Forever_Yours
25-08-2009, 08:18 PM
THE Land Transport Authority on Tuesday halved the $10,000 deposit bidders need to fork out for each car and truck COE bid.
The authority said the move is temporary, and will be effective for the October 2009 to September 2010 tender period. It came after years of clamouring from the motor industry.
'It is a huge cost savings for companies as well as individuals,' said Automotive Importers and Exporters Association president Neo Nam Heng. 'I think it will certainly encourage more individuals to do their own COE bidding.'
The $10,000 deposit has been seen as a big stumbling block for individual vehicle buyers who want to submit their own bids. Hence, the majority leave the task to motor dealers, sometimes resulting in disputes.
But for motor traders, the move represents substantial savings. Mr Neo said for every $1 million a company is required to set aside for COE bidding, it will incur about $8,000 in interest charges per month.
'Some dealers need to hold on to their COEs for three to six months, so can you imagine the cost?' he said.
With the deposit halved to $5,000, he said the interest will likewise be halved to $4,000 per month.
The LTA said it has received feedback from motor traders that companies are still facing some cashflow problems.
A spokesman said: 'This reduction in the COE bid deposit is a temporary relief measure to help businesses, particularly motor traders and prospective vehicle owners reduce their financing needs and free up funds currently used as deposits.'
But Mr Neo said he hopes it can be permanent. 'If this proves to be workable and there are no hiccups, I hope it can be extended,' he said.
The Straits Times understands the LTA will also announce another 'pro-business' initiative: doubling the time that deregistered vehicles can be kept in export-processing zones to 24 months.
Industry players said this will also help motor traders source for buyers in the current slowdown.
http://www.straitstimes.com/Breaking+News/Singapore/Story/STIStory_421161.html
25-08-2009, 08:18 PM
THE Land Transport Authority on Tuesday halved the $10,000 deposit bidders need to fork out for each car and truck COE bid.
The authority said the move is temporary, and will be effective for the October 2009 to September 2010 tender period. It came after years of clamouring from the motor industry.
'It is a huge cost savings for companies as well as individuals,' said Automotive Importers and Exporters Association president Neo Nam Heng. 'I think it will certainly encourage more individuals to do their own COE bidding.'
The $10,000 deposit has been seen as a big stumbling block for individual vehicle buyers who want to submit their own bids. Hence, the majority leave the task to motor dealers, sometimes resulting in disputes.
But for motor traders, the move represents substantial savings. Mr Neo said for every $1 million a company is required to set aside for COE bidding, it will incur about $8,000 in interest charges per month.
'Some dealers need to hold on to their COEs for three to six months, so can you imagine the cost?' he said.
With the deposit halved to $5,000, he said the interest will likewise be halved to $4,000 per month.
The LTA said it has received feedback from motor traders that companies are still facing some cashflow problems.
A spokesman said: 'This reduction in the COE bid deposit is a temporary relief measure to help businesses, particularly motor traders and prospective vehicle owners reduce their financing needs and free up funds currently used as deposits.'
But Mr Neo said he hopes it can be permanent. 'If this proves to be workable and there are no hiccups, I hope it can be extended,' he said.
The Straits Times understands the LTA will also announce another 'pro-business' initiative: doubling the time that deregistered vehicles can be kept in export-processing zones to 24 months.
Industry players said this will also help motor traders source for buyers in the current slowdown.
http://www.straitstimes.com/Breaking+News/Singapore/Story/STIStory_421161.html
