COE prices fall across all categories in latest bidding exercise

Certificate of Entitlement (COE) premiums fell across the board at the close of November's first bidding exercise on Wednesday.

This is the second consecutive tender where COE prices have fallen in all categories.

The biggest drop in COE price - at 18.3 per cent - is for commercial vehicles. It ended at S$55,503.

Dealers have been rushing to clear old stock of Euro 4 vehicles before new regulations kick in next year.

In January, new diesel vehicles have to meet the more stringent Euro 5 emission standard.

Commercial vehicle traders have written in to the National Environment Agency about two weeks ago to appeal for a delay in the requirement for the Euro 5 emission standard. At this point in time, they are still waiting for the results of that appeal.

The COE price for small cars fell by 5.6 per cent to S$72,609.

For big cars, the premium went down by 3.8 per cent to S$84,578.

Weiye Wang, procurement manager at Supercars Concept, said: "Generally there is no new launch of exciting new models and coming to year end, people's expenditure patterns will be geared towards other consumer goods, especially when leveraging ability is severely curbed."

Car dealers also expect COE premiums to inch up again in the next few bidding exercises.

Mr Wang said: "There will be certain corrections. The probability of it going up definitely exists, because as the festive season goes over, the consumer will be looking at more pertinent needs of their mobility solution, and that is when the demand will go higher."

The open category COE price dipped about 3.6 per cent to close at S$89,001.

COE premium for motorcycles slid 5.2 per cent to S$1,710.

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A slip across the board for the second consecutive time. What are the chances of a third slip in three biddings? Suddenly the 100k mark seems so far. The good thing is the commercial category slipping the most as they're the direct cause of inflation to business costs, which will be passed to consumers.

Camry sedan and Lexus SUV Ang Mo Kio road rage

Another case of two vehicles not giving way to each other and ended up with some sort of a road rage. That stunt by the black SUV looks like one from the movies; pushing the tail and making the car lose traction.

Cyclist breaks all traffic rules, stops traffic near Vivocity

Too bad the volume is mute, I believe the driver must have sounded the horn at the cyclist to sort of "infuriate" him. However, the cyclist is moving to closely with the vehicles around, leaving himself vulnerable to contacts which will result in an accident.

Certificate of Entitlement (COE) premiums for vehicles continued to surge across the board at the end of the latest bidding exercise which ended today, with the bigger car and open categories crossing the S$90,000-mark.

This is the second bidding exercise since the Land Transport Authority announced engine power caps for the small car category last month.

COE premiums for small cars (1,600cc and below) increase to close 1.49 per cent higher at S$85,000, compared with S$83,751 in the previous bidding exercise.

Premiums for big cars (1,601cc and above) increased by 8.42 per cent to cross the from S$86,239 to S$93,500.

In the Open category, where COEs can be used for any vehicle type but end up mainly for cars, the premium increased by 7.92 per cent to S$93,889 from S$87,001.

The COE premium for commercial vehicles continued to break past records, inching up 0.41 per cent to S$76,310 from S$76,001, while the premium for two-wheelers increased by 15.15 per cent to S$1,961.

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Very sharp increase for both Cat B and Open Cat. The rocket towards the $100k seems relentless.

Three pilot sites to be implemented with mechanised parking systems by 2015

This morning, Er Dr Lee Bee Wah, Chairperson of the Government Parliamentary Committee (GPC) for National Development, announced that HDB will be implementing the Mechanised Parking System (MPS) in three pilot sites :

a. Car Park BJ15, beside Block 259A Bangkit Road

b. Car Park Y39, beside Block 666A Yishun Avenue 4

c. Car Park CV1, behind Block 1 Changi Village Road

Background

Currently, HDB takes a two-pronged approach to meet residents' needs for car park spaces. First, HDB is increasing supply, by adding more car park lots where feasible. Second, HDB is also better managing demand, by setting aside more reserved "red-lots" for residents, removing the Night Parking Scheme for non-residents, and implementing Electronic Pricing System (EPS) to increase the turnover of short-term parking demand.

Joint GPC-HDB Study on MPS

In January 2012, Er Dr Lee initiated a joint GPC-HDB study on the viability of mechanised parking in HDB estates in Singapore. The objective is to address local car park shortages in older HDB estates, where there is limited space to build more car park lots.

The study team evaluated different mechanised parking technologies and looked into potential implementation issues such as residents' acceptance, retrieval time and management of breakdowns.

The team visited local commercial and private residential developments which have already implemented mechanised car parking systems to learn from their experience. It also studied experiences in Japan and South Korea, two countries which use such systems extensively to cater to the parking needs of their urban population.

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A good initiative to ease the parking woes of car owners. Other than the waiting time and risk of the machines breaking down, I think this is one of the best form of carpark available. It is sheltered, you won't get knocks on your doors caused by stupid people forcefully opening their doors beside your car and you know your car is safe from any form of theft. I await eagerly to see how useful it is when implemented by HDB.

Worry over soaring COE cost

Sky-high certificate of entitlement (COE) prices for commercial vehicles have become a worry for businesses, motor traders and the authorities.

Premiums for vans, trucks and buses have been setting record after record in recent months.

Now at $76,001, it has more than doubled its price since 2011 - chalking the biggest rise among all COE categories in the two years.

The motor industry attributes the climb to three factors.

First, there has been a construction boom that is driving demand for heavy vehicles such as concrete carriers and dump trucks.

According to Mr Ron Lim, general manager of Nissan agent Tan Chong Motor, heavy vehicles now make up more than 50 per cent of commercial vehicle sales - up from the usual 20 per cent.

Second, motor dealers are clearing existing stock ahead of a new emission standard that kicks in on Jan 1. Third, speculators may be hoarding COEs in the hope of turning a profit by reselling them to motor dealers stuck with stock as the new year draws nearer.

Said Mr Lim: "If there is speculation, the Government should step in quickly to address the situation. Or consider a three- to six-month extension to the emission deadline. This should quell all speculative activities."

The Land Transport Authority (LTA) said it is hard to detect speculative activities. But it added that there are deterrents in place, such as a shorter three-month validity period for commercial COEs, half that of car certificates.

Still, an LTA spokesman said it is looking at ways to improve the system, including putting light and heavy commercial vehicles in separate categories. Buyers of the latter are better able to tolerate high COE prices since heavy vehicles are far costlier.

Transport Minister Lui Tuck Yew told Parliament in March that the Government "will study carefully" if buyers of "light goods vehicles should pay the same COE premium as heavy and very heavy goods vehicles".

Small and medium-sized businesses hope something will be done soon. Association of Small and Medium Enterprises president Chan Chong Beng said that the issue of high vehicle costs has overtaken labour shortage as the top concern raised by members. "For many small businesses, a vehicle is a must... And because of the new emission standard, prices will continue to rise next year, and that's very, very scary."

Vehicle cost will account for a bigger cost component for businesses, Mr Chan added. "Many, like hawkers, will find it hard to pass it on to consumers."

He said having separate COE categories for light and heavy vehicles would be "a good solution".

Ms Ivy Tao, 54, who runs a fleet of buses ferrying workers, said she has no choice but to delay replacing her older vehicles. "COEs are high, fuel prices are high. We don't feel secure any more."

LTA said businesses can consider extending their expiring COEs - by paying a prevailing quota premium - by five years, which they can do twice now since a restriction was lifted in February.

Previously, these COEs could either be extended by five or 10 years. Owners who chose the former had to scrap their vehicles at the end of their extension. Since the policy change, LTA said about 96 per cent of commercial COE renewals have been for five years, up from 57.

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Segregating the different types of commercial vehicles is a good idea, putting less stress on small businesses like hawker stall owners. The boom in construction comes with a price, quite literally.

Grouses about car dealers speeding up

Complaints against motor vehicle dealers have accelerated this year, and Singapore's consumer watchdog wants the industry to take action.

