Will COE prices drop if LTA merges Cat A and B, adds rebates and surcharge bands?

premiums for cars fall if there is just one COE category for cars, with tiered surcharge or rebate depending on the vehicle

’s open market value?

These are some changes that the Land Transport Authority (LTA) proposed on Oct 8 as part of a review of the COE system

for cars.

This comes as the gap between Category A and B premiums has narrowed, making the distinction between mass-market and higher-end cars less clear.

In this episode of The Usual Place, I speak to ST’s senior transport correspondent Lee Nian Tjoe and NUS associate professor Timothy Wong, who researches transportation and urban economics.

How will the proposed changes affect the market? Will car dealers game the system?

And if you’re in the market for a new car, should you buy now or wait until the proposed changes kick in?

Highlights (click/tap above):

1:20 What is LTA is proposing and why?

5:21 Will COE prices come down?

7:13 How would a rebate and surcharge system work?

12:07 Can dealers game the system to get into lower OMV tiers?

17:03 More ‘feebate’ bands could ensure greater fairness

25:24 Will LTA ever tackle high COE prices?

29:24 Should private hire cars get a surcharge?

35:31 Is owning a car now a luxury?

If you would like to give feedback on LTA’s proposal, go to https://go.gov.sg/coe-pcd-feedback.

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Filmed by: Studio+65

Edited by: Eden Soh and Yang Jiesan Cruz

Executive producer: Danson Cheong

Producers: Natasha Ann Zachariah, Elizabeth Law and Zachary Lim

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