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Next COE quota to expand by 5.3%
THE Certificate of Entitlement (COE) quota will increase to 11,932 from next month, or 5.3 per cent, with the additional 601 COEs mainly for the small car, big car and open categories.
From November 2014 to January 2015, there will be an extra 253 COEs in Category A - for cars below 1,600 cc or 130 hp - each month to 1,396 or a 22.1 per cent increase compared with the current August to October 2014 quota.
Cat B - for cars above 1,600 cc and 130 hp - get 1,138 or 128 COEs more for a 12.7 per cent increase, while Cat E - the open category - will enjoy 527 or 10.3 per cent higher.
But Cat C - for goods vehicles and buses - is set to contract sharply by 45.2 per cent from 515 to 282 COEs due to the success of the Early Turnover Scheme (ETS). This translates to a whopping 233 fewer Cat C COEs each month.
Under ETS, the owner of an existing commercial vehicle is not required to bid for a COE and instead pays a pro-rated COE based on the prevailing quota premium. This means each commercial vehicle registered under ETS reduces the number of COEs available in the following quota.
The number of COEs in Cat D - for motorcycles - will be marginally higher - by three COEs, to be exact - at 634 or a 0.5 per cent rise.
The Land Transport Authority takes into account three factors when determining the COE quota:
The 0.5 per cent per annum vehicle growth rate based on the vehicle population as at Dec 31, 2013;
The replacement COEs for vehicles deregistered in the preceding three-month period; and
The adjustments for changes in the taxi population, expired COEs and over-projection of vehicle deregistrations in 2008/2009.
From February 2015 to January 2018, the annual vehicle growth rate will be cut to 0.25 per cent, with a review in 2017.