how to solve COE volatility? Gov doing the pricing

[Vratenza]

Why keep patch work fix a flawed system?

COE that has 20yrs validity and do not allow for COE extensions by end of 20yrs.

Mandatory yearly vehicle inspection on annual basis to keep all cars road worthy.

Anyone who want to keep the car beyond 20yrs have to go onto "classic" car low usage ownership scheme.

 

[Jamesc]

I predict there will be no more lean years when COE is low.

It will be high forever so why worry about swings?

It will just swing from high to higher.

[Ingenius]

11 minutes ago, mikk123 said:

what you say is logical and makes sense. I think government needs to smooth out the numbers, so we won't have high and low years and some drive a car for a few years and selling at even higher price? And curb loan requirement and make sure those who cant afford it don't join the fun when the COE falls and have problem later sustaining it. 

The TDRS and credit check are already in place to ensure affordability.  If a car is selling at say $150,000, one has to be able to pay $60,000 cash downpayment, and credit check will ensure the buyer has disposable income enough to pay monthly.

Edited August 2, 2022 by Ingenius

[Ingenius]

4 hours ago, Wind30 said:

I think the more commonly accepted problem of COE if that the price swings too much until it is like lottery as others would say. So what is the solution.

.....

5) If we sell out, we can take a certain portion of the reserve COE to meet the sudden demand. If the demand is too big, it is by drawing lots to decide allocation. That is why we need to have more frequent COE bidding as you cannot be sure you will be successful. To solve this problem, we can also create a new Cat COE where it is by bidding. If you are time sensitive, you can go there. We also want to adjust the price faster so we don't have a sell out situations often and run out of reserve COEs.

 

Drawing lots will create profiteering.  As long as COE demand is higher than supply and the luck of the draw will earn a profit, people will venture into drawing lots, which in turn will spiral up the price and volatility.

[1fast1]

4 hours ago, Carbon82 said:

My simple proposal is pay what you bid instead of lowest successful bidding price. Another way, which will be unfavorable to the lower end buyer is bid for your own coe, and full cash for the bid (not just $10K when submitting the bid). 

I understand your good intention but your proposal is almost the same as current bidding scheme, and we all know demand will forever outstrip supply, so it would not work as intended. 

A nice simple proposal. I support this. No dealers. 

Bid on your own, pay as you bid, pay in cash. 

It could even be a slogan! 😁

[pengu]

They just need to flatten the curve.

So, in years such as this when there’s a drought, the Govt can release more COE than deregistration. 

So it’s like an IOU.

Then in future, when the cycle return back up, can reduce the number of COE.

 

Essentially, due to this, the total number of cars on road my fluctuate slightly, but I think that’s ok, cause eventually, the total number of cars would be the same.

 

The implementation could be something like total number of cars/10 - avg COE renewal in past 10 years = annual coe available.

[Fitmugen]

Yeah, at the end of the day, car is not a necessity in SG. If cannot afford, there are many options that are almost as convenient.

Save your proposals for the day when there is food shortage. That one I agree, cannot be bidding system and gahmen must step in, if not people will die of hunger!

[Ingenius]

6 minutes ago, mikk123 said:

I understand some dealers have ways to let buyers take 100% loan right? 

That is commercial vehicle.  One has to register a company, submit documents and pass necessary checks, including credit check.  No lender will lend for car buying if one cannot prove he is able to afford it.   It is not so easy.  And the cost and taxes that comes with it makes it not worth while.  But it is there for a reason, like support businesses.

Edited August 2, 2022 by Ingenius

[Freeder]

The Gov should just make it short & simple.. 2 Cat : 1 for car and 1 for motorcycle..

Min bid for cars from 150k onwards..

Good for the economy and current car owners..

[Volvobrick]

52 minutes ago, Vratenza said:

Why keep patch work fix a flawed system?

COE that has 20yrs validity and do not allow for COE extensions by end of 20yrs.

Mandatory yearly vehicle inspection on annual basis to keep all cars road worthy.

Anyone who want to keep the car beyond 20yrs have to go onto "classic" car low usage ownership scheme.

 

I think my car at 20 year old will have 150k km or less mileage, lower than those PHV at 3 year old. So why penalise low mileage owners? COE is to control car number and congestion. Whether it is a 20 year old car or a brand new car, it takes up the same road space.

Want to bring down COE premium? Then make the PHV buyers pay a surcharge of 4 times the COE premium to reflect the much higher usage and contribution to congestion. That will level the playing field.

 

PS when COE is $250K I think I will just buy a few classic cars (use 45 days each year, maybe 3, 4 enough) and treat like rental....

Edited August 2, 2022 by Volvobrick

[Beehive3783]

The intention of COE has always been to be a revenue stream for the coffers. 

Whatever ideas anyone has, none will be taken up UNLESS it promises increased revenue to the coffers.

By cutting COE quota every quarter with unrelenting demand especially from taxis and PHVs, the revenue is literally begging to enter the coffers.

Short and sweet. High demand + low supply = high revenue

Is the above statement clear enough?

[Kklim]

For a start, have a separate category for taxis and PHV vehicles 

[inlinesix]

9 minutes ago, Kklim said:

For a start, have a separate category for taxis and PHV vehicles 

Taxi don’t affect the price. 

[Jamesc]

High COE is putting

back into our reserves.

High COE is good for us.

[Soya]

So many experts here

Tink LTA shld juz get rid of the scholars n get all their answers on MCF......lol

 

[Starry]

I never understood how the COE system works.  I mean I don't even know how the bidding system works.

[Volvobrick]

37 minutes ago, Soya said:

So many experts here

Tink LTA shld juz get rid of the scholars n get all their answers on MCF......lol

 

It will definitely be a better tomorrow!

At least the roads will be better planned and constructed.

 

[Mkl22]

2 hours ago, Beehive3783 said:

The intention of COE has always been to be a revenue stream for the coffers. 

Whatever ideas anyone has, none will be taken up UNLESS it promises increased revenue to the coffers.

By cutting COE quota every quarter with unrelenting demand especially from taxis and PHVs, the revenue is literally begging to enter the coffers.

Short and sweet. High demand + low supply = high revenue

Is the above statement clear enough?

actually in this period, the amount collected from COE isnt high although the price of the coe is.

Edited August 2, 2022 by Mkl22