Consider 'pay as you bid' COE system

I agree with Mr Richard Chan Yong Huat that the certificate of entitlement (COE) bidding process needs a change ("Put COE bidding in hands of buyers, not dealers"; Jan 26).

Currently, car buyers usually do not bid for the COE, but buy the vehicles based on a bundled deal that includes the price of the COE. The dealer will bid on customers' behalf.

As Mr Chan has suggested, we should give the "pay as you bid" system a try. The market will take care of itself.

The car population growth is controlled by the Land Transport Authority, and a "pay as you bid" system will not affect such growth, but may help bring down the COE price.

If the authorities reject calls to change the bidding system, I hope they can explain the rationale for not tweaking the system.

Kang Choon Tian