Monday, August 31, 2009
Is Red Plate More Attractive Now?
LTA has just announced over the weekend "Enhancements To The Off-Peak Car (OPC) Scheme". Analysis in the local papers revealed the net incentive value of less than $1,000 for the extra periods (Saturday mornings and 5 Public Holiday Eves) of time OPC vehicles are allowed on the roads. One key enhancement is the ability to purchase e-Day License within 24 hours the next day after using the vehicle - this is key for emergency use without the risk of not having a paper ticket or tearing off the wrong date (anxiety from the emergency). The other one is the rebate returned every 6 month for conversion rather than when the OPC vehicle is scrapped.
There are three areas that the enhancements did not addressed:
1. The $100 administration fees eat into the savings for motorists. I believe that LTA is highly computerized so the cost of the transaction should be rather low. Why discourage such transactions?
2. The red plates are not going away ... the fees to put up one with the seal also cost money.
3. No e-1/2 Day License. If I need to use the car for only half a day, I will still have to pay for a full day license.
In conclusion, I think the enhancements may attract new OPC buyers rather than existing motorists. I look forward to hearing more enhancements from LTA in 2010.