LTA to adjust COE quota calculation again to reduce supply volatility

[Mkl22]

 

COE is 33years old... LTA still cannot get its act together. adjusting and adjusting...

a thermostat is cheaper and faster....

 

https://www.channelnewsasia.com/singapore/lta-adjust-coe-quota-calculation-reduce-supply-volatility-3219981

 

SINGAPORE: The Land Transport Authority (LTA) announced on Friday (Jan 20) that it would be adjusting the method for computing Certificate of Entitlement (COE) quota available for bidding.

The adjustment - six months after a similar move last year - is to "further reduce the quarter-on-quarter volatility of COE supply", said LTA.

 

With effect from Feb 1, the number of COEs available for bidding in each quarter will be the rolling average of the number of vehicles deregistered over the previous four quarters, instead of two.

For example, the number of COEs for the upcoming quarter of February to April will be 25 per cent of the number of vehicles deregistered from January 2022 to December 2022.

The number of COEs for the next quarter - May to July - will be 25 per cent of the number of vehicles deregistered from April 2022 to March 2023.

The start of each new COE quota bidding period will continue to be one month after the close of each calendar quarter.

COE QUOTA FOR FEBRUARY TO APRIL

The COE quota for February to April will be 9,437. This is a 3.4 per cent increase from the 9,128 COEs in the previous quarter.

 

Bidding under the upcoming quota will start on Feb 6, said LTA .

Under the previous method, the quota for the February to April period would have been a lower figure of 8,695, a difference of 7.9 per cent or 742 COEs.

The next quota announcement for the bidding period of May to July will be made in April.

After the adjustment in calculation method last year, experts told CNA that COE price peaks would not be as high as they would be under the current counting method. 

However, COE price troughs will also not be as low as they would have been. 

 

Edited January 20, 2023 by Mkl22

[Inlinefour]

it's a goose laying gold eggs

 

additional tax which got nothing to do with congestion control 🙈🙉🙊

[Kopites]

4 minutes ago, Inlinefour said:

it's a goose laying gold eggs

 

additional tax which got nothing to do with congestion control 🙈🙉🙊

More so like this image. 

Edited January 20, 2023 by Kopites

[Volvobrick]

Soon it will be rolling 2 year average to prevent old car owners to take advantage of low premiums to renew COE!

 

[Daniu82]

Adjust to benefit the government than benefit us. What’s the point? Waste time only. 

[Blueray]

still 0% growth right ?

if 0% growth adjust here adjust there will not make a big difference lor.

Edited January 20, 2023 by Blueray

[Lala81]

My car just turned 8 years old yesterday. Dunno if can see 50k COE in 2025.

 

[Fitvip]

It is trying its best to adjust so that the golden goose will lay double yolk golden eggs!👎

[inlinesix]

Constant adjustment is good especially when it is no longer applicable.

Change is constant.

[Voodooman]

3 minutes ago, inlinesix said:

Constant adjustment is good especially when it is no longer applicable.

Change is constant.

They should have intervened years ago but i am not really complaining. 

[Volvobrick]

5 minutes ago, Voodooman said:

They should have intervened years ago but i am not really complaining. 

Me too. At least for the next 7 year or so. 

[Benarsenal]

Adjust here adjust there, in the end also same. LPPL.

[t0y0ta]

Mathematically, because we will soon be entering period of high COE quantity(starting from 2024, as 2015 was the start of exponential COE quota increase till 2019), this extended  lagging calculation simply prevents COE prices from dropping faster than they should.

Scholars are really scholars... good in math.. really know how to benefit govt coffers

[Silverkris]

26 minutes ago, Lala81 said:

My car just turned 8 years old yesterday. Dunno if can see 50k COE in 2025.

 

If judging by their current calculation method, it will never happen.

They are "borrowing" additional COE from the future, which means the future prices will be kept high as well.

[Mancypher]

36 minutes ago, Lala81 said:

My car just turned 8 years old yesterday. Dunno if can see 50k COE in 2025.

 

Mine is due to scrap in 2024 June. Dunno if can even change to new or buy used PARF/COE car.

[Mustank]

1) who ownself willing go inside the milking station to get milked one? Some even: shut up and take my money nao!!! 
 

2) who ownself give them mandate to adjust quota one? 
 

When see the new car, heart itchy, pocket itchy, ownself slavery ownself 

[Rayleigh]

I propose LTA to start the averaging from Day 1 of COE. Sure can achieve the Swee Swee most ideal constant. 🤣🤣🤣

[Nf0rc3r]

Basically they are trying to minimize the impact of short term. Their ultimate plan is to spread out the COE's available so that it's the same every year instead of current cycle of high low period.