Current COE system to stay: Josephine Teo

[guangwei]

In response to a question by MP Gan Thiam Poh, the Senior Minister of State for Transport says LTA has decided to retain the current system after an extensive consultation yielded mixed views.

 

 

SINGAPORE: The Land Transport Authority (LTA) had considered possible ways to ease COE prices. These included restricting car dealers from COE bidding and adopting a "pay as you bid" model for applicants.

 

However, the LTA has decided to retain the current system after an extensive consultation yielded mixed views. This is according to Senior Minister of State for Transport Josephine Teo, who spoke in Parliament on Thursday (Feb 12).

 

Mrs Teo was responding to a question by Member of Parliament Gan Thiam Poh on revamping the current bidding system. She said the current system gives vehicle buyers flexibility.

 

Some of those involved in the consultation also said banning dealers from bidding might not lead to lower COE prices. Such a ban could also be easily circumvented. Applicants might also spend more time and money adjusting their bids under a "pay as you bid" system.

 

Mrs Teo said: "80 to 90 per cent of the successful COE bids are typically clustered within the 5 to 10 per cent range of the final COE price. This suggests that the current bidding model is fairly robust, with not many extreme bids.

 

"In fact, experts in auction theory agree that the current system, which prices all COEs within a category uniformly, incentivised bidders to bid their true valuation."

- CNA/ms

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HUAT AH, HAPPY CNY

 

Every CNY increase CAT D price by 3 folds.

Edited February 17, 2015 by guangwei

[DeusExMachina]

Look at that spike in the 2014 region.

Spikes are always due to supply cuts and speculation, and/or manipulation. Often, they work hand in hand.

 

Jo Teo is seriously mistaken.

Auction theory works when the one bidding is the buyer him/herself, and not a person working to close a deal and is not the one paying the final price.

Once you plop down a downpayment for a car/bike, you're already exposing yourself to risk that the dealer will simply place an exorbitant bid to close your deal.

 

So the LTA doesn't budge because a review and probably a consultation (likely with the motor industry players) yielded mixed reviews?

Think about it. Motor industry players are here to make $$. They wouldn't mind having the COE remain on the high side (though not ridiculously high where it puts everyone off) so they'll constantly test the waters, pushing the price up and seeing the take up rate. It just means more loan interest for them.

 

 

Unless regulations are implemented to have a back out clause due to unreasonable COE values, or if you eliminate the DP altogether, then you as the buyer will always stand to lose.

It's a game, and buyers are the losers.

[Siphon]

$$$$$$$$$$$$$$$$$$$$$$$$$....

 

who don't want