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Bidding of Motorcar COE

According to the news, the validity of motorcycle COEs has been reduced from 6 to 3 months and this will take effect almost immediately, in the next bidding exercise.

This validity reduction coupled with the increase in bid deposit of some 2.4 times shows that the cost of living is indeed going up and motorcyclists who are in need of a bike to earn a living (think Grab delivery) are not spared this high cost of living either.

However, in announcing this new bid deposit, LTA remains silent on the motorcar COE which is seeing runaway COE prices. S$98,000 for a piece of paper in the ‘Open Category’. Something is amiss.

Inspite of the economic slowdown worldwide due to the pandemic and higher petrol prices, we are still seeing the escalating motorcar COE prices getting even higher with each successive bid.

It is therefore timely for LTA to similarly consider reducing the motorcar COE validity to 3 months in-line with that of motorcycles in the next bidding exercise. Three months is sufficient time for a genuine bidder to buy and register a new car.

The 3-month period will also see less COEs ‘floating’ around in the motorcar industry looking to park (no pun intended) the piece of paper.

To address this runaway COE prices for motorcars, LTA should only allow bidding by individual car buyers or in the names of individuals when bidding by proxy.

Bulk bidding by traders should be disallowed. It is inevitable that the the price of COEs will remain sky high if bulk bidding is allowed as the cost of a COE is eventually passed to the car buyer.

To further curb the runaway prices for COEs, the deposit for motorcar COE should be increased much larger than 2.4 times compared to motorcycles to meet the higher prices of motorcars.

At the same time, motorcar loans should be confined strictly to the cost of buying a car based on one’s income including credit card and housing debts.

The cost of the COE should be decoupled from the total car package as otherwise many new car owners may be overcommitting their expenses on cars. In other words, no loans should be given to COEs.

LTA should speedily implement this recommendation as there may be too many unpaid cars on the road with huge financial debts.

 

Gilbert HK Tan

 

 

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READER COMMENTS BELOW

13 Responses to “Bidding of Motorcar COE”

  • SINGAROAR:

    COE should be purchased prior to buying of vehicles. There should not be loans available for COE. TDR must be applied to any loan. Gilbert Tan has raised valid concerns to protect the consumer. Why was this not raised by the MPs?

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  • More $, more $:

    COE is too cheap. Gov should set a minimum price of $100,000. More money raised can be used to “help the poor”.

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  • Smart Nation:

    COE should be scrapped as it is not an equitable system. The high-earners and rich can afford to own a car, perhaps even two or three cars in a household but not the middle or low income family which may have a genuine need for a car.

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  • Rough Rider:

    COE supposed to be a deterent. But having face more important.

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  • xoxo:

    COE is just another $cheme to $uck more money from ordinary citizens.
    Controlling vehicle ownerships via MULTIPLE $CHEMES FROM COE TO PARF TO ERP PROVES THE GREED OF THE GOVT MORE THAN TRULY REGULATING OWNERSHIP.

    IN FACT,to be fair,every sgporean household should be entitled ONE FREE NON-TRANSFERABLE COE SHOULD THEY WANT TO AND CAN AFFORD A CAR.

    SECOND-CAR ONWARDS SHOULD HAS A FLOOR OF A
    DETERRENT NATURE LIKE,SAY,$250K ONWARDS DEPENDING ON THE TYPES OF VEHICLES,CHARGING MORE FOR LUXURY CARS?
    WHY DISADVANTAGE ORDINARY CITIZENS WHO HAVE AGED PARENTS N INFANTS WHEN RICH MAN’S TEEN-AGED KIDS CAN ZIP RECKLESSLY IN SPORTY LOUD-ROARING CARS THAT CAUSE HUNDREDS OF THOUSANDS DOLLARS ON OUR ROADS?

    WHERE IS EQUITY?

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  • Ah Ha:

    Hey, think about it, go car lite, get an ebike! No COE, no insurance, no road tax, go where you want, pedestrian paths, sidewalks, foot paths, void decks, around and in some cases through malls, markets and MRT entries and exits, no parking regulations (or none observed) no enforcement of the few existing rules like dismount and push, never have I seen it obeyed and best of all NO speed limits! Many cases of ebikes going faster on pedestrian ways than the parallel traffic flow then through zebra crossings to beat the traffic lights, The parks are a playground with you to use as you please, where I live our beautiful town park is used as a throughfare, even has signs to be careful of bikes, (no speed limit signs) the young parents are now staying away as are the seniors in wheelchairs for fear of getting hit, the park is yours, basically no rules and best of all no fees! If you injure someone well haven’t seen many bad results, penalties very light. Get with it go green, get an ebike! Be free!

