Changes to make off- peak car scheme more attractive

Asha Popatlal, Channel NewsAsia 29 Aug 09;

SINGAPORE: The Land Transport Authority (LTA) is dangling more carrots to make off-peak cars more attractive to motorists.

Among them are longer usage hours, cash rebates and greater flexibility in getting licences.

Currently, owners of off-peak cars get a one-off S$17,000 tax rebate. In return, the driver can only drive during off-peak hours, from 7pm to 7am.

Owners of cars have to display a S$20 paper licence if they want to drive during peak hours.

From November 23, e-licences will replace paper licences.

So, instead of being restricted to buying these at a few physical outlets, motorists can just SMS or go online to get them.

An added option is that motorists can now drive first and pay later for such licences for up to 24 hours later, which would be useful in emergencies.

More changes will be rolled out by end January 2010.

Motorists will then be able to drive all day Saturday and on the eves of five major public holidays - New year, Lunar New year, Hari Raya Puasa, Deepavali and Chrsitmas, instead of only after 3pm on those days.

But there is no free lunch.

With more driving hours available, road tax discounts will also be reduced from S$800 to S$500 while the minimum annual road tax will go up from S$50 to S$70.

Existing off-peak car owners who want to switch to the new system will also have to pay an administrative fee of S$100 for what LTA calls "back-end work".

Another incentive is cash rebates if a motorist decides to switch his normal car to an off-peak car.

Instead of the current practice of getting a lump sum rebate only when the car is deregistered, motorists will now get a cash rebate of up to S$1,100 for every six months' registration as an off-peak car until the car reaches 10 years of age.

Currently, the number of off-peak cars in Singapore makes up about eight per cent of the total car population. With the new scheme, the Land Transport Authority hopes to up that figure to 10 per cent.

But are the changes enough to persuade more motorists to opt for off-peak cars?

Said one motorist: "If the situation changes and I do not have to drive during the day, I may consider. But having said that, because I need to fetch my kids to childcare and it's during the day, it doesn't sound attractive to me."

"I don't like to be restricted. There are already a lot of restrictions on the road like bus lanes, timing, ERP. I don't want to add on another restriction to the flexibility in which you use car," said another motorist.

Car dealers said the scheme would make small cars more attractive to buyers.

Glenn Tan, group chief executive, Motor Image, said: "You'll probably see more people getting interest in the Cat A market because OPC cars have now become more convenient and it is a good buy per se now simply because the hassle could have put off some buyers."

The changes to this 15-year-old scheme comes after extensive consultations, including with off-peak car users. - CNA/vm

Off-peak car scheme revised
LTA to give out cash rebates earlier, relax restriction hours and introduce e-licences
Yeo Ghim Lay, Straits Times 31 Aug 09;

The off-peak car scheme will be revised to make it more attractive for people to switch to these red-plated cars, and in the process ease congestion around the island.

The Land Transport Authority (LTA) yesterday announced three changes:

# By end-January next year, drivers who convert their cars to the off-peak scheme will get cash rebates earlier instead of having to wait until their vehicles are scrapped.

# Also by end-January next year, off-peak cars will be allowed on the roads during all hours on Saturdays and the eve of five public holidays.

# From Nov 23, electronic licences will replace the current paper permits which motorists must buy when they use their off-peak cars during restricted hours.

The changes are the result of a review of the 15-year-old scheme, which is targeted at easing traffic jams and also allowing people to own cars at a lower cost, if they use them during non-peak periods.

There are currently 45,500 of these cars with red licence plates. They make up about 8 per cent of the car population.

The change to give out early cash rebates will probably be the one to get drivers of normal cars to consider making the switch.

By the end of January next year, those who convert their cars will be given a cash rebate of up to $1,100 for every six months that the car is registered as an off-peak vehicle, until the car reaches 10 years old.

This is provided the vehicle is kept as an off-peak car for at least six months after conversion.

Currently, someone who buys a new car and registers it as an off-peak car gets a rebate of up to $17,000 off the registration taxes.

But if a driver converts his normal car to an off-peak one, he does not get a refund of the taxes.

Instead, he receives a rebate that is paid only when the car is scrapped. This rebate is $2,200 for each year that the vehicle was registered as an off-peak car.

Operations executive Winston Tan, 27, who bought a Mazda 3 six months ago, said the new cash rebate is 'quite attractive' and makes converting to the off-peak car scheme worth considering.

He also welcomed the relaxation of restriction hours.

Under the revised scheme, off-peak cars can ply the roads during all hours on Saturdays and on the eve of five public holidays - New Year's Day, Chinese New Year, Hari Raya Puasa, Deepavali and Christmas - by the end of January next year. Currently, they are allowed on the roads only before 7am or after 3pm on those days.

These extra privileges will, however, come at a price for current off-peak car owners who opt for the revised scheme with its extended hours. They will enjoy a smaller discount on their annual road tax, compared to those who choose to stick with the old scheme.

