Divide current COE system into 3 different type of biddings.
Basically to cater for those rich ppl who can afford to buy any car as well as giving middle income ppl to have the similar chance of purchasing a car. Of course car buyers have to be realistic in term of finance affordability.
Part of my new suggestion will quite similar to ballot for HDB flat.
Scheme A
Ballot for COE based on highest bidding as of the current scheme but will consist only 50% of car quota allow on the road.
These group of COE will be mainly to cater for rich ppl who can afford any car or higher middle income group ppl who can afford better car than average car.
Restrictions and additional charges on this group of COE :
1 ) Only allow to purchase 1.6 litres and above car or performance car ( including those under 1.6 litres )
2 ) Extra tax based on car emissions of the car
3 ) COE period to remain at 10 years with possibility of renewing COE
Scheme B
Ballot quite similar like hdb ballot and will be mainly based on luck and is based on 30% of car quota allow on the road.
These group of COE will be mainly to cater middle income ppl who can afford to buy average car :
Restrictions and on this group of COE :
1 ) Only allow to purchase 1.6 litres and below non turbo charge car.
2 ) COE period to remain at 10 years and not allow to renew COE.
3 ) In the event even if quota for Scheme A/C is not fully bidded, it should not be transferred to Scheme B as to discourage for ppl to try their luck at scheme B when they can afford to bid under Scheme A/C.
4 ) Admin charges for every bid in Scheme B as a revenue for gov.
Scheme C
These 20% of car quota allow on the road are confirmed COE mainly to cater for super rich ppl.
Restrictions and additional charges on this group of COE :
1 ) Only allow to purchase performance car with 2.4 litres and above
2 ) Extra tax based on car emissions of the car
3 ) COE price will be based on certain % of the car price or a fixed rate set by gov whichever is higher.
4 ) COE period to remain at 10 years with possibility of renewing COE
Road tax charges will remain as what it is now.
All car buyers will need to come out at least 30 to 40% of the car price in cash and a bank loan period of not more than 7 years to prevent anyone from overstretching their credit and for those who really are able to afford a car.
So as above, the rich ppl who cant wait to ballot for zero value CEO and can afford to bid for COE, they can go for Scheme A.
However they can choose to go for Scheme B since everyone is based on luck and not allow to buy performance car ( <1.6 litres car ) so unlikely ppl who is cash rich will want to get an average car.
In this way, middle income ppl are still have a chance to get a car in their life time.
COE biddng results will still be based on every quarter releasing total quota and number of bids for transparency and with the possibility of adjusting 50 -30 - 20% ratio depending on the number of bids for each scheme.
Basically to cater for those rich ppl who can afford to buy any car as well as giving middle income ppl to have the similar chance of purchasing a car. Of course car buyers have to be realistic in term of finance affordability.
Part of my new suggestion will quite similar to ballot for HDB flat.
Scheme A
Ballot for COE based on highest bidding as of the current scheme but will consist only 50% of car quota allow on the road.
These group of COE will be mainly to cater for rich ppl who can afford any car or higher middle income group ppl who can afford better car than average car.
Restrictions and additional charges on this group of COE :
1 ) Only allow to purchase 1.6 litres and above car or performance car ( including those under 1.6 litres )
2 ) Extra tax based on car emissions of the car
3 ) COE period to remain at 10 years with possibility of renewing COE
Scheme B
Ballot quite similar like hdb ballot and will be mainly based on luck and is based on 30% of car quota allow on the road.
These group of COE will be mainly to cater middle income ppl who can afford to buy average car :
Restrictions and on this group of COE :
1 ) Only allow to purchase 1.6 litres and below non turbo charge car.
2 ) COE period to remain at 10 years and not allow to renew COE.
3 ) In the event even if quota for Scheme A/C is not fully bidded, it should not be transferred to Scheme B as to discourage for ppl to try their luck at scheme B when they can afford to bid under Scheme A/C.
4 ) Admin charges for every bid in Scheme B as a revenue for gov.
Scheme C
These 20% of car quota allow on the road are confirmed COE mainly to cater for super rich ppl.
Restrictions and additional charges on this group of COE :
1 ) Only allow to purchase performance car with 2.4 litres and above
2 ) Extra tax based on car emissions of the car
3 ) COE price will be based on certain % of the car price or a fixed rate set by gov whichever is higher.
4 ) COE period to remain at 10 years with possibility of renewing COE
Road tax charges will remain as what it is now.
All car buyers will need to come out at least 30 to 40% of the car price in cash and a bank loan period of not more than 7 years to prevent anyone from overstretching their credit and for those who really are able to afford a car.
So as above, the rich ppl who cant wait to ballot for zero value CEO and can afford to bid for COE, they can go for Scheme A.
However they can choose to go for Scheme B since everyone is based on luck and not allow to buy performance car ( <1.6 litres car ) so unlikely ppl who is cash rich will want to get an average car.
In this way, middle income ppl are still have a chance to get a car in their life time.
COE biddng results will still be based on every quarter releasing total quota and number of bids for transparency and with the possibility of adjusting 50 -30 - 20% ratio depending on the number of bids for each scheme.