$9,000 COE rebate level would be fairer

I REFER to the reply from Borneo Motors ('Car sellers didn't reap COE windfall'; ST, Feb 28) to Mr Lim Yong Nam ('Do car buyers lose out as COE prices drop?'; ST, Feb 20).

Last month, I signed an agreement to purchase a new car from another major car distributor. The rebate level was set at $6,000.

I was told that the distributor will bid on my behalf at about $3,000 above the last Certificate of Entitlement (COE) price of around $12,000.

I asked in jest if the rebate level could be set higher but was told it is company policy and that it is unlikely to hit this low level. I got my bid at $6,002.

The point I want to make is that, by setting a very low rebate level, the car seller is prepared to top up only another $3,000 but stands to gain $6,000 when the COE price falls.

In this instance, a fairer rebate level would have been $9,000. This way, the distributor would make either $3,000 more or $3,000 less.

Mind you, if the COE prices were to skyrocket, the distributor would only have to say sorry because securing a COE is not guaranteed.



Casey Wong Kuo Chang