The discounts will be reduced by $20 to $300. Those who switch to the revised scheme will also have to pay an administrative fee of $100.

The LTA said it is not making all existing off-peak car owners switch to the revised scheme. But all newly registered off-peak cars will come under it.

Finally, the LTA is making the buying of day licences more flexible. The $20 paper licences will be replaced by electronic ones from Nov 23. The new electronic licences can be bought online, at AXS stations and via SMS, in addition to the existing sales outlets.

You can go online or visit a SingPost outlet or an Automobile Association office to change the usage date of the licence or cancel it before 7am on the specified usage date. If you have to drive your car and have not bought a licence, you can still buy an electronic one up to 11.59pm the next day.

Drivers have long complained that the paper licences, which resemble parking coupons, are troublesome to use. They are also open to tampering and can be bought only over the counter.

All electronic licences will be logged into a system. Instead of stopping off-peak cars to check on their licences, LTA enforcement officers will take down the car's licence plate number and check it against the system.

Engineer Rachel Lee, 28, who currently owns an off-peak car, said she looks forward to the electronic day licence. 'It's great as well that I will be able to use my car for the whole of Saturday,' she added.

Mr Michael Wong, vice-president of the Motor Traders Association, said the changes might prompt drivers to switch to the off-peak car scheme if they do not use their cars much on weekdays.

'The unrestricted usage on Saturdays and the cash rebates make it very attractive. Consumers will always prefer having cash in their pockets instead of waiting for it,' he said.

OPC tweaks may put brakes on peak traffic
Sweet deal for owners of off-peak cars; changes may help curb spread of ERP gantries
Christopher Tan, Straits Times 30 Aug 09;

At first glance, the changes announced to the off-peak car (OPC) scheme today are far too minor to win motorists over and thus make a dent in the volume of traffic on our roads during peak hours.

Examine the tweaks more closely, however, and the picture changes.

In fact, one might even say the revisions are generous to the people who choose to drive the red-plated cars.

The change that seems likely to be the most impactful is the one that grants drivers who convert their normal cars to OPCs an upfront cash rebate.

The owner of an average family sedan who converts will get an upfront rebate of $1,100 for every six months his car is an OPC.

Currently, those who convert have to wait till they scrap their cars to realise the savings of driving an OPC.

This is not half bad, considering the fact that if you buy a new OPC today, you are given a $17,000 rebate upfront. This works out to $1,700 a year over the car's 10-year lifespan.

The revised rebate is key to winning converts. And getting more car owners to switch to red plates is in line with the Government's grand strategy of allowing people to own cars, but not to drive during peak periods.

The other improvement to the scheme which should garner cheer is the one which allows owners of such cars to drive all day on Saturdays without having to pay for a permit.

Currently, OPCs can be driven between 7pm and 7am on weekdays and from 3pm on Saturdays and the eve of five major public holidays.

They can be used freely on Sundays and all public holidays.

To use them outside the prescribed hours, an owner needs to pay for a $20 'day licence' per day.

Many OPC owners have been clamouring for this for years, saying that since more and more people here work five-day weeks, such a move makes sense.

When Transport Minister Raymond Lim announced in February that the OPC scheme would be tweaked to make it more attractive, he hinted that free use for the whole of Saturdays could be possible.

But there would be commensurate adjustments to the tax breaks that OPCs are accorded.

This is fair, because OPC drivers cannot be given a free ride at the expense of those who pay full taxes on their cars.

So, with free Saturday use, road tax discounts on OPCs will now be smaller. Instead of $800 a year, the discount is now $500.

In other words, OPC owners will pay $300 a year for the privilege of being able to drive their vehicles on Saturdays, as well as the eve of five major public holidays, without incurring more cost.

This is again a pretty decent deal.

To use a simple example, let's take the example of Driver A, who has a weekend ritual: Getting up bright and early each Saturday and spending quality time with his family by driving them to a favourite haunt for breakfast.

There are about 50 Saturdays a year, so he would have had to spend $1,000 on day licences. Include the eve of five major public holidays and the bill comes up to $1,100 a year.

That is well above the $300 road tax discount he will forgo under the new scheme.

The last measure to make OPCs more attractive - replacing the paper day licence with an e-licence - is a neutral one.

OPC owners who find it a hassle to display the parking coupon-like paper licence and who occasionally tear the wrong tabs will welcome the change.

The e-licensing arrangement also means drivers will no longer have to suffer the indignity of being flagged down by enforcement officers who make spot checks.

With an e-licence - which can be bought through the computer, the phone or at AXS terminals - there is no need to display a physical permit.

Instead, enforcement officers will simply take note of an OPC that is being used outside prescribed hours, and check the system to see if an e-licence had been bought for it.

