The Straits Times
Published on Feb 02, 2013

Stop dealers from bundling COE price with vehicle cost


IN THE past few years, I have noticed a significant increase in the number of cars on the road and a rise in traffic congestion. Hence, the tightening of the certificate of entitlement (COE) quota is a correct move.

High COE prices are not due to the limited supply. Instead, they are a result of aggressive bidding by car dealers to secure the COE and put their makes on the road. The COE cost is then passed on to consumers.

Such car dealers are unwilling to deal with buyers who have their own COE, possibly because they will make more profit by bundling the COE price, import duties and vehicle cost together.

Since COEs are not aimed at generating excessive revenue for dealers, there should be legislation to stop dealers from bundling the COE and car price together.

Bidding should also be limited to individuals, using platforms like their Internet banking portals. This should help bring COE prices down to reasonable levels.

Tan Hwee Siang