have the convenience of dealers bidding for them.

 

LTA said whatever its decisions on the COE refinements, the industry and buyers will be given ample time to adjust.

 

Source: http://www.channelnewsasia.com/news/singap...-be/790958.html

 

I think they missed the "it" when they quoted me

 

I tried to weasel some info from the LTA folks before the event started. From the sounds of it, I think they're veering towards an OMV based Cat A and Cat B (maybe OMV of 20k and below for cat A). They may add in power or eco friendliness, but they haven't finalised what they're going to do. I also suspect they may ramp up the supply of cat A at the expense of cat B so that there will be a noticeable price difference.

 

For bidding, the academics think that the current bidding system should remain as it's the most efficient. In contrast if we bid on our own and pay what we bid (pay as you bid), they said that for the alternative, some would pay less, but most would pay equal or more. Some suggested a single COE category (to be even more efficient) and let the govt as a whole handle the social aspects, so I had to said that most people don't care about how efficient the system is, etc. Most people want cars that they can afford. LTA more or less agreed by saying that Cat A was always designed for cars in the mass market.

 

From the dealer side, BM, Wearnes, and VAG spoke up. I was very impressed by BM. He said he would be happier if people brought in their own COE as there's less risk to them, and every deal is pretty much confirmed as they don't have to wait for COE results either. However most people don't want the hassle of having to bid and would rather the choice of bidding to be made by the consumer than by rules. If the Cat A OMV is too low, VAG's MD said that they would have to bring specced down cars and thus we won't be able to enjoy many features. I wasn't surprised as VAGs cars are pretty much in the "premium" mass market segment and a lot of their cars would be pushed into cat B if the OMV ceiling for cat A is too low.

 

I was also impressed by the gentleman from Bosch in relation to multiple car ownership. He suggested that we use a system like what they have in Switzerland and Germany. A person can own multiple cars. He/she has to pay regular tax, insurance etc annually but they are issued only a set of licence plates and thus the cars and only be used one at a time. The only issue with this is that if taken up, only LTA can issue plates, so no cheap replacement plates for us.

 

[Ahbengdriver]

All these idiot talking in circles......

 

The easiest way is to vote out PAP.

 

Exactly.

 

vote them out and everything will come back down or disappear - COE ERP ARF.

 

All this taichi strokes are useless.

 

6.9mio my arse.

Edited August 26, 2013 by Ahbengdriver

[Duckduck]

3700 out of a population of 5.6M gave feedback... oh great sample <1% of population to form policies involving mult million $$$...

[SLSAMG88]

All these idiot talking in circles......

 

The easiest way is to vote out PAP.

So what do you want?

 

Cheap COE? Everyone to have a car? Then we will have Beijing/Jakarta/Bangkok/Manila/KL type jams on every street in Singapore.

 

Is that what you want?

[Joseph22]

Exactly.

 

vote them out and everything will come back down or disappear - COE ERP ARF.

 

All this taichi strokes are useless.

 

6.9mio my arse.

Yeah everything come down and disappear. Everyone buy car every one get to drive.

Huat ah more good year...

Wait how to drive everywhere jam.

[Joseph22]

3700 out of a population of 5.6M gave feedback... oh great sample <1% of population to form policies involving mult million $$$...

Can suggest how we can have constructive meeting where 3.2 million participate???

Will be great if u can suggest a good method.

[Goldenvodka]

What if CATA is restricted to cars with OMV lower than $10000

That is the truly BNB car

[Calford]

I don't understand why cheap COE will lead to everyone to have a car?

 

Number of COE is fixed... $1 vs 1 million...

[SLSAMG88]

I don't understand why cheap COE will lead to everyone to have a car?

 

Number of COE is fixed... $1 vs 1 million...

Aha...so there we have it...market forces dictating the price versus government policy...an age old economics debate...

 

I, for one, do not see COE prices coming down - not while the government wants a positive population growth rate - I would like it to come down, but just can't see it...

[Elfenstar]

What if CATA is restricted to cars with OMV lower than $10000

That is the truly BNB car

Interesting figure considering that the car with the lowest OMV last year was the Vios at $11k Might as well have just one category instead since there will be no cars in cat A

[Elfenstar]

Double post. Sorry!!!

Edited August 26, 2013 by Elfenstar

[Maseratigood]

I don't understand why cheap COE will lead to everyone to have a car?

 

Number of COE is fixed... $1 vs 1 million...

Expensive COEs --------------> car ownerships spread amongst the richer group of buyers ("exclusive" / narrow distribution, and the group can even own more than one car per person/family)

Less expensive COEs --------> car ownerships spread amongst both rich and less rich groups ("inclusive" / broad distribution)

 

In the former, we need a more extensive and reliable public transport system to move those who dont own cars from A to B

 

In either case: same number of cars on the roads (main purpose of having COEs quotas)

[Maseratigood]

So what do you want?

 

Cheap COE? Everyone to have a car? Then we will have Beijing/Jakarta/Bangkok/Manila/KL type jams on every street in Singapore.

 

Is that what you want?

not so drastic/drama lah, just a few things will do:

 

- pay as you bid

- buyers, not dealers, do the bidding :D

[Maseratigood]

3700 out of a population of 5.6M gave feedback... oh great sample <1% of population to form policies involving mult million $$$...

feedbacks are eye wash sometimes

 

why not list the options, and do a referandum!!! everyone has a say, majority win?

[Elfenstar]

Expensive COEs --------------> car ownerships spread amongst the richer group of buyers ("exclusive" / narrow distribution, and the group can even own more than one car per person/family)

Less expensive COEs --------> car ownerships spread amongst both rich and less rich groups ("inclusive" / broad distribution)

 

In the former, we need a more extensive and reliable public transport system to move those who dont own cars from A to B

 

In either case: same number of cars on the roads (main purpose of having COEs quotas)

 

That's what they're doing more or less. Thats why they always had Cat A and Cat B rather than just a single category. They're refining the categories because they realise that more and more luxury cars are and will be going into a Cat A based on engine capacity.