The Consumers Association of Singapore (Case) received 2,438 complaints against the motor vehicle industry from January to September. This already exceeds the 2,255 made in the whole of last year - when it topped Case's list of most-complained about industries for the first time.

Most of the complaints were aimed at used car dealers. Common gripes included defective parts, late delivery, refusing to repair defects and keeping customers' deposits when loans were not approved.

To mitigate the problem, Case wants all members of the Singapore Vehicle Traders Association (SVTA) to provide after-sales service, including repairs. It also wants them to pay for third-party inspections of all cars and repair any defects before selling them.

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Finding a good second hand car dealer is like looking for a dinosaur in today's age; extinct. If you're not one inclined with automotive knowledge, you will often be coerced into buying a defective car, a trait that many of such dealers possess. So it is not a surprise that the number increased, but it is a surprise that it increased even when the Lemon Law has been passed down.

It seems that if the authorities do not do more to regulate the industry, such bad rep will continue.

SJM303P in Katong area

This is terrible driving. Thank god he only manage to go this far before his incapability stopped him.

Sales of smaller Cat A cars slow after changes to COE announced

Some mass market car dealers said sales for smaller Category A cars has slowed since changes to the Certificate of Entitlement (COE) system were announced earlier this month.

Starting next February, the changes will include a new criteria for Category A cars to limit engine power to not more than 130 brake horsepower.

The changes will kick in next February.

Potential buyers MediaCorp spoke with are unsure where COE prices would head.

Some dealers have already introduced new deals to try and woo buyers of smaller cars.

Tan Chong Motors said under its new package, it's offering a S$20,000 discount.

It expects COE prices to fall by that amount in the next six months.

It is also offering buyers 12 rounds of COE bidding over a six-month period with a budget of S$60,000.

If COE prices are above S$60,000, buyers can choose to not purchase the car.

The COE price for Category A cars in the last bidding exercise was S$83,751.

Ron Lim, general manager of Tan Chong Motors, said: "If the continental mix or the luxury mix are clearing models at such a fast rate as what they have mentioned, they could've cleared the stock much earlier than next February. Given that, there could be a window period where COE might correct more aggressively and earlier than expected February or March."

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With so much time left till we're at February, don't expect the continental mix to simply stop importing their Cat A cars once current stocks have been cleared, thus the drop in COE won't probably happen so soon. Car buyers should sit back and watch how the prices will unfold until February arrives.

COE prices rise across the board

Certificate of Entitlement premiums increased across the board in the second bidding exercise for September.

This was the first bidding exercise since the government recently tweaked the COE system, introducing a new criterion for Category A cars. From February next year, cars in that category must not have an engine power of more than 130bhp.

At the end of the tender on Wednesday, the COE price for small cars closed at S$83,751 - an increase of S$6,447.

The premium for big cars ended at S$86,239 - up by S$9,139, the biggest rise in the tender.

Open Category COEs, which can be used for any vehicle type but end up mainly for cars, rose S$7,001 to close at S$87,001.

For commercial vehicles, the COE prices inched up by S$2,002 to close at S$76,001.

COEs for motorcycles ended at S$1,703, an increase of S$43.

Industry watchers had expected COE prices to go up after the government tweaked the system last week.

However, what surprised them was the extent of the increase.

COE premiums for bigger cars surged by nearly 12 per cent.

Raymond Tang, honorary secretary of the Singapore Vehicle Traders Association, said: "After February, Cat B will have a big group of cars going in there... from Cat A. So, most of the people are worried that will cause the COE of Cat B to be overcrowded."

COE prices for smaller cars went up by more than 8 per cent.

Car dealers noted that these prices are inching closer to record highs seen earlier this year.

Ron Lim, general manager of Tan Chong Motor, said: "A lot of people are buying into the story that the COE will go up with this tweak. In a way, it is a self-fulfilling prophecy.

“People are rushing in, but with today's rise, hopefully consumers will take a step back and try to digest the situation and ask themselves whether it is a rational thing to do, to rush in like that.

“We are all trending near record high numbers, does it actually make sense or not is a good question."

Industry experts said that whether or not COE prices will continue to soar depends on the amount of car stock left from car dealers affected by the changes. It also depends on how much consumers can digest such price increases.

Car traders still expect car showrooms to continue to be packed in the months ahead.

However, they cautioned that if COE prices are being driven up so high now, a more drastic correction will be needed later.

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Like clockwork, COE rocketed after the latest bidding since revealing the new ruling. The rush for the cars definitely inflicted this balloon, and the higher it will go if the rush doesn't subside. It will come to a point where consumers are finally finding it hard to swallow the inflation and start to back out, but that is unlikely.

With the CNY coming in less than 4-months' time, the hot period for car purchase is just round the corner. This will further add fuel to the fire and dealers are already expecting COE to hit above S$100k before February.

High traffic at car showrooms after COE tweaks

Some car showrooms were packed with potential buyers on Saturday, following the changes to the Certificate of Entitlement (COE) system announced earlier this week.

Some carmakers even cut prices ahead of the changes, which will come into effect next year.

Swedish carmaker Volvo said traffic at their showroom doubled, as they dangled discounts ranging between S$20,000 and S$30,000.

The luxury car maker has five models with an engine capacity of below 1,600cc.

But these models also have a high engine horsepower of more than 130 brake horsepower.

From February next year, these will be transferred from the current category A to category B, competing with other premium brands.

Carmakers seem to be benefiting, at least for now.

Chow Yi Ling, marketing manager for Volvo Wearnes Automotive, said: "Since the announcement of the COE re-categorisation, we have seen a surge in showroom traffic. Customers are even coming in on weekdays. In fact, we even saw sales increase mainly in Cat A cars.

"Although there is a demand for Cat A cars, there are also people looking for Cat B cars at the moment, because they don't know what is going to happen after the policy sets in when all the current Cat A models are moved to Cat B, so people who are keen or ready to buy are going to buy now as well."

Customers said they are likely to buy now, as the cars they are eyeing could cost more once the new rules kick in.

The changes were made after several months of public consultation to better ensure elements of social equity in car ownership.

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And just as expected, the car showrooms are packed with the rich buyers looking to loot a Cat A luxurious car one last time before they get shifted into the Cat B COE. With Volvo models going for discounts between 20-30k, I admit that it is quite a draw. However, take a step back and think.

If the demand rises, the COE bidding price will follow suit, and that will mean a rocketing Cat A COE, which somehow defeats any purpose of a discount isn't it? If a Cat A COE is 90k whereas a Cat B COE is 70k, the discounts will be all wiped out. Does it means these >130BHP cars will be cheaper now as compared to after they're shifted to Cat B? Not exactly so.

Luxury car dealers look for ways to clear stock

Some luxury car dealers are gearing up to lure buyers to their showrooms, beginning this weekend, in a bid to clear stocks of vehicles that will be reclassified as premium models from next February.

The move follows changes in the certificate of entitlement (COE) system, announced on Monday, in which a car's engine power will be included as a new criterion. Cars with over 130bhp or an engine exceeding 1,600cc will fall into Category B.

Dealers planning to go on a sales drive include Volvo agent Wearnes Automotive, which is looking to sell models like the S60 and S80. These currently belong to Category A - which caps engine displacement at 1,600cc - but will be re-classified under Category B next year.

Mr Victor Kwan, managing director at Wearnes Automotive, said the dealership will start clearing its 1.6-litre engine cars with "aggressive pricing".

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Are you heading for the Volvo showroom this weekend? The S60 and S80 both sport a 1.6L engine but have a humongous 180bhp under the hood. In any case, with aggressive pricing comes the demand. Expect the Cat A COE to spiral upwards.

