Garlic 1st Gear March 30, 2008 Share March 30, 2008 Source: http://www.channelnewsasia.com/stories/sin.../338180/1/.html By Asha Popatlal, Channel NewsAsia | Posted: 30 March 2008 1638 hrs SINGAPORE: The Land Transport Authority (LTA) is considering giving cash instead of credits when one gives up his or her car to persuade more people to opt for public transport. Transport Minister Raymond Lim said he has asked LTA to work with the Finance Ministry to see if Certificate of Entitlement (COE) and Additional Registration Fee (ARF) rebates can be given in cash when motorists decide to give up their cars. This study should take about four to six months. A whole slew of measures was announced from late January on improving bus and rail services to get more people to use public transport. A more extensive ERP system was also set up as part of the deal to keep traffic smooth. But what kind of push do people actually need to give up their cars? One idea that has been tossed about and was recently brought up by MP Inderjit Singh during the Budget debate is to give cash incentives. The current situation is that when a motorist gives up his or her car, ARF and COE rebates are given in terms of credits. In order not to lose out, motorists usually end up using these credits to purchase another car. Many people have given the feedback that if these rebates are given to them in cash, it would be more of an incentive for them not to buy another car. But by that same token, motorists could ↡ Advertisement Link to post Share on other sites More sharing options...
Wt_know Supersonic March 30, 2008 Share March 30, 2008 (edited) they should have given cash rebate long long time ago. i really don't understand why that we pay hard earned cash $$$ for COE and ARF but when you sell the car, the return is a rebate certificate to buy the next car. what kind of logic is this that comes from the million dollar elites. i buy car, i pay $$$. i sell car, i should receive $$$. whether i buy the next car or not is secondary. can someone englighthen me what is the problem RETURN the money that we've paid for COE and ARF Edited March 30, 2008 by Wt_know Link to post Share on other sites More sharing options...
Dirtrider_ak Neutral Newbie March 30, 2008 Share March 30, 2008 (edited) I agree when they refund the money I have an option. now you don't have an option what study are they doing for the next 6 mths? To see how much money they are losing? Chey waste of our resources again. think civil servants work for free ahh also our tax ... which is also our money .... haii Edited March 30, 2008 by Dirtrider_ak Link to post Share on other sites More sharing options...
Vyap Clutched March 30, 2008 Share March 30, 2008 second that, we should be paid interest as too! after all, it's our $$$, we incurred interest as part of car installment rite? Link to post Share on other sites More sharing options...
Wt_know Supersonic March 30, 2008 Share March 30, 2008 (edited) i don't need the interest. i just want a "fair" deal. i pay you $$ and you pay me $$ not a paper Edited March 30, 2008 by Wt_know Link to post Share on other sites More sharing options...
Dirtrider_ak Neutral Newbie March 30, 2008 Share March 30, 2008 I guess we are like the MIW ... max out our investment. I say they shld refund it. Our money. Link to post Share on other sites More sharing options...
Pioneer 4th Gear March 30, 2008 Share March 30, 2008 (edited) The way you sound.. Might as well ask LTA to give those drivers a unlimited ride ezilink card, and tax rebate for not driving, give you a discount card for taxi, priority booking for taxi too.. Dun give you, you complain Give you, you say not enough Give enough, you say you want more Edited March 30, 2008 by Pioneer Link to post Share on other sites More sharing options...
Albeniz Turbocharged March 30, 2008 Share March 30, 2008 Right, we paid cash and in the end we could only get back a piece of paper. We have been 拿米换蕃薯. And yet they still need to "seriously consider this new option". Link to post Share on other sites More sharing options...
Albeniz Turbocharged March 30, 2008 Share March 30, 2008 When I first bought my car in 1997, I thought I could get back a lump sum of money (CASH), when I scrap my car at its 10th birthday. I was in for a rude shock then. Link to post Share on other sites More sharing options...
Nhyone 4th Gear March 30, 2008 Share March 30, 2008 Giving cash makes it even more obvious why ARF/COE doesn't work as well as it could have. You pay ARF that is 100% of OMV (as of March 2008). You get back 75% of it within 5 years. That means you are paying only 25%, or 5% of OMV per year. It used to be even better until they tweaked the scheme in 2002. As for COE, you're paying 10% per year. Because you only pay for the portion you use (which is fair), it doesn't penalize you if you decide to change your car early. So, $50k COE is no deterrent, as long as you can afford $5k/year for 3 years, say. Once LTA gives you cash back, you should wonder why you need to borrow to pay them a lump sum upfront, then get back part of it at the end. Are you lending money to them? Link to post Share on other sites More sharing options...
Sosaria Turbocharged March 30, 2008 Share March 30, 2008 I think it's a good development in the direction of encouraging people to give up their cars. Many people keep on renewing - buying new cars - just because it's the only way to use the credits. Once they get cash, they might consider stopping this vicious cycle without incurring too much losses. But I find the policies confusing though. On the one hand, lower car ownership taxes to encourage people to buy cars (in the hope of scoring even more $ through road pricing and other usage taxes) - now here comes another initiative to get people to give up car ownership... Hmmm... maybe the authorities and ministries, each have their own KPIs or interests to uphold; who will win? Link to post Share on other sites More sharing options...
Dirtrider_ak Neutral Newbie March 30, 2008 Share March 30, 2008 (edited) yours is interesting the KPI is $?? LOL Edited March 30, 2008 by Dirtrider_ak Link to post Share on other sites More sharing options...
Schneider79 Clutched March 30, 2008 Share March 30, 2008 Its a good move if the campaign is approved. But this scheme is good for those people who had fully paid the vehicle in full. Those people who are still under financing and in negative will not benefit from it. Link to post Share on other sites More sharing options...
Ken1898 1st Gear March 30, 2008 Share March 30, 2008 (edited) I doubt most ppl will give up their cars.. Edited March 30, 2008 by Ken1898 Link to post Share on other sites More sharing options...
Seaweed 1st Gear March 30, 2008 Share March 30, 2008 it will create another job....agent will come to help settle the scrap and claim back money.... Link to post Share on other sites More sharing options...
Kelpie 2nd Gear March 30, 2008 Share March 30, 2008 Aiya, talk so much, get the ministers to give up their cars and take public transports to lead by example. Regards, Link to post Share on other sites More sharing options...
Tigershark1976 Turbocharged March 30, 2008 Share March 30, 2008 dun think it will work, there are a lot of car owners that i know can only breakeven after 7th years (10 yrs, 100% loan). Currently, most if the car on the road are SG* plate.... even with the rebate, dun think it can attract plenty of car owner to sell their rides.... cos they will have to fork out plenty of $$$$... Link to post Share on other sites More sharing options...
Wt_know Supersonic March 30, 2008 Share March 30, 2008 (edited) i don't see the current arrangement produce any deterrent to own car. Giving cash makes it even more obvious why ARF/COE doesn't work as well as it could have. You pay ARF that is 100% of OMV (as of March 2008). You get back 75% of it within 5 years. That means you are paying only 25%, or 5% of OMV per year. It used to be even better until they tweaked the scheme in 2002. As for COE, you're paying 10% per year. Because you only pay for the portion you use (which is fair), it doesn't penalize you if you decide to change your car early. So, $50k COE is no deterrent, as long as you can afford $5k/year for 3 years, say. Once LTA gives you cash back, you should wonder why you need to borrow to pay them a lump sum upfront, then get back part of it at the end. Are you lending money to them? Edited March 30, 2008 by Wt_know ↡ Advertisement Link to post Share on other sites More sharing options...
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