Pay as you bid COE

[klkang]

This just came in at the currently broadcast 9.30pm news on Pay as you bid COE system. I think this system makes a lot of sense. If you want the COE, you give it a value. If you want it badly, you bid higher and you pay according to what you bid.

But an "expert" commented on the news that this is not an efficient system. This is what Prof Ng Yew Kwang - Division of Economics, NTU says.

"Under the Pay As you Bid system , everyone must underbid, and then different people have different psychology. Some underbid by a lot, and some underbid by less. Then the item may go to the wrong person, to the person who may not value it very highly"

Can I ask for help here - what exactly is this expert saying????

Is he saying COE must be valued highly so that it goes to the right person?? Funny expert leh!!

 

[kingrant]

The Pay as you bid will work only if you the count down to the quota starts from the highest bidder, not the lowest bidder. So the Professor is wrong, since he may be thinking the quota is counted upwards from the lowest bidder.

E.g. if the quota is for the first 5 successful bids for sake of argument, and the bids are $100,000, $85,000, $50,000, $23,000, $10,000, $9,800, $1000 and $500. Then the successful bids are $100K, 85K, 50K, 23K and 10K. So if you underbid at <10K, you will miss the boat.

If the quota is counted from the lowest bid, then the successful bids are $500, 1000, 9800, 10000, 23,000. So next time people might want to bid below $500 even. Then the Prof is right. It will not encourage realistic bids that reflect the state of want.

The PAYB system will be better. It will make bids more realistic. See the guy who bid $100,000 will have to pay $100,000 when $10,000 could have secured the COE. He ends up overpaying by $90,000! Next time, he will not be too garang.

 

[Narong Wongwan]

Underbid means less money in leegime's coffers la.
I've been advocating this for the longest time.
Owners bud themselves also and cut out dealers from budding exercise.
Expect to see fireworks in the open category for those buyers who buy supercars where money no object.

 

[The_Hypocrite]

i have been advocating a pay as u bid scheme for yonks,,of course who am i to think anyone will take notice?

The point was when COE was at 100k..i questioned, what was the max bid? which means someone must have but in a 150K bid. correct?

The pay as u bid scheme is easier in a sense that it will take into account the number of COEs available. for example next month will have 1000 coe's. So the highest 1000 bids will get it. The beauty of it is the clown that put in the coe for 150k will pay 150k...and the next bid is 50K...that chap pay 50k.

Now to give the middle class and families a chance to have a car, I recommend that the luxury car category be introduced. That means if u bid for a BMW 7 series etc,..it will fall under luxury and that is where the tax is doubled. the rich have no probs paying 1 million for a luxury car...the tax can be used to enhanced the road networks etc...that way these luxury car segment will not canibalised on the 'everyday' car segment...

just my rants...

The Pay as you bid will work only if you the count down to the quota starts from the highest bidder, not the lowest bidder. So the Professor is wrong, since he may be thinking the quota is counted upwards from the lowest bidder.

E.g. if the quota is for the first 5 successful bids for sake of argument, and the bids are $100,000, $85,000, $50,000, $23,000, $10,000, $9,800, $1000 and $500. Then the successful bids are $100K, 85K, 50K, 23K and 10K. So if you underbid at <10K, you will miss the boat.

If the quota is counted from the lowest bid, then the successful bids are $500, 1000, 9800, 10000, 23,000. So next time people might want to bid below $500 even. Then the Prof is right. It will not encourage realistic bids that reflect the state of want.

The PAYB system will be better. It will make bids more realistic. See the guy who bid $100,000 will have to pay $100,000 when $10,000 could have secured the COE. He ends up overpaying by $90,000! Next time, he will not be too garang.

 

[The_Hypocrite]

good point too,,must bar car dealerships from bidding for coe,,,

Underbid means less money in leegime's coffers la.
I've been advocating this for the longest time.
Owners bud themselves also and cut out dealers from budding exercise.
Expect to see fireworks in the open category for those buyers who buy supercars where money no object.

 

[klkang]

The Pay as you bid will work only if you the count down to the quota starts from the highest bidder, not the lowest bidder. So the Professor is wrong, since he may be thinking the quota is counted upwards from the lowest bidder.

E.g. if the quota is for the first 5 successful bids for sake of argument, and the bids are $100,000, $85,000, $50,000, $23,000, $10,000, $9,800, $1000 and $500. Then the successful bids are $100K, 85K, 50K, 23K and 10K. So if you underbid at <10K, you will miss the boat.

If the quota is counted from the lowest bid, then the successful bids are $500, 1000, 9800, 10000, 23,000. So next time people might want to bid below $500 even. Then the Prof is right. It will not encourage realistic bids that reflect the state of want.

The PAYB system will be better. It will make bids more realistic. See the guy who bid $100,000 will have to pay $100,000 when $10,000 could have secured the COE. He ends up overpaying by $90,000! Next time, he will not be too garang.

That is exactly my point. A professor on TV giving comment on such an important issue in S'pore - wow someone need to remind him he did not get it correctly !!

anyone I am in favour of PAYB as well. In fact, those with multiple car have to pay more too, the news mentioned earlier that there is an argument on whether the limit should be impose by household or members - I say by family nucleus lor - each married couple or those ready to get married such as 21 and above- one car lor.

 

[eErotica69]

Pay as you bid will not under bid. In fact under the current system those rich who needs car will over bid, as such bringing up the price.

