5 Major News Events in 2017 That May Impact Your Car Price
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Every car owner knows that the value of your vehicle can change in the blink of an eye. Many factors can affect car prices, be it market demand, manufacturing changes or even new tax laws.
That's why it's so important for vehicle owners to keep up with the news, so you can always stay one step ahead and make the best decisions for your car! But if you've missed out on 2017's big news, don't worry—Motorist.sg has got you covered! Here are the top five car-related news in 2017 that you absolutely need to know about.
1. Decrease in Special Tax for Diesel Vehicles
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Before 2017, the Singapore Government levied a Special Tax on all diesel-using cars, including taxis. All owners of diesel cars had to pay a lump sum, regardless of how much fuel they actually used. But starting from 20 Feb 2017, the tax system for diesel vehicles will undergo some big changes. There will be a new tax of $0.10 per litre on diesel, to discourage fuel usage. But to make up for this change, the Special Tax will be decreased significantly, by $100 for private cars and $850 for commercial cars. On top of that, commercial diesel vehicles get to enjoy 100% road tax rebate for a year, and partial rebates for another two years after!
So what does this mean for you? The immediate fall in Special Tax and rebate advantages are likely to drive up demand for diesel vehicles in the near future. If you own a diesel vehicle, you may want to consider selling it in the next few years, as the increased market demand will probably drive up prices for your car. But if you own a petrol vehicle, the value of your car may be set to fall, as more drivers and businesses choose diesel vehicles for the tax benefits. In that case, you may want to consider selling now, while demand is still high!
Curious if the value of your vehicle is impacted by the change? Click here for a free valuation of your car's current value!
2. Vehicular Emissions Scheme (VES)
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The new Vehicular Emissions Scheme (VES) is an addition to the Carbon Emissions-based Vehicle Scheme (CEVS), which has been in place since 2013. The CEVS is a scheme which offers rebates for cars with cleaner emissions, and surcharges for cars which release dirtier emissions. Previously, the CEVS only took into consideration carbon dioxide emissions, but now the new VES will also consider 4 new pollutants, meaning that criteria will likely be more stringent—it may be harder for cars to get rebates, and easier to fall under surcharges.
So what does this mean for you? The full details of the new VES have not been released, but since it encourages more environmentally friendly vehicles, bigger cars which require more fuel are likely to be impacted most. COE Category B cars (above 1,600cc or 97kw) will probably see a rise in prices once the VES comes into effect. If you're looking to buy a big new ride, it's a good idea to buy soon before the surcharges come in! Alternatively, you could think about buying second hand instead to avoid extra cost.
To check your car's current eligibility for CEVS, click here.
3. Extension of Early Turnover Scheme
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Another important piece of news for diesel car drivers—the Early Turnover Scheme will be extended for another 2 years! This scheme was designed to encourage early replacement of older, more pollutive commercial diesel vehicles. If the owner of an eligible vehicle deregisters it early and replaces it with an electric/Euro V/VI vehicle, he can pay a PQP (Prevailing Quota Premium) for the new vehicle's COE, without needing to bid! Click here to find out if your vehicle is eligible under the early Turnover Scheme.
So what does this mean for you? If you own an eligible vehicle, you might want to make use of this opportunity to get it deregistered, and save money and hassle on getting a replacement car!
4. Change in Additional Registration Fees for Motorcycles
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All motorcycle owners will be familiar with the Additional Registration Fee (ARF), consisting of 15% of the motorcycle's OMV (Open Market Value). But as of this year, the ARF will be tiered, meaning that more expensive motorcycles will be subject to a higher ARF. Motorcycles costing up to $5,000 will remain at 15%, but motorcycles costing from $5,000 to $10,000 will be subject to 50% fee rate, and anything beyond that is subject to 100% ARF!
So what does this mean for you? Prices of big motorcycles are very likely to shoot up, so if you're a bike rider thinking of getting an expensive ride, you may want to consider getting a small car instead. You can save a lot on costs, especially if you decide to buy second hand and avoid the often unpredictable COE bidding!
5. New Euro 6 Emission Standards for Motor Vehicles
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Starting 1 st September this year, the National Environment Authority (NEA) will be implementing new emissions standards for vehicles, in line with Euro 6 standards. These are the highest emission standards for cars so far, and will result in many models who do not meet these standards leaving the market. However, these standards will only affect new cars, and already registered cars can remain in use.
So what does this mean for you? If you intend to buy a car that doesn't comply with Euro 6 standards, you may have to consider second-hand options, as local retailers will no longer carry these models. And if you already own a registered non-compliant vehicle, you can think about renewing your COE, since you won't be able to get a similar model on the market anymore!
And those are the biggest news for vehicle owners that you need to know! When you stay informed, you can make smarter decisions, save costs, and make the most of market opportunities.
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