The COE Singapore works like this. You want to buy a car, you get informed about the certain rules that must be followed in order for you to be a properly legalized car owner, you follow the rules, the rules guide you to COE, you meet COE. That’s about every car owner’s story in Singapore. Yes COE is a way for you to be able to drive a car in Singapore, not just a way but THE way because only after you get your COE license will you be able to drive a car. Thanks to the COE prices rising to a truly ridiculous level care sales have been consistently dropping in the recent years. The thing is that since the LTA controls the number of COE’s released monthly, its rarity makes the COE an expendable and very valuable piece of document. Let’s put it in other words, had there only been about a thousand apple computers to buy in the whole world, you’d expect their price to be sky-high and also a very desirable product as well.
A lot of complains are heard on a daily basis but people got used to the way things are because the COE system isn’t something new to begin with. Its regulative power has been a very successful cure to the traffic poison but on the other hand it has made a simple process in other countries become a painful one in Singapore. People often tend to debate about how the system should be changed and how the way to lower the car density in the traffic is not only made by placing this permit, but who should step up and propose a better way for this to be forgotten?
While we can’t actually change the system, what we can do is give advice on how to better adapt on the present one. Deregistration, that has been happening for quite a while now and it has helped the COE prices to come down a peg. Due to the larger number of cars turning 10 years old soon they will be due to COE renewal or deregistration, and every new de-registered car makes way for a fresh COE. Last year more than 100,000 cars hit the ten year mark and that helped a lot. The gap between supply and demand isn’t as big that way, therefore prices instantly come down. So this being pointed out, unless there is a case of a major increase in demand, prices should remain lower.