Why COE Concept will not work anymore in Singapore
Any smart person will know, once you bid for the COE price of a car, it is valid for use for 10 years, but nowadays nobody is stupid enough to use it for 10 years, once the warranty expires in 3 years time, everyone will sell away their cars to lock their loses for 3 years, and make the Government pay back the rebates of 7 years with OMV value, and start the bidding process all over again. if everybody does the same, COE prices will artificially drop instead of increase, only those who cannot afford will buy cars older than 3 years where the COE has been locked, what would you predict the price of COE will be when everybody does the same? There will be an increase of parallel importers who will export these cars after 3 years similar to Japan’s used car market, and the present COE system maybe replaced by a usage based system in the near future. I based my experience from owning more than 10 cars over a period of more than 30 years where the high costs of maintenance and spare parts is even more expensive than the COE price, I have refurblished more than half of my cars and it is really an unnecessary waste of money.
– Contributed by Oogle.