Top supplier of car parts concerned over new COE criterion for Cat A

In a rare move, one of the world’s leading suppliers of automotive components, Robert Bosch (South East Asia), has voiced its concerns about the Land Transport Authority’s (LTA) move to layer on engine power capacity in the classification of small cars for the Certificate of Entitlement system.

Asking the LTA to “reconsider” the new criterion for Category A cars, the company outlined two “unfavourable outcomes” from the tweak, which was announced on Monday and will be implemented in February.

First, manufacturers and dealers will bring into the market cars with “outdated technologies”, which are less fuel-efficient and will emit more carbon dioxide.

“This is a regressive step towards meeting the Singapore Government’s target of lowering overall carbon emissions by 11 per cent (potentially 16 per cent) by 2020,” Bosch said in a statement.

Second, it argued, manufacturers may try to meet the new 97 kilowatts criterion for cars with engine capacities of 1,600cc by curbing engine power output to pass pre-registration inspection tests. This could be done by encoding a limiter within the engine control unit of the vehicle.

Said Bosch: “This limitation can be easily removed after the vehicle leaves the showroom and is not easily detected during mandatory vehicular checks.”

It added: “Introduction of engine power into the COE system favours old technologies and is detrimental to the quality of life for Singaporeans, as it does not achieve a reduction in emission levels.”

Speaking to TODAY, Mr Klaus Landhaeusser, Bosch’s Regional Head, External Affairs and Governmental Relations (South-east Asia), added that the new regulations may lead to more car owners choosing to illegally modify their cars by leveraging on technology to circumvent the limiter placed in the vehicles.

While there are already laws in place against such illegal modifications, Mr Landhaeusser said tracking the horsepower of a car requires a chassis dynamometer, which regular vehicle inspection companies do not have as engine power inspections are not required in regular vehicle checks.

He said: “This is a very expensive machine and … it is only available in workshops which do the tuning themselves.” Bringing in the chassis dynamo systems will add costs to inspection companies, he added.

When asked why Bosch is concerned about the criterion, Mr Landhaeusser said: “We are developing systems for all car manufacturers, whether it is new or old technologies. We also have a very strong lead when it comes to saving the environment.”

In response, the LTA reiterated that it will be implementing “pre-registration safeguards through its vehicle type approval process”. The authority said it will not approve car models which have maximum power output specification that is lower than the same models approved previously, or what has been declared in other markets.

“This will serve as a deterrent against anyone who tries to tune down the maximum power output of his car to qualify for Cat A,” it added.

TODAY understands that the LTA has also brought in chassis dynamometers for the inspection of vehicle engine power.

On car manufacturers bringing in models which are less environmentally-friendly, the LTA said carbon emissions are already accounted for under the Carbon Emissions-based Vehicle Scheme.

“Carbon emissions and fuel efficiency are not good proxies for the value of a car, and could end up penalising mass-market models,” said an LTA spokesperson. The authority also emphasised that it will “review the criteria every few years and consider if adjustments are necessary”.

Dealers TODAY spoke to felt that most owners will not choose to illegally modify their cars.

Singapore Vehicle Traders Association Honorary Secretary Raymond Tang said: “Most car buyers usually go for luxury or continental cars just for the brand name and the status that comes with it. They are usually not so concerned about engine power.”

Motor Traders Association President Glenn Tan also pointed to liability problems of illegally modifying cars. “If they do that, they void the entire warranty of the vehicle because they are forcing it to work outside the operating perimeters of the vehicle,” he said.

“Also, there is an insurance and product liability problem. If you tune it outside of what is promulgated, the insurance can choose not to cover your vehicle. If you kill somebody, there is criminal liability.

“Whoever tunes it illegally, be it the dealers or the consumers, they will have some hand in criminal liability and they have to bear this in mind as well,” Mr Tan added.

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So, the loopholes are covered by LTA. Cars with a different power rating as opposed to the official specs release will not be granted access to Singapore's market. Therefore, the prospect of down tuning car engines will not happen nor help the case.

Demand for used cars set to rise after changes to COE

The demand for used cars is expected to go up following changes to the Certificate of Entitlement (COE) announced on Monday.

The Singapore Vehicle Traders Association believes car buyers will consider buying used cars until the market stabilises.

Car dealers expect premiums in Category A and B to remain high -- at least until the changes in Category A kick-in in February next year.

Cars belonging to Category A must not have more than 130bhp of engine power. This is on top of the existing one that caps engine capacity at 1,600cc.

Dealers expect to see good demand for newer used-cars because these will still be more affordable than brand new ones. Used-cars that have a few more years left in their COE could also be popular.

Raymond Tang, honorary secretary of the Singapore Vehicle Traders Association, said: "Because of the changes, most consumers will be unsure what to do, what should they buy.

"I think the best way is to go in and buy a more stable car, aged, left with two years, three years, or four years and see what will be the situation in the market. And these range of cars they are very near to the paper value, and I think there is no risk for the consumer."

Before the changes take effect, industry players expect car agents to quickly clear some of their high powered-cars that are currently in Cat A. At the same time, consumers may also rush to buy a luxury Cat A car.

The used-car market took a hit in 2013 when the Monetary Authority of Singapore imposed loan curbs.

Under current rules that took effect in late February, used-car buyers can borrow only up to 60 per cent of the car's purchase price. The maximum period of the loan is also capped at five years.

Industry players said the re-categorisation of COE may prompt the entry of different car models to suit the new requirements. However, they doubt if more premium brand diesel models that typically have lower horsepower, may be introduced.

Mike Wee, owner of Mayfair Motoring, said: "Diesel cars at this moment is not that popular, because (in the past), you have to pay a road tax (which is several times higher).

"People are concerned next time if (the government) were to remove this benefit and the road tax may become five to six times higher. So, I think it's difficult for them to sell their cars."

An estimated 332 diesel cars were registered in Singapore last year. This is a relatively small percentage when compared with total new car registrations of nearly 28,000 in 2012.

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Highly doubt diesel powered cars will pick up in Singapore, but for bystanders waiting to get a car, I guess mostly will wait till Feb'14 to make their decisions. As for second hand cars getting more attention, most likely it is only the older ones which will be snapped up as they're relatively much cheaper.

Come Feb'14, the best selling Cat A car will probably be VW Jetta 1.4 TSI. With its 1.4L engine, it's able to produce 122BHP of power and an impressive 200Nm of torque. Higher OMV and having a better premium feel, it's a winner.

Changes to COE: Government includes car engine power to categorisation

As announced today by the Minister for Transport, Mr Lui Tuck Yew, the Land Transport Authority (LTA) has completed the public consultation on possible refinements to the Certificate of Entitlement (COE) system to better ensure some element of social equity in car ownership.

After careful consideration, LTA said it will retain the existing criterion for Category (Cat) A that the engine capacity of the car should not exceed 1,600 cylinder capacity (cc), and add a new criterion that the engine power of the car should not exceed 97 kilowatts (kW) (equivalent to about 130 brake horsepower (bhp).

LTA said it will not implement a surcharge on multiple car ownership, in view of concerns over its effectiveness and possible impact on larger households.

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The C180K and 116i will be facing a massive drop in sales coming Feb'14 going by this new rule. However, it is also possible for car makers to detune their cars to 130BHP or below. After all the hassle and discussion, more is expected from LTA. This change is probably not going to do much to the sky high COE prices. We shall see next Feb. For now, enjoy the rush of buyers going for the models listed above, creating a rocketing Cat A COE premium.

High COE prices seen driving small bus operators out of business

With the Certificate of Entitlement (COE) premiums for commercial vehicles reaching a new high on Wednesday, industry players say this is driving some small bus operators out of business.

And this may lead to a significant drop in the supply of school buses in the next few years.

In the latest COE bidding exercise, the premiums for commercial vehicles rose above S$71,000.