Better yet, an e-licence can even be bought the day after one has driven the car during restricted hours.

This helps those who need to drive their off-peak cars at short notice, to sort out an urgent matter or in case of an emergency. They need not be slowed down by having to get a licence before dashing to their cars.

To be sure, there is one revision to the scheme that leaves a sour note.

The $100 fee that will be levied by the Land Transport Authority on those who convert their normal cars to OPCs is steep for what is essentially an administrative procedure.

This is on top of another $100 or so for the red plates.

But despite this, the revised scheme essentially sweetens the deal for those who want to own a car but do not really need to drive regularly during peak periods.

It is also great for those who want a second car for leisure - a two-seater convertible for the weekends, for instance.

But probably the best thing about the scheme is what was not announced today.

If enough drivers deem the improvements good enough to give the scheme a go, it could mean a reduction in peak traffic volume by 5 per cent to 10 per cent.

That may not seem like much, but it is a figure that could determine whether an electronic road pricing (ERP) gantry is erected or not.

Off-peak in tune with drivers
The New Paper 31 Aug 09;

OWNING an off-peak car (OPC) just got more enticing. The Land Transport Authority (LTA) unveiled a whole new slew of changes yesterday to enhance the OPC scheme to make it more convenient and attractive to motorists. DESMOND NG spells out the details
Restricted usage hours
31 August 2009

Restricted usage hours

# BEFORE

WEEKDAYS:

No usage from 7am to 7pm

SATURDAYS:

7am to 3pm

EVE OF NEW YEAR, LUNAR NEW YEAR, HARI RAYA PUASA, DEEPAVALI AND CHRISTMAS:

7am to 3pm

# NOW

FROM END-JAN 2010

WEEKDAYS:

7am to 7pm (unchanged)

SATURDAYS:

Unrestricted usage

EVE OF NEW YEAR, LUNAR NEW YEAR, HARI RAYA PUASA, DEEPAVALI AND CHRISTMAS:

Unrestricted usage

Supplementary Day Licence

# BEFORE

$20 day licence (paper licence) required if OPC is used during restricted hours.

Sold only at SingPost outlets, Automobile Association of Singapore (AAS) outlets and LTA.

# NOW

FROM 23 NOV 2009

e-Day Licence ($20) replaces paper licence.

Display of licence not needed.

Motorists can buy licences two weeks before the usage date, or a day after.

Motorists can buy licences online via One.Motoring portal, AXS Stations, SMS service, SingPost and AAS outlets.

LTA enforcement officers will note down the vehicle number of the OPC and verify against the system records to check if a valid e-Day licence has been purchased.

Cash rebates for conversion to new OPC scheme

# BEFORE

A person who registers a new car as an OPC enjoys an upfront tax rebate of up to $17,000.

If a person converts his normal car into an OPC, he receives a Preferential Additional Registration Fee (PARF) rebate of $2,200 per year.

This is paid as a lump sum only upon de-registration of the car.

# NOW

FROM END-JAN 2010

A person who registers a new car as an OPC enjoys an upfront tax rebate of up to $17,000. (unchanged)

Owners will enjoy a cash rebate of up to $1,100 for every six months' of registration as an OPC, until the car reaches 10-years-old.

Off-peak car scheme could do with more fine-tuning
Straits Times 6 Sep 09;

I refer to last Sunday's article, 'Off-peak car scheme revised'.

The introduction of earlier cash rebates will certainly be a factor to consider if one wishes to convert one's car to an off-peak one during this economic downturn.

The electronic licensing scheme will definitely be a boon to those who are already off-peak car (OPC) owners.

But there are two areas in the scheme that the Land Transport Authority (LTA) may consider tweaking to make OPC ownership even more attractive.

First, since the daily licensing scheme will be converted to an electronic one, wouldn't it be better to fine-tune the e-licensing system to allow for half-day, quarter-day or even hourly rated licences to be purchased, instead of just a full-day licence?

Take a case where one needs to use the car for only an hour after 7am or an hour before 7pm. It would be excessive to pay the full $20 daily licence for just an hour or two of use.

Allowing the e-licensing payment to be pro-rated would be a much fairer system.

The other issue is the red licence plates for off-peak cars.

There is a social stigma attached to these red-plated cars, which could be another reason some people may not want to make the switch.

A much better and effective system would be to tag such cars with a Global Positioning System - like the ones used to track taxis - and keep the normal licence plate colour.

To protect the privacy of the car user, instead of tracking where the car went, the system records only the time the car was in use and its duration.

For instance, the system could verify when the car was used against its e-licence purchasing data. If there is a discrepancy, the system could automatically generate a notice or summons, stating the date and time of offence of a particular off-peak car user.

This will improve job efficiency at the LTA and reduce its operational costs in the long run.

As in any system, there is always room for improvement. The result should be a win-win situation for both car owners and the agency.

Chang Seng Onn