Originally posted by wuming78:
With the steady fall of COE prices, the $17,000 rebate for
the red plate is now proportionately larger, so sales are up
By Christopher Tan
OFF-PEAK cars, those red-plated vehicles which can be used only
during certain hours, are making a comeback.
Last year, 920 of them were sold, nearly double that in 2002 and
the highest number in a year since the scheme started in October
1994. At the end of last year, there were 2,644 in all on the
road.
Car traders reckon that the gradual but steady decline of
certificate of entitlement (COE) prices could be the main reason
for the latest surge in off-peak car sales, since [b]the $17,000
rebate accorded to such vehicles becomes proportionately larger
with lower COEs.
For instance, a Toyota Corolla at the current COE is going for
$72,000. A $17,000 rebate would mean a 24 per cent saving. In the
mid-1990s, a Corolla was selling for as much as $110,000. Then, the
rebate would have meant only a 15 per cent reduction.
Car COEs are currently at their lowest in five to seven years.
Other upfront taxes, like additional registration fee (ARF) and
excise duty, have also been on the slide.
Dealers say it is an affordability issue.
Mr Marcus Ang, marketing manager of Hyundai agent Komoco Motors,
said: 'Take our Hyundai Accent, which is retailing at
$54,888. After the $17,000 rebate, that's $37,888. Imagine how
cheap a new car can be.'
Off-peak cars attract significantly lower road taxes too.
It is $50 per year for a 1.3-litre Accent, compared with about $750
for a normal car. 
Nearly 40 per cent of those who bought off-peak cars last year
picked a Hyundai. They also went for other budget buys by Kia,
Daewoo, Toyota, Nissan and Mazda.
The catch of course is that such cars can be driven only from 7pm
to 7am on weekdays; and after 3pm on Saturdays and the eves of
major public holidays. They can be driven the whole day on Sundays
and public holidays.
Should owners want to drive outside these hours, they have to buy a
$20 day coupon.
The off-peak car scheme replaced the weekend car scheme, which was
introduced in 1991 to make cars more affordable.
But the weekend scheme favoured buyers of bigger cars because it
had its own COE category, which often had much lower premiums. It
ended up encouraging a proliferation of red-plated luxury cars like
Bentleys, Jaguars and Mercedes-Benzes.
Back then, 2,500 to 2,800 weekend cars were sold a year, mostly
large vehicles.
When the rules changed in 1994, so did the trend. Immediately,
sales of such cars fell - until a few years ago.
Meanwhile, the Land Transport Authority is reviewing the
$800 fee levied on those who want to convert their off-peak cars to
normal ones. Converting a normal car to an off-peak one costs
$100.
-ST
[/b]
i m quite tempting with the rebate given.it sound good for
me.coz if i bought a off peak car,while having a car van too,it
benefit me it a way.while in the daytime,i drive my van,in the
evening,i drive my off-peak car.its cheap to buy after the $17,000
rebate.
moreover,no need to worry abt ERP. 