According to the Singapore School Transport Association, the COEs for some 1,000 school buses would be expiring in 2017.

That is because many school bus operators bought new fleets of vehicles or renewed their COEs when premiums plunged to as low as S$87 in 2007.

The association says if premiums continue to rise, it may be difficult for "single school bus operators" to cope, as they already face expensive oil prices and high insurance costs.

And with the Education Ministry's plans to make all primary schools single-session in 2016, this would mean the number of school buses would have to increase by 50 per cent by then -- causing a further strain on operators.

Wong Ann Lin, the chairman of the Singapore School Transport Association, thus suggests pulling school buses out of the commercial vehicles category in the COE bidding system.

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Record high for the commercial vehicle category COE is definitely not doing any good for the business owners. Such costs will either be pushed to the consumers resulting in inflation, or the business will simply go bust, especially with small transport operators in this case. Removing the need to bid for COE is not exactly a solution either as can be seen with what was done with the taxis in Cat A.

It is a great headache for everyone.

Loan curbs for used cars to stay for now: MAS

 It seems like the loan curbs for used cars are here to stay -- at least for awhile.

Despite representations from used car dealers, the Monetary Authority of Singapore (MAS) said on Wednesday that the financing restrictions remain relevant as it encourages financial prudence among consumers and exerts a moderating influence on COE prices.

Under current rules that took effect in late February, used-car buyers can borrow only up to 60 per cent of the car's purchase price, with the maximum period of the loan capped at five years.

The Singapore Vehicle Traders Association met MAS on Tuesday to call for a review of the curbs.

The association said many dealers are suffering, with business dropping by at least 50 per cent.

It is proposing that buyers be allowed to borrow up to 80 per cent of the purchase price, and for the loan to be serviced for up to eight years.

MAS said in a statement on Wednesday that it appreciates the feedback, emphasising that the financing restrictions are not permanent.

It also added that it will continue to monitor the situation and review the calibration of the restrictions in line with market conditions.

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Second hand car dealers will have to rough it out under the loan curb conditions, but the severity of the situation seems to be exaggerated as we all know how these dealers work. It will be good that the rogues close down for good.

Racing on AYE

Amazing stuff, when such a big group of highly tuned cars taking the expressway like a racing track. The red Honda Civic has got great balls and skills to have made that lane cutting maneuver.

HOWEVER, this is illegal. No matter how skillful you are, the rules of the road have to be obeyed at all times. By racing illegally on public roads, you're endangering yourself and every other road users' lives. Such actions must be condemn and the traffic police have to clamp down these racers.

How sending a "Brian O'Conner" as an undercover?

COE prices end higher across all categories

The gap in prices narrowed between big and small car Certificates of Entitlement (COEs) on Wednesday in the latest bidding exercise, as premiums rose across the board.

Wednesday's bidding is the first since an 8-per cent increase in COE quotas for the coming six months kicked in.

Premium for small cars went up by S$1,567 to S$75,556.

The COE price for big cars rose by S$1,211 to close at S$77,600.

The open category premium also increased S$1,187 to hit S$77,989.

The COE price for commercial vehicles saw the biggest jump of S$3,215 to reach S$68,251.

Motorcycle COE price went up by S$80 to end at S$1,792.

Car dealers Channel NewsAsia spoke with were not surprised by the price increases, and expect premiums to hover around this level in the months ahead.

Raymond Tang, honorary secretary of Singapore Vehicle Traders Association, said: "It's expected that (the prices in) all categories should be up, because the thing is that 8 per cent increase for the next six months is not enough to supply. COE of all categories have been suddenly moving up tremendously because of the demand for the new cars and that's why I think that it will still be going up."

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The demand for new cars is not letting down. It makes one wonder where did all these people come from huh? Having to afford a 40% downpayment in cash at least and financing the loan within 5 years.

Racing in KPE tunnel - Hyundai & Merc

What a close shave, looking like a scene out of the Hollywood movies. Great recovery by the Hyundai by the way. Good job in capturing these actions, the traffic police can better nab these reckless drivers with such an evidence.

Road Idiot - SFZ2848A

What do you think of such drivers in Singapore roads? Being totally impatient and full of rage. With the prominence of DVR, I would think most drivers will be more subdued. However it seems to be the opposite.

Used car dealers urge authorities to review car loans curbs

The Singapore Vehicle Traders Association which represents the interests of over 400 used car dealers here is renewing its call for a review on car loan curbs.

It said many dealers have seen sales drop by between 30 and 80 per cent since the 60-day reprieve period ended in early June.

Used car dealers sold most of their stock of about 7,000 cars during the 60-day reprieve period from April 6 to June 4.

Before the loan curbs kicked in, buyers used to be able to take up to 100 per cent loans for car purchases.

Now that they are unable to do so and dealers are feeling the pinch once again.

Raymond Tang, honorary secretary of Singapore Vehicle Traders Association, said: "In July, the situation is very bad. We have made a survey and majority of the dealers are not selling (well)."

Under current rules, buyers of both new and used cars can only get a loan of up to 60 per cent.

The loan period is capped at five years, down from 10 years.

Dealers said sales have also been affected by a smaller supply of used cars in the market as more people hold on to their cars.

Vincent Wong, director of First Automobile Premium, said: "We have actually experienced as much as a 30 to 40 per cent of depletion of sales and generally to us, it is quite an extensive impact. For the dealers to recover their stocks and replenish their stocks, it is quite difficult at this point of time.

Mr Wong added: "For many of these people, they are not able to change and so they are holding on to their cars. The dealers are also very careful in the valuation of cars. They cannot be buying too high and if they do, it will put themselves in a big financial difficulty."

The loan curbs were introduced to encourage financial prudence.

The Singapore Vehicle Traders Association said Certificate of Entitlement (COE) prices are still high in recent bidding rounds.

Prices for both small and big cars were over S$70,000 in the latest bidding round.

The association has proposed that used car buyers be able to borrow up to 80 per cent of loan which can be serviced over eight years. It said the move will help ease COE premiums.

Mr Tang said: "In this way, I feel that it might help to stabilise the COE premiums because they might pull a small group of people from buying a new car to the used car. If there is a small group of people coming over, that might also slow down the demand on the new car.

"Eighty per cent is quite a fair bit because in terms of used car, it is more towards the mass market and middle and lower income people. I think that telling them to fork out at one go of 40 to 50 per cent of down-payment is might be a very heavy amount for them."

The COE quota for the next six month period starting from August this year to January next year will be about eight per cent higher.

However, dealers said it will unlikely to have much of an impact and bring down COE prices significantly."

The association intends to submit its proposal to the Monetary Authority of Singapore this month.

SOURCE

I'm surprised these dealers are still alive to make some noises. After the 60-day rule suspension, I had expected them to fold up or switch to other automobile related business but they actually held on. And now they want MAS to look like a joke by further amending the rule. Will MAS give in? It will be interesting to find out the result of the appeal.

Honda to set up racing base in Milton Keynes

Japanese automaker Honda said it will build a European racing operations base in Milton Keynes ahead of its return to Formula One in 2015.

Honda said in May that it will return to the sport as an engine supplier to McLaren in a bid to revive their championship-winning partnership.

On Friday it said it will build a new facility in Milton Keynes that "will rebuild and maintain the power units developed at Honda (research and development) centre" in Japan.

"The UK is an ideal location; it is the home of McLaren, many F1 suppliers are UK based and with seven of the 19 races taking place in Europe (in 2013)," Honda said in a statement.

The Japanese automaker pulled out of F1 after the 2008 season, ending an involvement that began in the 1960s, to cut costs during the economic downturn that ravaged Japanese exports to the United States and Europe.

It sold its team to former principal Ross Brawn the next year.

A recent change in F1 rules, promoting the use of environmentally friendlier turbo engines, has made the comeback decision easier because Honda could readily transfer the technology to its commercial vehicles.

