Off-peak cars are now back in demand
-
With the steady fall of COE prices, the $17,000 rebate for the red plate is now proportionately larger, so sales are up
By Christopher Tan
OFF-PEAK cars, those red-plated vehicles which can be used only during certain hours, are making a comeback.
Last year, 920 of them were sold, nearly double that in 2002 and the highest number in a year since the scheme started in October 1994. At the end of last year, there were 2,644 in all on the road.
Car traders reckon that the gradual but steady decline of certificate of entitlement (COE) prices could be the main reason for the latest surge in off-peak car sales, since the $17,000 rebate accorded to such vehicles becomes proportionately larger with lower COEs.
For instance, a Toyota Corolla at the current COE is going for $72,000. A $17,000 rebate would mean a 24 per cent saving. In the mid-1990s, a Corolla was selling for as much as $110,000. Then, the rebate would have meant only a 15 per cent reduction.
Car COEs are currently at their lowest in five to seven years. Other upfront taxes, like additional registration fee (ARF) and excise duty, have also been on the slide.
Dealers say it is an affordability issue.
Mr Marcus Ang, marketing manager of Hyundai agent Komoco Motors, said: 'Take our Hyundai Accent, which is retailing at $54,888. After the $17,000 rebate, that's $37,888. Imagine how cheap a new car can be.'
Off-peak cars attract significantly lower road taxes too. It is $50 per year for a 1.3-litre Accent, compared with about $750 for a normal car.
Nearly 40 per cent of those who bought off-peak cars last year picked a Hyundai. They also went for other budget buys by Kia, Daewoo, Toyota, Nissan and Mazda.
The catch of course is that such cars can be driven only from 7pm to 7am on weekdays; and after 3pm on Saturdays and the eves of major public holidays. They can be driven the whole day on Sundays and public holidays.
Should owners want to drive outside these hours, they have to buy a $20 day coupon.
The off-peak car scheme replaced the weekend car scheme, which was introduced in 1991 to make cars more affordable.
But the weekend scheme favoured buyers of bigger cars because it had its own COE category, which often had much lower premiums. It ended up encouraging a proliferation of red-plated luxury cars like Bentleys, Jaguars and Mercedes-Benzes.
Back then, 2,500 to 2,800 weekend cars were sold a year, mostly large vehicles.
When the rules changed in 1994, so did the trend. Immediately, sales of such cars fell - until a few years ago.
Meanwhile, the Land Transport Authority is reviewing the $800 fee levied on those who want to convert their off-peak cars to normal ones. Converting a normal car to an off-peak one costs $100.
-ST -
Originally posted by wuming78:
i m quite tempting with the rebate given.it sound good for me.coz if i bought a off peak car,while having a car van too,it benefit me it a way.while in the daytime,i drive my van,in the evening,i drive my off-peak car.its cheap to buy after the $17,000 rebate.
With the steady fall of COE prices, the $17,000 rebate for the red plate is now proportionately larger, so sales are up
By Christopher Tan
OFF-PEAK cars, those red-plated vehicles which can be used only during certain hours, are making a comeback.
Last year, 920 of them were sold, nearly double that in 2002 and the highest number in a year since the scheme started in October 1994. At the end of last year, there were 2,644 in all on the road.
Car traders reckon that the gradual but steady decline of certificate of entitlement (COE) prices could be the main reason for the latest surge in off-peak car sales, since [b]the $17,000 rebate accorded to such vehicles becomes proportionately larger with lower COEs.
For instance, a Toyota Corolla at the current COE is going for $72,000. A $17,000 rebate would mean a 24 per cent saving. In the mid-1990s, a Corolla was selling for as much as $110,000. Then, the rebate would have meant only a 15 per cent reduction.
Car COEs are currently at their lowest in five to seven years. Other upfront taxes, like additional registration fee (ARF) and excise duty, have also been on the slide.
Dealers say it is an affordability issue.
Mr Marcus Ang, marketing manager of Hyundai agent Komoco Motors, said: 'Take our Hyundai Accent, which is retailing at $54,888. After the $17,000 rebate, that's $37,888. Imagine how cheap a new car can be.'
Off-peak cars attract significantly lower road taxes too. It is $50 per year for a 1.3-litre Accent, compared with about $750 for a normal car.
Nearly 40 per cent of those who bought off-peak cars last year picked a Hyundai. They also went for other budget buys by Kia, Daewoo, Toyota, Nissan and Mazda.
The catch of course is that such cars can be driven only from 7pm to 7am on weekdays; and after 3pm on Saturdays and the eves of major public holidays. They can be driven the whole day on Sundays and public holidays.
Should owners want to drive outside these hours, they have to buy a $20 day coupon.
The off-peak car scheme replaced the weekend car scheme, which was introduced in 1991 to make cars more affordable.
But the weekend scheme favoured buyers of bigger cars because it had its own COE category, which often had much lower premiums. It ended up encouraging a proliferation of red-plated luxury cars like Bentleys, Jaguars and Mercedes-Benzes.
Back then, 2,500 to 2,800 weekend cars were sold a year, mostly large vehicles.
When the rules changed in 1994, so did the trend. Immediately, sales of such cars fell - until a few years ago.
Meanwhile, the Land Transport Authority is reviewing the $800 fee levied on those who want to convert their off-peak cars to normal ones. Converting a normal car to an off-peak one costs $100.
-ST
[/b]
moreover,no need to worry abt ERP.
-
if got van y stil need car?
-
That what i think so.But,when come to driving speed,it limits to 60km/hr only.Originally posted by wuming78:if got van y stil need car?
well,driving a car,is always more comfortable,where else, van is more noisy & speed is limited. -
Small vans like caddy can be very comfortable and powerfull also. Beside, u got more space to play around with. Audio system and stuffs. Just that cant carry more passanger, cant go fast on spore road and cant go Malaysia.