Off-peak cars lose appeal due to high COE prices

The Straits Times reported that population of off-peak cars in Singapore has fallen by nearly one-fifth in the last four years. Rising COE prices have increased costs of car ownership, which in turn cause off-peak cars to lose their appeal.

Figures from the Land Transport Authority showed that there were 40,438 off-peak cars as at June this year, a tumble from 50,040 in December 2010. 

Only 61 off-peak cars were registered in the first half of this year, down from 81 in the same period in 2013 and 304 in the year before.

Experts said that the scheme has to be revised to remain attractive to car buyers.

Currently, motorists are granted a discount of $17,000 on a new off-peak car, and a $500 discount on annual road tax. Off-peak cars can only be used before 7:00am and after 7:00pm on weekdays. An electronic day licence that costs $20 can be purchased to drive during restricted hours.