The McLaren-Honda alliance conquered F1 from 1988 to 1991 with Ayrton Senna and Alain Prost at the wheel.

Honda started racing in F1 as a full-fledged team in 1964, and stayed until 1968. During that time, it won two races.

Then, as a supplier of engines to other teams including McLaren, Williams and Lotus, it raced from 1983 to 1992 and won 69 races.

After an eight-year hiatus, Honda returned as an engine provider and then part-owner of the BAR team from 2000 to 2005. In 2006 it took full control and renamed it Honda.

SOURCE

Welcoming news from the Formula 1 scene after all the bad press about the safety issues regarding Pirelli tyres. Honda will not have its own team, unlike when it last pulled out of the sports in 2008. Instead, they will supply the turbocharged engines to teams like McLaren, one which they have past glories with in the late 80s and early 90s. It will be very interesting to see how Honda can help McLaren boost its position on the field.

Valets say cases of drunk patrons driving off are common

The scourge of drink driving looks like it is not going away any time soon, if The New Paper’s checks with valets at several nightspots are anything to go by.

Last weekend, we spoke to some of them at the Tanjong Pagar, Orchard Road and Boat Quay areas.

Five valets said it was not unusual to encounter clubbers who insist on driving themselves home, even when they had drunk too much.

Said a valet working in a club at Tanjong Pagar, who wanted to be known only as Mr Ameen: “We have customers who insist on driving themselves home after clubbing. I honestly don’t know why they take the risk. We charge them only $50 to drive them back, but if they refuse, we can only remind them that it is against the law as we can’t force them.”

Last year, the police arrested 2,917 people for drink driving.

This is a 6.6 per cent increase compared to 2,735 in 2011.

SOURCE

This is a very disturbing trend to reveal as we all know how drink driving can endanger other road users other than the driver himself. It is a very selfish act which should not be tolerated. It seems that people will only obey the law when they see the flashing red/blue lights.

More COEs to be made available from August 2013 to January 2014

More Certificates of Entitlement (COEs) will be available during the six-month period from August this year to January 2014.

The Land Transport Authority (LTA) said that it has set the quota at 20,825.

This is 1,562 more than the 19,263 made available from February to July this year.

For small cars, 728 COEs will be made available every month, up from 667 in the previous six-month period.

For big cars, the quota is 746 per month, up from 605.

The open category will have a monthly quota of 522, up from 476 in the previous six-month period.

For goods, vehicles and buses, 514 COEs will be available, up from 451.

The only category that will have fewer COEs is motorcycles. There will be 961, down from 1,012 in the previous six-month period.

On a monthly basis for all categories, 3,471 will be made available, compared with the previous quota of 3,211.

Bidding under the new quota will start with the August 2013 First Open Bidding Exercise.

The COE quota consists of several components:

• 0.5 per cent vehicle growth based on the vehicle population as at 31 December 2012
• Replacement COEs for vehicles de-registered between January and June 2013
• Adjustments for change in taxi population, expired COEs and over-projections of vehicle de-registrations in 2008/2009

SOURCE

A pretty small increase for the next 6months. I reckon this will not make much of a difference in the coming COE bidding prices. Demand for cars is still very high.

Hit & Run Lexus SGD5233H

It is a very serious offence to hit & run from an accident in Singapore. This accident further emphasize the importance and a need to install a in-car DVR to prevent the culprit from running away. Hopefully the driver of the video poster is alright and will get justice served.

India's Tata Motors revamps world's cheapest car

India's top automaker Tata Motors unveiled a new version of what was once billed as the world's cheapest car Wednesday, in a bid to reverse a slump in sales.

The jellybean-shaped Nano, which sold for around $2,200 when its first edition went on the market in 2009, has seen sales drop by more than 27 percent in the last year and Tata's recently-retired supremo admitted the car had an image problem.

The compressed natural gas(CNG)-fuelled version of the Nano unveiled on Wednesday is expected to hit showrooms within the next 90 days, the company said.

Tata Motors did not disclose the CNG Nano price, but said it would be announced soon.

"This (CNG) is the first major variant for the Nano since its launch," auto analyst Mahantesh Sabarad of Fortune Equity Brokers said.

Sabarad said the CNG version is being introduced to "give customers a better choice" but may take away its "affordability" tag.

It was not immediately clear whether the Nano would retain its title as the world's cheapest car.

In an interview shortly before his retirement last December, the company's long-time chairman Ratan Tata said it had been a mistake to market the Nano merely on its low-price, saying "various stigmas have been attached to it".

Sales of the part-plastic Nano fell 27.7 percent in the fiscal year to March 2013, to 53,847 units, according to company data.

Since its launch, the Nano has had several small makeovers -- including upgrades to its interior and a doubling of the warranty to four years.

The unveiling of the CNG Nano -- called E-Max -- was part of a mega launch by Tata Motors at its factory in Pune where it also introduced new versions of its existing Nano, the hatchback Indica and Sumo sport-utility vehicles.

The enhanced Nano -- with features like remote locking and sleeker interiors -- will cost upward of 150,000 rupees ($2,580).

In recent quarters, Tata Motors' earnings have been boosted by the performance of its luxury brands Jaguar and Land Rover, which have compensated for its weak domestic car sales.

Automakers in India have witnessed an unprecedented seven straight months of lower car sales, due to a slowing economy and a rise in the cost of raw material.

In May, Tata Motors' total domestic passenger vehicle sales fell 45.69 percent at 11,134 units, from levels a year earlier.

"The market has been bad in the past two months but since then there has been some improvements," managing director Karl Slym told reporters on Wednesday, according to the Press Trust of India agency.

Tata Motors bought Jaguar and Land Rover from Ford Motor Co in 2008 for $2.3 billion as part of plans to expand its reach beyond Asia.

The deal vaulted Tata Motors from a commercial vehicle and small-car maker into a global player whose portfolio includes luxury brands.

SOURCE

So, having a cheap price is not all it takes to sell a car successfully. Consumers nowadays have grown out of this pricing affair thingy. Right now, value for money is the way to go. It is better to pay a little more to enjoy the simple luxuries in the car. Tata is fast to learn their mistakes and is good that action has been taken to rectify it. Not all car making companies learn from their mistakes so readily. Tata is commendable.

Certificate of Entitlement (COE) prices rose across the board for all categories.

In the latest bidding exercise, the COE price for the open category experienced the biggest jump -- rising by S$7,001 to hit S$83,001.

The next biggest jump was in the big cars category, with premiums going up by S$6,751 to S$81,751.

The premium for small cars went up S$2,602 to S$69,903.

COE prices for commercial vehicles rose S$1,012 to hit S$59,001.

As for motorcycles, the COE price went up by S$11 to reach S$1,712.

From next month, the government will start imposing registration surcharges on cars with high carbon emissions under the new Carbon Emissions-Based Vehicle Scheme (CEVS).

Buyers of such cars will have to cough up between S$5,000 and S$20,000.

Motor traders said car buyers who wish to avoid the penalties are driving up COE prices in the latest bidding round.

Neo Tiam Ting, president of the Singapore Vehicle Traders Association, said: "The CEVS come in not only for Category B vehicles but for all vehicles, but Cat B vehicles will be affected more. Those in Cat B, those with high-capacity cars will be affected more, that's why the COE goes up more than A."

Motor traders said higher prices for big cars are also due to the perception that authorities will be fine-tuning the categorisation of COEs to further segregate higher-end models from cheaper ones.

Eddie Loo, managing director of CarTimes Automobile, said: "After the re-categorisation, I think it will put much more pressure on Cat B. So I think for the luxury cars, premiums will still be going up. Before they reach S$100,000, I think it is better to go into the market first."

The public has until July 7 to give their suggestions on ways to refine the COE system.

