At this level car sharing is just a logical and reasonable result.
I just spent 10 minutes typing this so I hope a word of thanks is not too much to ask for.
I already posted three ideas. not all mine by the way but what I have gathered from LTA round table discussions and other online forums.
1) Change COE to pay as you bid, closed auction system.
2) Remove dealer bidding.
3) Add a COE category that pays 10x or 20x ERP.
No need COE here.
However with due respect, I don't think it's going to work. I travel to Jakarta often, I tell you we don't want to be in a situation like them. It's like always jam. It's really really bad..
Basis for my idea is that there is already some kind of system and figures that dictates how many new COE's can be issues before the roads become parking lots. The bidding exercise is run against a limited amount of COE per categorie, the LTA publications show how many were awarded.
1) The categories remain as classifications, each of the categories gets a quota similar to what is already in place.
3) Everyone (person) can only queue for one category. Companies are not restricted.
(Yes, everyone can queue up, the entire family. But it's a linear queue (in technical terms: FIFO). SO what's the point of loading your entire family into the queue? You just block others, but no gains for you unless your family members queue up for another category.)
4) If it's your turn and you can't afford a car at this point in time then the COE goes to the next in queue.
5) Lifespan is increased to 15 years.
In addition, the financing rules need to be checked, similar to HDB financing rules to avoid people overload themselves with loans.
The system in an evolving system anyway, nobody can predict the outcome just by knowing the few rules that we discuss here. But at least it removes the price driving factors and puts everyone at the same level. As a result, the second hand market will also benefit and many people will get their cars there. The idea of 'must have new car' is just another driving factor for the crazy bidding.
Let's look deeper. Your proposal include diesel? If no, people just rush to diesel engines.
If yes, car owners just switch to lower cc hybrids. But then lorry, vans, busses can't. So general transportation cost goes up. In addition to the increase in the cost of living, those NOT owning or using cars will be penalized while those that do have ways to mitigate the effect. Most companies only need to buy a COE once in a blue moon - but needs to keep running their vehicles on the road 24/7. And you think companies will absorb the increase in fuel cost? Just look at airlines.
The bottomline is that: "tax on usage" does not work because there are differences in the types of usage - using a lorry to ferry rice to the market is not the same as some one ferrying his kids to ballet class. Yet, there is no easy way to distinguish nor classify these usages on a micro scale. So neither an island wide ERP nor your proposed additional fuel tax will work - because they can't distinguish one usage from another.
Last edited by UncleFai; 24th March 2014 at 09:55 AM.
No solution is perfect. The best solution is one that has the least problems. Actually Island wide ERP can differentiate passenger car from bus/goods vehicle.
Everyone wants a car, and everyone thinks they deserve it or have a good reason to own it, but doesn't want to pay for it.
No one wants to pay tax, COE or ERP, and wants to have a smooth ride to work, a nice cushy job that pays big bucks with short working hours, and no competition from any others domestic or foreign..
Please tell me which country has this?
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Bottomline: people will game whatever system you can think up - including the car vendors, and the owners.
Last edited by UncleFai; 24th March 2014 at 02:00 PM.
After all the inputs, don't we all accept that owning car is a luxury item other than those for commercial use?
Pricing is the only way out, whether via COE or ERP. HOWEVER, public transport needs to be improved. I have been driving for the past 40 years. If it becomes unaffordable for me to drive, I will rely on public transport. That is life. Who shouldn't own a car? I need a bungalow! Haha.
Many a times, it is a matter of adjustment. We didn't born with anything. A simpler life may. It be bad after all.
Layman's/coffeeshop talk theory..
The "authority without authority" say too many cars on the road. Raise ERP to "curb" traffic. Then they found ppl bo chap abt ERP, now becomes their cash cow.
They see Sg people $$ to easy to earn. COE prices rise as high as the hdb flats built. Ppl LL have to buy car as it's becoming a necessity. (Hdb area no market, have to head somewhere away from hdb estate.)
They forgot that ppl scrap old cars to buy new cars. This is called replacement.
They ask people not to drive as for car, mostly govt only earn road tax/petrol taxes. Insurance, servicing n other stuff is by private biz.
Take public transport. Haha! The "govt associated" companies already monopolised the entire sg.
So u think singapore think about the people?
Msia, once u buy the car, it's urs. 10 yrs after buying ur first car, u buy 2nd car still can keep w/o paying to govt anything more.
Pay as you bid. I was a proponent of this but thinking about it again, it might not achieve the intended. It also needs to be coupled with elimination of proxy bids by the dealers.
Initially, yes, everyone will bid what they 'feel' is reasonable. After a few failed tries, you'll up the bid. Undoubtedly some will fall by the wayside. But with each failed bid, the bid creeps up until you'll likely see the same levels as today once it becomes a resigned fate that anything lower than $80k or whatever it is will be a failed bid.