Modify the COE system

The COE system for allocating licences for new vehicles has been used for more than 20 years in Singapore. It is a crude system that produces the following negative impacts:

- it encourages speculation on the COE prices and lead to price escalation due to fear of further increases
- the motor dealers take advantage of the system to make speculative profits at the expense of consumers.

Is there a better system? I like to propose the following modification to smoothen price volatility, reduce speculation and allow consumers to bid directly:

- have COE bidding for six months (and not monthly)
- the car owner is allowed six months to buy a car (and the COE will start from the date of purchase)
- the car owner needs to pay a deposit of 10% to make a bid and the balance on receiving the COE
- an owner who sells a new car within one year has to pay a levy (to prevent speculation)

Tan Kin Lian