SOURCE

New rulings are forcing everyone to jump into the market now causing a relatively huge jump in premiums across the board. The Cat B buyers will be experiencing very high premiums until the rulings are finally in place. For now, let the figures rise.

Used-car dealers, small firms not jumping on car leasing bandwagon

Most used-car dealers and small motor firms Channel NewsAsia spoke to are not jumping on the car leasing bandwagon, despite bigger players getting in on the act since the authorities imposed borrowing limits on vehicle purchases.

They cite high costs of running a leasing business and unfamiliarity with how to do it as reasons.

Still, a few are eyeing the business model as an alternative to car sales.

Car leasing schemes are a mid-point between short-term rental and ownership, where you typically hold on to a vehicle for over a year and pay a monthly fee to use it.

The car goes back to the leasing company after that.

Not being stuck with a depreciating asset like a vehicle has drawn people to the scheme, plus the fact that a sizeable downpayment isn't needed.

The government's imposition of loan curbs means buyers have to foot a minimum 40 per cent downpayment for vehicle purchases.

Observers have noted that car leasing is one way of beating the curbs. Others call it an option.

Eddie Ho, general manager of Sime Darby Services, said: "It's not a way to beat the government's system but it's just another alternative for motorists to consider, because there's no way we can beat the system.

"Ultimately, leasing...to me is like another dish on the menu for the companies to sell."

Not all motor firms are keen on leasing, since much of the onus falls on the leasing company to keep leased vehicles in order.

Many companies simply don't have the resources to do it.

Still, some plan to capitalise on the opportunity.

CarTimes Automobile plans to starts a leasing arm in June 2013 while Yong Lee Seng Motor has been dabbling with leasing for around three years.

Raymond Tang, Yong Lee Seng's director, said: "The difficulty of doing it is that a lot of follow-up, a lot of support you need to give to these consumers. Or else, the consumers will not be happy...what happens if the car breaks down in the middle of the night? You must have workshop support."

Observers note that the government's "car-cooling" measures have shifted more attention to the leasing business, although it has been around in Singapore for over a decade.

SOURCE

A way to beat the system for aspiring "car owners". You can have a car but save the hassle of 100% owning the car. It's a viable option if one is unable to fork out the huge downpayment needed according to the new ruling by MAS.

69% of used cars eligible for full loans sold

About 69 per cent of used cars eligible for full loans have been sold as of 27 May since authorities lifted borrowing limits for buying those cars for 60 days.

This concession will last till Tuesday.

Motor firms are bracing for uncertainty thereafter.

Dealers whom Channel NewsAsia spoke with expect the market to be even quieter, with car loan curbs in full force.

To help used car dealers clear old stock acquired before new borrowing restrictions were introduced, a two-month concession was given. This meant that buyers could continue taking up to 100 per cent loan for vehicle purchases.

The concession applied to some 7,000 used cars. Over 4,800 have been sold so far.

Classic Credit had around 180 vehicles from old stock. About 170 have been sold, but customers remain cautious.

Andy Ong, sales consultant at Classic Credit, said: "It all depends, you see, on the customer preference - what they want. Because mostly for used cars, they are going for those budget cars. Talking about high-end, they should rather go for the new cars right? Because those people are those well-to-do families."

Prospective car buyer Clarence Pang said: "Actually, I'm just checking out the cars, just looking at the value… maybe if the price is good, (I will) get it, or if not, just hold on."

Freddie Yap, also a prospective car buyer, said: "I will never, ever sign any papers to buy a vehicle over S$100,000."

Dealers are not expecting things to get any better, especially when car loan curbs for used cars kick in.

Companies have been downsizing operations or have moved out entirely, due to slowing business. Yet, others will see opportunity.

Taking up empty spaces are commercial vehicle sellers as they are unaffected by loan curbs.

Kenson Goh, sales executive at Car Design, said: "Most car dealerships will actually shrink. From maybe about four fronts to maybe about one or two fronts only. So definitely, a lot of people are cutting costs."

To ease the situation, the Singapore Vehicle Traders Association hopes authorities can raise borrowing limits from 60 to 80 per cent. It said this will reduce downpayment obstacles preventing some from buying a car.

SOURCE

In a blink of an eye, 60 days is almost up, and 69% of the stock have been cleared. There are still a good 2000 of them unsold as of now I guess, so if you're still pondering on your second hand car purchase, I guess it's about time you head down and see if there's anything worth your dough.

The dealers should be slashing the prices or they might never be able to offload these 31% sitting in the showroom. The next COE bidding will be more interesting.

SMRT needs to carry out more stringent checks on rails: LTA

The Land Transport Authority said it will require SMRT to carry out more stringent checks and replace the running rails earlier where necessary.

It issued a statement following the fourth incident of a rail crack that has occurred on the North-South/East-West Line in recent weeks.

LTA said it is concerned and is investigating the root causes of the incidents.

During a joint news conference by the LTA and SMRT to address the issue of rail cracks, SMRT said that it has completed ultrasound checks on all rail joints in the system, and no other defects have been found.

As some of the cracks are symptoms of an ageing rail network, more may be expected in the future. However, LTA said safety of passengers will not be compromised.

Deputy chief executive of the LTA, Chua Chong Kheng, said: "This is because the signalling system that we have is designed to detect rail cracks, and when the rail cracks, it will be treated as though the track is occupied. Therefore, other trains are prevented or not allowed to come in to that area."

LTA added that it is too early at this stage to determine if there is any underlying link or systemic issues that contributed to these four recent rail cracks.

LTA also said SMRT, which operates the North-South/East-West Line, has a system of running rail replacement similar to the approach adopted by operators in other cities -- whereby individual running rail segments are replaced when there are defects, or when the wear and tear for that rail segment warrants it.

But due to the recent incidents, SMRT will be taking various precautionary measures. These include accelerating its rail replacement programme.

Lee Ling Wee, senior vice president of rail services at SMRT, said: "In the past, we used to wait until the wear is 14mm before we replaced the rail. Now, instead of 14 mm we are shortening it to 12 mm.

"This means we are replacing it earlier, and that would mean additional maintenance efforts. We are in discussion with LTA for resources that we will need to increase our capacity for replacing the rail."

These resources include additional workshops to pre-fabricated rails.

SMRT said it has identified 40km of rail which need to be replaced -- the Nort South-East West Line has a total of 400km of rail.

Mr Lee added: "If we do not increase our capacity, it may take up to five years to replace the rails, but if we do increase our capacity, we are hoping to reduce it to two years."

LTA said that although the rail network is ageing, a complete overhaul is not necessary.

Mr Chua said: "Now, because the rails do not wear at the same limit throughout the whole railway, some stretches will wear faster -- for example at curves. So therefore, the replacement must be done on a basis where there are instances of the wear limits.

"The other occasion where rail is required to be changed is where there are defects that are found. For example, where there are cracks or corrugations on the rail head or the rail surface."

The LTA said it is monitoring SMRT's remedial actions very closely. It is stepping up audits on SMRT's maintenance works -- up from monthly to fortnightly -- to ensure checks are done thoroughly.

LTA will focus its audits on the track curves, as the recent rail cracks have occurred along such stretches.

To better determine what further measures can be taken to address the situation, LTA will be appointing an international trackwork specialist to assess the condition of the rail and to advise on possible changes to the operator's running rail maintenance regime.

SOURCE

Not very assuring eh? A crack track is not one to be meddle with. Any physical defect with it will cause a derailment if serious, and if there is such a day in Singapore's history, it will be very ugly judging by how crowded are our MRT trains. The authorities will have to take this seriously and keep a very close watch on SMRT.

LTA looking at a fairer, more equitable ERP system

Motorists may be charged for the distance they drive, and not only at fixed points, under a next-generation Electronic Road Pricing (ERP) system being studied by the Land Transport Authority (LTA).