 

[Sinkie]

This just came in at the currently broadcast 9.30pm news on Pay as you bid COE system. I think this system makes a lot of sense. If you want the COE, you give it a value. If you want it badly, you bid higher and you pay according to what you bid.

But an "expert" commented on the news that this is not an efficient system. This is what Prof Ng Yew Kwang - Division of Economics, NTU says.

"Under the Pay As you Bid system , everyone must underbid, and then different people have different psychology. Some underbid by a lot, and some underbid by less. Then the item may go to the wrong person, to the person who may not value it very highly"

Can I ask for help here - what exactly is this expert saying????

Is he saying COE must be valued highly so that it goes to the right person?? Funny expert leh!!

He's not a funny expert............he's an idiot. With such an idiot in NTU, no wonder our universities are shit. He should be sacked for stupidity.

 

[Sinkie]

If everyone bids $1, then who gets the COEs? First come first served?

 

[Narong Wongwan]

That is exactly my point. A professor on TV giving comment on such an important issue in S'pore - wow someone need to remind him he did not get it correctly !!

anyone I am in favour of PAYB as well. In fact, those with multiple car have to pay more too, the news mentioned earlier that there is an argument on whether the limit should be impose by household or members - I say by family nucleus lor - each married couple or those ready to get married such as 21 and above- one car lor.

COEs are not hdb flats...very hard to implement restrictions.
Like bro said just have a separate category for luxury cars...either by price or engine size.

 

[eatshitndie]

COEs are not hdb flats...very hard to implement restrictions.
Like bro said just have a separate category for luxury cars...either by price or engine size.

the problem with engine size categorization in the sg auto market is that there will be demand for larger luxury sedans with puny sized engines. after-market mods will 'sup-up' 4-cylinder engines with turbochargers and nitropacks on a large 4-door chassis and turn them into street monstrosities. only in sg do i see a 5-series bmw with a 2000cc engine but with the horsepower of a nissan z.

 

[The_Hypocrite]

Actually the new luxury car brands r focusing on turbo charged vehicles with smaller engines. Tat is cause it is designed to meet environmental standards. Small engine. Turbo charged make it more fuel economical n greener.

But I believe the trade off is more strain on the engine. In ang mor land now the car engines also smaller but more powerful.

In ozland now, the infatuation with those v6 and v8 4 n 5 litre engines sedans is declining. TAt y their falcon shut up shop n commodore is struggling.

the problem with engine size categorization in the sg auto market is that there will be demand for larger luxury sedans with puny sized engines. after-market mods will 'sup-up' 4-cylinder engines with turbochargers and nitropacks on a large 4-door chassis and turn them into street monstrosities. only in sg do i see a 5-series bmw with a 2000cc engine but with the horsepower of a nissan z.

 

[eatshitndie]

Actually the new luxury car brands r focusing on turbo charged vehicles with smaller engines. Tat is cause it is designed to meet environmental standards. Small engine. Turbo charged make it more fuel economical n greener.

But I believe the trade off is more strain on the engine. In ang mor land now the car engines also smaller but more powerful.

In ozland now, the infatuation with those v6 and v8 4 n 5 litre engines sedans is declining. TAt y their falcon shut up shop n commodore is struggling.

it's time for tesla to be introduced in europe and asia.

 

[oratedar]

If pap walk the talk then coe have to be pay as bid. Try it out to see if this is a fairer system. The only reason pap keep avoiding this is because the current coe system is their cash cow.

 

[looneytan]

pap keep avoiding this is because the current coe system is their cash cow.

pay as bid brings in more cash for their cows

 

[Narong Wongwan]

pay as bid brings in more cash for their cows

If COEs are categorized as in now I dun think bids will go up in PAYB system.
Better still if pap tweak the categories further to penalize multi luxury car owners (maybe only bids for this cat will go up).
PAYB is also a fairer system. Now many car dealers are putting up high bids for the COEs because they know the successful bid price would be lower than what they bidded.

 

[The_Hypocrite]

I am damn curious, when COE was at 100k,,,what was the maximum bid? I doubt PAP will release such figures as it will piss more people off...

If COEs are categorized as in now I dun think bids will go up in PAYB system.
Better still if pap tweak the categories further to penalize multi luxury car owners (maybe only bids for this cat will go up).
PAYB is also a fairer system. Now many car dealers are putting up high bids for the COEs because they know the successful bid price would be lower than what they bidded.

 

[oli9]

Better way to counter the rising COE is to disallow car dealers from putting bids on "behalf". Their business is to sell cars, not COE. Genuine buyers must secure a COE on their own then go to any car shops to purchase.
Multiple ownership must be discouraged. If its unavoidable, then pay a surcharge on 2nd car onwards.
On another note, public transport must be improved by leaps & bounds. Give car owners more reason to give up their cars rather than using monetary disincentive to curb car ownership.

 

[greenies]

Pay as you bid will not under bid. In fact under the current system those rich who needs car will over bid, as such bringing up the price.

I doubt there will be rich bidders bidding all quotas every two-week.
My gut feeling is that after filling up 500 quotas by rich car owners at >$100k, the remaining quotas could be for the mid- and low level buyers bidding below $20k-30k range.

The present COE system gives riches an advantage.

 

[greenies]

He's not a funny expert............he's an idiot. With such an idiot in NTU, no wonder our universities are shit. He should be sacked for stupidity.

He might be elite member or having a mindset alike, worrying not to get bigger and biggerest COE tax.