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  • illiterate pap voters:

    Smart Nation:
    COE should be scrapped as it is not an equitable system. The high-earners and rich can afford to own a car, perhaps even two or three cars in a household but not the middle or low income family which may have a genuine need for a car.

    Bro, wrong approach.

    The current problem is due to zero car growth which pap cites as due to need land to build more home units. But island natural population is 3m+, year in year out. Yet it is having 6.9m mouths on the island, meaning 3.9m additional mouths.

    Island is very small. We can house mouths or house aliens.

    We have 3m+ local born. The rest, 3.9m, are aliens with over 500k PRs mostly from Msia.

    Remove the 3.9m aliens, voila, where got problem.

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  • Smart Nation:

    illiterate pap voters: Bro, wrong approach.

    The current problem is due to zero car growth which pap cites as due to need land to build more home units. But island natural population is 3m+, year in year out. Yet it is having 6.9m mouths on the island, meaning 3.9m additional mouths.

    Island is very small. We can house mouths or house aliens.

    We have 3m+ local born. The rest, 3.9m, are aliens with over 500k PRs mostly from Msia.

    Remove the 3.9m aliens, voila, where got problem.

    Increase in population and zero-car growth lead to increase in demand over supply and of COE prices. It means that low and middle income earners who need a family car are priced out. Do away with COE. Instead, prioritize car ownership on a need basis – to families with two children or more, and limit one car to a household. This will motivate couples to have more children! I know of a couple with 4 young kids. They definitley need a 6-seater because they can’t all fit into a taxi; but how can they afford one based on a single income at current car prices? But I doubt the govt will slaughter its cash cow or the goose that lays the golden egg.

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  • Harder Truths:

    Alamak – worry worry worry. Everything in $G is a worry. Even fly kite must buy kite insurance. $inkies worry die die about small things but can take untested drug to die faster no problem.

    Must wash hand with soap and water or germ will kill you. Must wear mask or germ will kill you more. But jab jab jab – all the germ inside you killing you slowly still ok.

    Education has made $inkies stupid. Stupid people die faster.

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  • Dave:

    A small gesture to reduce the validity of the TCOE for motorcycles to 3 months and raise the deposit to $800 means nothing as today bid result shows the bid stands at $10,501 for motorcycles.This LTA has been conspiring with the motorcycles dealers to rip off the poor masses of majority low income riders going on for some time. A continuation to perpetuate the slavery of the poor is crystal clear. Ministers giving flimsy excuses in order to rob the poor and fill the coffers of the establishment is evident beyond reasonable doubt.

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  • SINGAROAR:

    @Dave:

    All profits made by the PAP are from the resident population in Singapore. Easy, just print a piece of paper, call it COE and price it at any level. Those who are wealthy will pay as it will not dent their pockets but to those who need vehicles for their jobs, it is unfair and will cause them to be in debt. A govt. that is in governance will try to address the needs of the various segments of the community. However we have generals being deployed in the civil service so it can only be enforcement.

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  • Spineless Sinkie Syndrome:

    COE is a rigged market that is manipulated by you-know-who-lah.

    It is an easier scam compared to say your typical stock market – which has many different companies & products. Our COE market has only 5 basic products (Cat A/B/C/ E) and when Demand is low, they reduce the Supply quota such that prices are maintained or even move up slightly.

    Even when economy had crash with little demand from private car owners like during start of the pandemic, where most are working from home without need to drive often, then they simply STOP the COE bidding like what happened back in Apr-Jun 2020, remember? LOL.

    https://www.straitstimes.com/singapore/transport/coe-bidding-suspended-in-april-questions-remain

    Of course, when some demand recovers now, it will spike up. In other words, PAPies are the ones who are always ratcheting the prices up, because whenever it drops drastically, they will prop it up (via artificially reducing quota supply and/or suspending all bidding), but conversely when it rises, they say “let market forces work out” because it fattens their wallets mah. Lol.

    https://www.todayonline.com/singapore/market-rule-coe-market-now-despite-fierce-bidding

    Heads they win, tails you lose. Sinkies just happily continue “Pay And Pay” lor. Lol.

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  • Walk lah:

    OK lah…COE higher better for the country.
    Walk lah…more healthy,
    Can reduce health budget some more…
    Don’t complain OK ?

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