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.
Some dealers argue that the proposed S$15,000 surcharge on COE for luxury cars may not be sufficient to discourage high-end buyers. Car showrooms in Ubi were quiet on Friday with potential buyers undecided about purchasing a vehicle. The Land Transport Authority (LTA) has proposed merging COE categories A and B, which classify cars by engine size and power, into a single category and introducing fees and rebates based on open market value.
LTA expects the COE price difference between luxury and mass-market vehicles to be reduced to S$30,000 after fees and rebates. However, dealers such as Raymond Tang, first vice-president of the Singapore Vehicle Traders Association, believe the surcharge should be at least S$25,000 to make a significant difference. The current S$15,000 surcharge is not enough to affect the spending power of luxury car buyers, according to Mr. Anson Lee, managing director of Euro Performance Asia.
The LTA's proposal is open for public consultation until Nov 2, with findings and recommendations to be released by the first half of 2027.
Written by urgent.news from CNA - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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