COE quota to be determined every 3 months from February 2014

[virux]

Significant cut in COE quota for motorcycles/ 3Month Recycling period

channelnewsasia

 

The Land Transport Authority will move from the six-monthly recycling period for determining the Certificate of Entitlement (COE) quota to a three-monthly period, starting February 2014.

 

SINGAPORE: The Certificate of Entitlement (COE) system has been refined to make it more responsive to de-registrations.

 

The Land Transport Authority (LTA) said that from February, it will announce the COE quotas every three months instead of the current six months.

 

This will enable a more accurate and prompt matching of the number of new COEs to be issued to replace de-registered vehicles, it added.

 

Vehicle de-registration has been rising in recent months as more vehicles reach 10 years of age. This trend is likely to continue until 2016.

 

The Land Transport Authority said the move to reduce the quota period is timely as a three-month recycling period would be more responsive than a six-month system.

 

With the change, the total COE quota for the period from February to April 2014 will be 9,127.

 

This translates to a monthly COE quota of about 3,043 for all categories combined, about five per cent higher compared to the 2,884 monthly quota that would have been allocated under the current system.

 

For example, for Category A, under the three-monthly recycling period, the quota would be 717, compared to 671 if it were under the six-monthly recycling period.

 

For Category B, the new quota would be 701 as opposed to 663.

 

For Category C, it would be 524 for the quarterly recycling quota, but 483 under the present system.

 

For Category D, the new quota would be 719, up from the present system's quota of 703.

 

And for Category E, the new quota would be 382, up from 364 under the present system.

 

However, when the monthly quota for February 2014 to April 2014 is compared with the monthly quota for August 2013 to January 2014, there would be fewer COEs.

 

In total, there were 3,471 COEs from August 2013 to January 2014 compared to the new quota of 3,043.

 

Bidding under the new quota will start with the first open bidding exercise in February.

 

LTA announced the change to motor traders in a meeting on Monday.

 

The last time the COE quota methodology was changed was in 2010. The quota period then was shortened to six months from a year.

 

Industry players have suggested shortening this period further during public consultation sessions with LTA last year.

 

They welcomed the change, saying it is another step in stabilising COE prices.

 

Glenn Tan, president of the Motor Traders Association of Singapore, said: "Hope this is not a piecemeal kind of change, and something that would lead to a future stabilisation of the COE system, and also to make the supply more stable throughout the 10-year cycle, as opposed to a peak and a trough system."

 

Neo Tiam Ting, president of the Singapore Vehicle Traders Association, said: "LTA is trying to cool down the COE (prices) like previously the loan curb.

 

"But if LTA can think of the other way -- if they know that in 2015, 2016 the de-registration will be more, if they can 'borrow' from 2015 and 2016 for this year to use, I think it will be a better way to stabilise the COEs."

 

But motorists have mixed views on the latest tweak to the COE system.

 

"I believe the COE will not be significantly different, perhaps by then it's cheaper by S$5,000. But if I would like to change car now, I would prefer to change the car now, rather than wait for a S$5,000-6,000 decrease," said motorist Ng Chiau Hung.

 

Danny Thien, a potential car buyer, said: "With the latest news, I will definitely wait and see until the prices stabilise more. With the latest measures, it will definitely have an impact on the number of COEs released, and hopefully the car prices will continue to come down."

 

However, one transport analyst cautioned that COE prices may still continue to climb.

 

Professor Ivan Png from the Department of Information Systems at the National University of Singapore, said: "In a climate where de-registrations are falling and we reduce the lag between de-registrations and the future COE supply, then what's going to happen is the COE quota is going to be lower than it would have been otherwise.

 

"So if we look forward in the future and there will come a time when de-registrations start to fall then this new policy of reducing the lag will have the effect of making fewer COEs available and therefore COE premiums will be higher."

 

Besides replacement COEs for vehicles de-registered, the supply of COEs is also calculated on the provision for 0.5 per cent per annum vehicle growth and adjustments for changes in the taxi population.

 

The next announcement of COE quotas will be in April.

 

================================================================

 

Any opnion about it? What will be the renew coe / new coe effected.

 

If to buy new, should buy now or later.

To renew coe, should renew now or later?

Edited January 17, 2014 by virux

[virux]

Dealers surprised by significant cut in COE quota for motorcycles

ChannelNewAsia

 

Motorcycle traders have expressed surprise at the reduced Certificate of Entitlement (COE) quota for motorcycles as a result of a new three-month allocation system announced on January 13.

 

SINGAPORE: Motorcycle traders have expressed surprise at the reduced Certificate of Entitlement (COE) quota for motorcycles as a result of a new three-month allocation system announced on January 13.

 

The monthly COE quota for motorcycles will shrink by 25 per cent for the three months to April.

 

Dealers had expected COE supply to fall but not by this much.

 

The number of COEs now allocated for motorcycles is 719, compared to 961 a month between last August and this month.

 

Motorcycle dealers said the drop in COE supply can be attributed to the increase in the number of motorcycles registered last year.

 

With the much lower supply, they expect COE premiums to rise, with one trader saying it could go up by about S$300.

 

Eugene Mah, manager at Mah Pte Ltd, said: "The biggest market that would be affected would be consumers that use it for transport. If you look at it from the despatch guy's point of view, he is riding a bike that's maybe slightly higher than the price of a COE."