If implemented, the new ERP system — whose working name is ERP2 — will be “fairer and more equitable” to motorists, said Transport Minister Lui Tuck Yew yesterday.

He said: “ERP2 will give us the option of charging for congestion based on distance, and not only at discrete points. This will be fairer and more equitable to motorists as the charges will be proportional to the distance they travel on a congested road, in other words, proportional to how much they actually contribute to the congestion.”

Motorists driving the same vehicle type passing under an ERP gantry now pay the same rate, regardless of their distance travelled.

Under the new system, some motorists may pay more while others will pay less, depending on the distance they travel on the congested road, Mr Lui said.

The Transport Minister, however, stressed that the new system is still “several more years” from being rolled out. If it does, it will start off only on roads currently priced by the ERP system, and that it will continue to be used as a “congestion management tool” to be used “only where and when there is congestion”, he added.

ERP2 will not, he assured, be something that “charges the minute (motorists) leave home or start their engines” and drivers will “generally have the same paying experience”.

Mr Lui also noted privacy issues expressed by some Singaporeans and stressed that the Government would “safeguard the confidentiality of motorists”, such as by anonymising any data collected and developing privacy safeguards.

The new system, which uses global navigation satellite systems (GNSS) technology, works with an On-Board Unit (OBU), which will replace the existing In-Vehicle Unit (IU). The OBU will link up with the satellite systems to check how far a vehicle travels along ERP-active roads. This would detect if drivers use only 50m or 500m, and charge accordingly.

“As it makes do without large physical gantries, it will allow us to respond faster and more effectively to tackle congestion, and is also likely to be cheaper over its life cycle compared to the current system,” said Mr Lui.

Highlighting Singapore’s land constraints, the Transport Minister said during his visit to the Marina Coastal Expressway (MCE) yesterday that “it is unlikely that we will be able to build many more massive projects like the MCE”.

“Given the constraints to building more roads, we will need to rely even more on vehicle ownership and usage restraint measures to manage traffic congestion,” he said, but stressed that the Government will “take a balanced approach”. Public and stakeholder views will be welcomed, he added.

Singapore was the first country in the world to implement congestion pricing in 1974, and has served as a model for places such as London and Stockholm.

Experts welcomed the potential move, as they felt that distance-based systems to be one of the fairest in terms of addressing traffic congestion. Adjunct Associate Professor Gopinath Menon of Nanyang Technological University’s Infrastructure Systems and Maritime Studies noted there are three types of possible pricing systems to choose from — location, time and distance-based, of which the current ERP utilises the first.

Assoc Prof Menon, who was previously LTA’s Chief Transportation Engineer, pointed to how GNSS technology is used on Germany’s autobahns, the country’s national motorway. The key difference, he said, being autobahns is “toll-based”, while Singapore’s ERP system is “congestion-based”.

While a GNSS-based ERP system may face challenges here — such as losing satellite signals when driving underground or through high-rise buildings — these “can be overcome”, said Assoc Prof Menon.

Beacons could be embedded on lamp posts to help correct the signal, said Associate Professor Lee Der Horng of the National University of Singapore Department of Civil and Environmental Engineering, who noted that accuracy in urban areas “is the major limitation” to the system.

SOURCE

There you go, it is really happening; a GPS based ERP system, but only a few more years down the road. Let's not let this news cloud the main news of the Marine Coastal Expressway opening its roads by this year end. I for one can't wait to travel in it and skip the jam plus hassle of going up the Sheares Bridge just to get to AYE from KPE. 

This should be able to relief some traffic volume on the ECP along the stretch of road and less cars will be using the Rochor exit now that the MCE provides an alternative exit to the Marina City area.

Driver who blocked ambulance fined $160, incurs 4 demerit points

The driver of a blue Honda caught on camera for refusing to give way to a private ambulance has been penalised by the Traffic Police.

Deputy Prime Minister Teo Chee Hean said in a written reply to Arthur Fong, MP for West Coast GRC, that the driver has fined $160 dollars, and incurred four demerit points to his driving record.

The driver of the Honda was captured on video refusing to give way to an ambulance, despite the ambulance's blaring siren and flashing red lights.

The video was taken on Mar 14, and uploaded to YouTube a day later. It then went viral on the Internet.

In the video, a blue Honda car is seen staying on the right lane in front of an ambulance. Even as the two vehicles drove down the Pan-Island Expressway (PIE), the blue Honda stayed in front of the ambulance and did not give way.

Later, the ambulance driver slowly filtered left and edged out to the neighbouring lane. The ambulance driver then wound down the window and started gesturing towards the driver. He then drove off rapidly after that.

A Stomp contributor said what the driver did was illegal, according to the Public Order Act.

The contributor wrote:

"Under the Public Order Act, Chapter 257A, Part II: Public assemblies and processions. #18 Obstruction to free passage of any ambulance states that the person shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 6 months or to both."

SOURCE

Good job done by the authorities. Such actions should never be pardoned. Singaporean drivers are an ungraceful bunch, even when it's an emergency vehicle at its mercy.

More gantries on AYE by mid-2014

To further ease traffic congestion, the Ayer Rajah Expressway will have four more ERP gantries come mid-2014.

Three new gantries towards the city between Jurong Town Hall Road and Clementi Road will be operational during the morning and evening peak hours on weekdays.

The first gantry will be located just before Clementi Avenue 6 exit, while the other two gantries will be located at the slip roads into AYE from Clementi Avenue 6 and Clementi Avenue 2.

The fourth gantry located just before the Clementi Road exit towards Tuas (between North Buona Vista and Clementi Road) will be operational only during the weekday evening peak hours.

The Land Transport Authority said over the past one and a half years, traffic speeds at both locations have dipped, going as low as 35 kilometres per hour.

This is below the optimal speed range of 45 to 65 kilometres per hour for expressways.

Traffic conditions along the corridor are also expected to worsen when traffic demand goes up with future developments such as the Jurong Gateway.

Construction of the ERP gantries will start in the later part of this year.

LTA said it will announce the operating hours and charges closer to the implementation of the gantries.

LTA said motorists who wish to avoid paying the ERP charges can make use of alternative routes including the West Coast Highway and Commonwealth Avenue-Tiong Bahru Road corridor.

Public transport alternatives in the west will also be ramped up for motorist who wants to make the switch.

From the third quarter of 2013, commuters in Jurong West will have a City Direct bus service during peak hours.

LTA is also looking at having a similar service from Clementi.

SOURCE

Another reason for westsiders to cry about this time next year when four new gantries will be erected to charge you for contributing to congestion. The result will be pushing more traffic to Westcoast Highway and we shall see how long will LTA take to erect a gantry there just like what they did to Nicoll Highway. Happy paying, drivers.

Car camera could lower motor premiums

Motorists who install video-recording devices in their vehicles could get discounts on their motor insurance premiums.

This possible incentive is being studied by a working group formed by the Traffic Police and the General Insurance Association (GIA).

Both see the move as a way to encourage better behaviour on the road, Traffic Police Commander Cheang Keng Keong told The Straits Times this week.

Improving driver behaviour, he said, was key to lowering accident rates.

SOURCE

I don't see encouraging better behaviour working even with cameras mounted. It will just serve as an evidence for the stunts such drivers resort to to claim insurance when it is actually their fault.

Multiple-car owners may face surcharge, COE system to be refined

To spread car ownership more evenly, the government is considering levying a surcharge on individuals who wish to own more than one car.

Engine power could also be factored into the categorisation of cars under the Certificate of Entitlement (COE) system.

Transport Minister Lui Tuck Yew spoke about these suggestions when he visited the site of the upcoming Marina Coastal Expressway on Thursday.

The current COE categories are based on engine capacity.

