This is my first post on this forum so pardon me if I break any rules.
I had been following the COE (cat D) for the recent 1 year and after following multiple emails with LTA, I believe the cause for the high COE is due to the dealer being able to bid the COE.
I enquired with LTA and received an email from them on 9th June 2015 with the following statement:
I thus replied with information of my bike. I was issued a COE that the dealer bid 3 month before I purchased my bike. Given their statement, I could only think that the dealer is able to foresee that I will walk into their shop and buy from them, thus they bid a COE on my behalf 3 month before. But they replied on 14th September 2015, after multiple chaser, with the following statement:Bidding for these COE categories must be made in the name of the buyer. Once the COE is obtained, the vehicle has to be registered in the name of the bidder. Therefore, there must be a genuine buyer behind each bid, and the dealers cannot bid for a COE without a buyer and hope to subsequently re-sell the COE to profit from it.
We all know that to own a vehicle, we need the COE. What is stopping the dealer to bid high for the COE when they bear no cost as that will be paid by us, the rider.With regards to your COE query, a COE can only be bidded in the name of the buyer. LTA does not however restrict the subsequent transfer of ownership. For motorcycles, it is a common practice that dealers register the ownership under their name and then transfer the ownership to the new buyer.
I understand that some rider here will be asking why do I think that the dealer will bid such a high price for COE? So let me explain why I thought so.
- Firstly, every dealer/bike shop can have the physical bike, but only the shop that has the COE can sell those bike. COE for bike can be used for all cc, from your scooter to your harley so this COE (cat D) is very versatile. This encourage the dealer to bid for a lot of COE so that they can proceed with the sales.
- Secondly, if you look at the information LTA provided (transparent system), the bid amount distribution varies with huge differences. Search for the information here, Distribution of Successful Bids, and you will be surprised. People are actually bidding >40% of the QP. Do let me know with your replies here that you will bid with an amount of $10k and more for the COE as I don't know of any rider who would does that. BUT!!! The dealer will, as there will always be riders needing a ride and do they have a choice when LTA release the COE bidding result and the dealer just tell you "bo bian".
I know that it is easy for the dealer to do everything for us. And also the joy of getting a new bike within a few days after signing the paper. But we need to wake up as this is really bad for people who need the bike in their course of work. The solution is simple, only allow the dealer to bid with a actual buyer or disallow transfer of the COE for the first 3 month.
Although I can profit from selling my bike, amazing that I can sell my bike now for the same price I paid for it 4 years back, I would rather everyone who wish to ride be able to do so.