 

Rex Tan, managing director of Ban Hock Hin, said: "Motorcycles contribute minimally, if any, towards vehicle congestion. There are international studies that support this theory so the large reduction in the motorcycle sector is actually quite confusing to me."

 

The number of motorcycles on the road has been generally stable over the years.

 

Last year, there were about 145,000 motorcycles, an increase of only nearly seven per cent over a period of 10 years. This compares with a 52 per cent growth in the number of cars over the same period.

[drifting_mp3]

Dealers surprised by significant cut in COE quota for motorcycles

ChannelNewAsia

 

Motorcycle traders have expressed surprise at the reduced Certificate of Entitlement (COE) quota for motorcycles as a result of a new three-month allocation system announced on January 13.

 

SINGAPORE: Motorcycle traders have expressed surprise at the reduced Certificate of Entitlement (COE) quota for motorcycles as a result of a new three-month allocation system announced on January 13.

 

The monthly COE quota for motorcycles will shrink by 25 per cent for the three months to April.

 

Dealers had expected COE supply to fall but not by this much.

 

The number of COEs now allocated for motorcycles is 719, compared to 961 a month between last August and this month.

 

Motorcycle dealers said the drop in COE supply can be attributed to the increase in the number of motorcycles registered last year.

 

With the much lower supply, they expect COE premiums to rise, with one trader saying it could go up by about S$300.

 

Eugene Mah, manager at Mah Pte Ltd, said: "The biggest market that would be affected would be consumers that use it for transport. If you look at it from the despatch guy's point of view, he is riding a bike that's maybe slightly higher than the price of a COE."

 

Rex Tan, managing director of Ban Hock Hin, said: "Motorcycles contribute minimally, if any, towards vehicle congestion. There are international studies that support this theory so the large reduction in the motorcycle sector is actually quite confusing to me."

 

The number of motorcycles on the road has been generally stable over the years.

 

Last year, there were about 145,000 motorcycles, an increase of only nearly seven per cent over a period of 10 years. This compares with a 52 per cent growth in the number of cars over the same period.

 

I left one year to go for my bike....probably will renew the 10 years end of this month.

 

Looking at the reduction, possibility of Cat D COE reaching above 2.5k is not too far fetch.

[virux]

Mine also will end on next year. As of current 2014 Jan cat D is 17++.

How to calculate for next 10 year renew COE? The same amount as it 17++?

[wait4me]

holy .. prepare for 3k COE sia...

[drifting_mp3]

Mine also will end on next year. As of current 2014 Jan cat D is 17++.

How to calculate for next 10 year renew COE? The same amount as it 17++?

 

Spoke to LTA last Friday and it seems as long as renew by 30th Jan 2014, the PQP will be $1797. Thereafter, it will be the 3 months moving average including the month of Jan which the 1st bidding is already close to $2k.

 

I will probably make up my mind come this Wednesday after the bidding....

[drifting_mp3]

COE $2704.....Terrible. Looks like will have to waste one year COE and renew now.

[ki113r]

Omg! My COE ends in May 2014. Should I renew it now?

[CyanSupra]

Omg! My COE ends in May 2014. Should I renew it now?

 

Mine also in May

 

I think i gonna forgo the 4 mths and renew it before it increase again

 

Sent from my SM-N9005 using Tapatalk

[yeahh]

I think more and more people will scrap their bike soon if the coe really increase so much.

[virux]

Mine in march 2015 and gotta renew now. Increase rate is 1000 roughly and for Q2 Q3 Q4 and 2015 Q1 => definitely next year about 5000.

It is Damnnn!

[nick_09]

Gosh...next year 2015 gonna hit that high?...!!!!! Headache Headache....

 

This can't be happening....! Absolute Headache !!!

Edited January 22, 2014 by nick_09

[virux]

Singapore Motor Cycle Trade Association President Wilson Phoon attributed the surge in premiums for two-wheelers to “panic-buying” in response to the reduction of COEs available for them from next month. “Normally, we are issued about 500 pieces bi-monthly, but now we only have 350,” he said.

 

Mr Phoon expects motorcycle COE prices to continue heading north, with dealers rushing to clear their stock before emission standards for two-wheelers are tightened in October.

 

http://www.todayonline.com/singapore/no-surge-coes-cars

 

emission standards for two-wheelers are tightened in October.

 

This is new thing I've heard!

[gargantua]

decisions...decisions...

[drifting_mp3]

Quota of COE is dependent on # of scrapped.

 

So if everyone with 1 or 2 years COE left starts renewing the COE, naturally price will creep up in next 12 months.

[haoKR]

mine still got 2years..sian now

[virux]

drifting_mp3 :: as long as not reached 30th Jan, remain 1797 rite.

I just checked and still remain.

 

Gotta wait for payday lah. lol

 

Bikers are not rich like Car owners, Gov like to chop chop those poors.....

Once public transport fares increase, afraid most ppl will buy bike and it is to prevent . huh..

-1 vote!

Edited January 23, 2014 by virux

[virux]

Today straight time post

Motorcycle COEs zoom ahead in mixed results

The premium for motorcycles shot from $1,989 to $2,704 - its highest level since 1997

 

http://www.straitstimes.com/breaking-news/singapore/story/motorcycle-coes-zoom-ahead-mixed-results-20140122

 

[di_andrei]

up to $3,051

[guangwei]

anybody written to lta yet?