Getting a used car might be a better choice in 2018 due to the latest regulation in Singapore to reduce pollutions and making Singapore a cleaner country.
Last week, the National Environment Agency (NEA) announced a new scheme called Vehicular Emissions Scheme (VES). This scheme will replace the existing Carbon Emissions-Based Vehicle Scheme (CEVS) and will be implemented by 2018 till end 2019
Taxi companies will be the most affected, hence encouraging them to convert to environmentally-friendly cars.
Current Carbon Emissions-based Vehicle Scheme (CEVS) which will be replaced by end of this year.
|
Bands |
CO2 (g/km) |
Rebate / surcharge (-/+) for cars ($) |
|
A1 |
Up to 95 |
-30,000 |
|
A2 |
96-105 |
-15,000 |
|
A3 |
106-120 |
-10,000 |
|
A4 |
121-135 |
-5,000 |
|
B |
136-185 |
0 |
|
C1 |
186-200 |
+5,000 |
|
C2 |
201-215 |
+10,000 |
|
C3 |
216-230 |
+15,000 |
|
C4 |
Above 230 |
+30,000 |
Source: National Environment Agency
New Vehicular Emissions Scheme (VES) to be implemented from 1st Jan 2018.
|
Bands |
CO2 (g/km) |
HC (g/km) |
CO (g/km) |
NOx (g/km) |
PM (mg/km) |
Rebate / surcharge (-/+) for cars ($) |
|
A1 |
A1 ≤ 90 |
A1 ≤ 0.020 |
A1 ≤ 0.150 |
A1 ≤ 0.007 |
A1 = 0.0 |
-20,000 |
|
A2 |
90 < A2 ≤ 125 |
0.020 < A2 ≤ 0.036 |
0.150 < A2 ≤ 0.190 |
0.007 < A2 ≤ 0.013 |
0.0 < A2 ≤ 0.3 |
-10,000 |
|
B |
125 < B ≤ 160 |
0.036 < B ≤ 0.052 |
0.190 < B ≤ 0.270 |
0.013 < B ≤ 0.024 0 |
0.3 < B ≤ 0.5 |
0 |
|
C1 |
160 < C1 ≤ 185 |
0.052 < C1 ≤ 0.075 |
0.270 < C1 ≤ 0.350 |
0.024 < C1 ≤ 0.030 |
0.5 < C1 ≤ 2.0 |
+10,000 |
|
C2 |
C2 >185 |
C2 > 0.075 |
C2 > 0.350 |
C2 > 0.030 |
C2 > 2.0 |
+20,000 |
When you compare both schemes, you can see a lower rebate and surcharge in 2018. A number of car models will actually receive $5,000 to $20,000 lesser in rebate in 2018. For example, buyers of Honda Vezel (Hybrid) with CO2 emission of 94 g/km is currently receiving $30,000 rebate will fall to just $10,000 rebate in 2018, it’s valuation will definitely fall as soon.
This news about the new scheme will encourage people with a budget for a new car to hurry and make their purchase before 2018. This may result in the increase of Certificate of Entitlement (COE) prices in coming months.
We suggest those who are considering to own a vehicle to purchase a second-hand car soon. There should be an increase of resale cars in the market with good pricings because these owners who are considering to switch to a petrol-electric hybrid car model will try to sell their used cars as soon as possible in order to get the higher rebate this year.
Speed Credit offers competitive interest rate for your used car loans. Alternatively, you may also renew your COE to avoid paying the hefty price of a new car. We will also assist you in the paperwork to scrape your old cars if any. Contact us to learn more.