Traditionally, mass-market cars (small cars of 1,600cc and below) are in Category A.

But the car industry has evolved, and now higher end options are also in that category.

Such luxury cars took up about a third of Category A registrations last year, compared to just 7 percent in 2010.

Mr Lui said: "Models such as Mercedes C180 Kompressor and Audi A1 have an open market value and engine power that is significantly higher than those of more mass-market models such as Toyota Corolla Altis and Honda City.

"While this is a reflection of increasing affluence and consumer preferences, we also want to make sure that Category A, which is intended for buyers of smaller budget cars, retains its original purpose."

Hence, to better delineate Category A, engine power - which determines the performance of the car - could be used as an additional criterion.

Honorary Secretary of the Singapore Vehicle Traders Association Raymond Tang said that categorising COE on engine power alone will be fairer to buyers from the middle income groups.

He said: "Cars, for instance MPVs, Honda Stream, Toyota Wish, they are in Category B because of their cc (cubic centimetres).

"But in terms of their horse power and in terms of (buyers), it should be for those lower and middle income people. So if they are in Category B, it causes a stress to them, because they are challenging those 'big boys'."

Another option is to have an individual who wants to own a second car or more, fork out more cash upfront on top of COE.

Mr Lui said: "I am open to considering sensible options that could possibly take the form of, for example, levying a surcharge for the second, third or more cars owned by the same individual.

"The rationale would be that in exchange for the privilege of owning several cars, these owners should pay proportionately more by way of levies."

Mr Lui acknowledged that there are downsides to such a policy.

For example, some owners could circumvent the rule by registering the car in the name of a relative or family member.

If implemented, the surcharge will not apply to existing multiple-car owners. Commercial vehicles and motorcycles will also not be affected.

The public and industry players will be consulted on the proposed changes, before a decision is made later this year.

SOURCE

Changes to the COE system has been long overdue, especially now that the luxurious brands are spreading its range of cars into the Cat A sector. With less than 10% in 2010, luxurious brands now cover close to half of Cat A bidders. That is a big cause for concern as Cat A is supposedly catered for less budget car buyers.

Another change is charging extra for individuals owning more than one vehicle. Well, if he/she is rich enough to own more than one car, what is this extra cost to him?

Rocky road for electric car market

The road has gotten bumpier for electric cars.

Coda Automotive, one of what had been a promising crop of electric car startups, filed for bankruptcy protection this month, and said it would reorganize around the electric storage market.

High-end electric car maker Fisker Automotive, which has had financial woes for months, announced meanwhile it was laying off 75 percent of its workforce, raising the prospect of defaulting on US government loans.

Electric cars are still coming to market from luxury maker Tesla, and from major automakers such as General Motors, Nissan and others, but the outlook has become murkier.

Analysts are divided on the outlook, but few believe President Barack Obama's goal of getting one million electric cars on the market by 2015 will be met.

"It's not like people are clamouring for these vehicles," said Rebecca Lindland, analyst with Rebel Three Media, and member of a committee studying barriers to electric cars for the National Academy of Sciences.

Lindland said her view that Americans "just don't see how an electric car can fit into their lifestyle. We continue to be risk-averse in investing in new technology in our cars."

Mike VanNieuwkuyk of the research firm JD Power & Associates said more people are aware of the electric cars on the market "but there is still a low number of consumers who say they would purchase an electric car."

A report by JD Power and its partner LMC Automotive found battery-powered vehicles' share of US auto sales was just 0.08 percent in 2012, and predicts this will reach only 0.47 percent by 2015.

Only about three percent in the survey said their next vehicle would likely have a battery-electric powertrain.

VanNieuwkuyk said consumers are held back by a lack of plug-in charging stations, concerns about the range of the vehicle before it needs recharging, and especially the high cost.

At the same time, the analyst said, gasoline-powered cars "are improving enough to meet the needs of the consumer," without the price tag of electric cars.

Jason Kavanagh, engineering editor at the research firm Edmunds.com said recent surveys suggest pure electric vehicles are unlikely to get past one percent of the US market, even by 2040.

The lack of range and long recharging times are key factors.

"Sitting around for eight hours waiting for your (Nissan) Leaf to charge up is not exactly a selling point," he said.

More importantly, said Kavanagh, is that the US electric power system cannot support large numbers of electric vehicles which need constant charging.

"The US power grid is not capable of supporting that," he told AFP. "You would need a multitude of small nuclear power stations to support that recharging."

Chevrolet cut production of its Volt last year amid soft demand, and is reported to be working on a less expensive version. Toyota and Honda also scaled back plans for all-electric vehicles for the US market.

Chrysler chief executive Sergio Marchionne said recently the company stands to lose $10,000 on every battery-powered Fiat 500 it sells in California.

There are a few bright spots, however.

Tesla Motors posted its first-ever quarterly profit, of $11 million in the first quarter as revenues rose 83 percent from the prior quarter.

Tesla is banking on its Model S, which sells for upwards of $60,000, by offering special financing and leasing deals with a guaranteed resale price. The car, which has an estimated range of more than 200 miles (320 kilometres), was given a top rating by Consumer Reports.

Nissan has boosted sales of its all-electric Leaf to over 5,000 in the first quarter, overtaking the Chevrolet Volt, which has seen sales sputter.

Brett Smith, analyst at the University of Michigan's Centre for Automotive Research, said he is not surprised by the slow progress in the electric car market.

"There was enormous electric vehicle hype," he said. "In a way that was good because it helped push the technology."

Smith said it is clear that battery-powered cars "are not a near-term mainstream product" but still believes in the value of the technology.

"There is a pretty good chance something positive will come out of this," Smith told AFP.

"Whether or not we get a cost-competitive electric vehicle in the next 10 years, the good news is there is lot of development which crosses over to other vehicles."

Kavanagh of Edmunds.com said beneficiary of the trend will likely be hybrids, which use both gasoline and electric power, and charge during driving.

"We're going to see a big jump in hybrids, which can take advantage of the infrastructure we have," he said.

Kavanagh said he expects hybrids may become more attractive in the coming years "because they will become more capable in range and more cost-effective."

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As always, the disadvantages of electric cars continue to plaque its practicality on real environments and it is putting a strain on car makers, questioning them hard on how are they going to find solutions for them. Right now, there is none.

URA expands Tanjong Katong Road car park

The parking crunch at Tanjong Katong Road has been eased after URA expanded parking space in the area. This is in response to requests for more parking lots to be provided.

The expanded Tanjong Katong Road car park is temporary as the space is on vacant state land, which is being reserved for future development.

Previously, the car park had 75 lots. Another 51 lots have been added, bringing the total number of lots to 126.

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Some added lots to ease the parking problems of driving food hunters. Indeed, finding a space to park the car is a pain in this area, ended up many resort to parking illegally and jamming up the roads.

COE prices for vehicles close mixed

Certificate of Entitlement (COE) prices for vehicles closed mixed on Wednesday in the first bidding exercise for May.

The COE for smaller cars continued to rise, surpassing that for bigger cars.

The COE premium for small cars rose S$502 to end at S$62,999, while that for the Open Category also increased by S$301 to S$62,301.

However, the premium for big cars above 1,600cc dropped to S$61,700, down S$300.

Meanwhile, the COE price for commercial vehicles fell S$1,451 to end at S$57,051.

For motorcycles, the premium dipped S$91 to S$1,700.

Since the car loan restrictions came into effect in February, COE prices have been generally on a downward trend.

Car dealers Channel NewsAsia spoke with said premiums are expected to dip further in the next bidding exercise.

Cobin Ng, manager of Leco Automobile, said: "(They) should drop further because it's back to the shorter week, two-week bidding. So hopefully (they) could drop another 5-10 per cent."

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No big surprises here with the small changes in COE premiums. Shall wait till the 60 days is over before anticipating anything big.