LTA figures show more people are increasingly opting for off-peak car scheme

A small but increasing number of car buyers and owners are opting for the off-peak car scheme, even as the overall population of red-plated vehicles on the roads continues to shrink, reported The Straits Times.

As of July this year, there were 33,969 off-peak cars, a 22 percent drop from the 43,370 in the same period two years ago. They currently account for just 5.8 percent of the 585,384 private cars on the roads.

However, the number of new registrations for off-peak cars is picking up, figures from the Land Transport Authority (LTA) showed. In 2013, there were just 131 new registrations. This increased to 203 last year, and there are already 345 new registrations in the first seven months of this year.

National University of Singapore Transport Researcher Lee Der Horng said it is likely that the off-peak car scheme becomes more appealing when Certificate of Entitlement (COE) prices fall. The is because the scheme's rebate - which can be used to offset the COE price and additional registration fee in buying a new car - is fixed at $17,000.

"Imagine if the COE is $87,000; this means the buyer still has to pay $70,000 with the rebate. This may be beyond what potential buyers, especially those considering an off-peak car, can afford," said Dr. Lee. "Assume the COE is $57,000; then (the payment is) $40,000. This may feel more affordable."

But it is not just new car buyers who are driving up the registrations for the off-peak car scheme. First Vice-President of the Singapore Vehicle Traders Association, Mr. Raymond Tang, said, "There's a trend of people buying used cars and registering them as off-peak cars, so they can defray costs." Under the scheme, owners who convert their normal cars to an off-peak one can receive a cash rebate of up to $1,100 every six months, and a flat discount of up to $500 on annual road tax. Mr Tang estimates that about 10 percent of second-hand buyers are doing this.