Proposed S$15,000 COE surcharge too low to deter luxury car buyers, some dealers say
Some prospective buyers of mass-market cars are holding off on purchases as the Land Transport Authority conducts a public consultation on merging COE categories A and B.
Car dealers argue that a proposed S$15,000 surcharge on COE for luxury cars may be too low to deter high-end buyers. The Singapore Land Transport Authority (LTA) is seeking public input on merging COE categories A and B, which classify cars by engine size and power into a single category. Fees and rebates based on open market value would be introduced for different car models.
LTA expects merging the categories to better distinguish high-end and mass-market vehicles, as the price gap has been narrowing. Dealers believe a higher surcharge, such as S$25,000, would be more effective in lowering the average COE premium and making cars more affordable for families and caregivers. Some dealers anticipate a shift in demand, with consumers opting for mass-market cars due to rebates and lower competition for COEs from luxury car buyers.
Written by urgent.news from Channel News Asia's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
