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SINGAPORE: The Land Transport Authority (LTA) is dangling more carrots to make off-peak cars more attractive to motorists.
Among them are longer usage hours, cash rebates and greater flexibility in getting licences.
Currently, owners of off-peak cars get a one-off S$17,000 tax rebate. In return, the driver can only drive during off-peak hours, from 7pm to 7am.
Owners of cars have to display a S$20 paper licence if they want to drive during peak hours.
From November 23, e-licences will replace paper licences.
So, instead of being restricted to buying these at a few physical outlets, motorists can just SMS or go online to get them.
An added option is that motorists can now drive first and pay later for such licences for up to 24 hours later, which would be useful in emergencies.
More changes will be rolled out by end January 2010.
Motorists will then be able to drive all day Saturday and on the eves of five major public holidays - New year, Lunar New year, Hari Raya Puasa, Deepavali and Chrsitmas, instead of only after 3pm on those days.
But there is no free lunch.
With more driving hours available, road tax discounts will also be reduced from S$800 to S$500 while the minimum annual road tax will go up from S$50 to S$70.
Existing off-peak car owners who want to switch to the new system will also have to pay an administrative fee of S$100 for what LTA calls "back-end work".
Another incentive is cash rebates if a motorist decides to switch his normal car to an off-peak car.
Instead of the current practice of getting a lump sum rebate only when the car is deregistered, motorists will now get a cash rebate of up to S$1,100 for every six months' registration as an off-peak car until the car reaches 10 years of age.
Currently, the number of off-peak cars in Singapore makes up about eight per cent of the total car population. With the new scheme, the Land Transport Authority hopes to up that figure to 10 per cent.
But are the changes enough to persuade more motorists to opt for off-peak cars?
Said one motorist: "If the situation changes and I do not have to drive during the day, I may consider. But having said that, because I need to fetch my kids to childcare and it's during the day, it doesn't sound attractive to me."
"I don't like to be restricted. There are already a lot of restrictions on the road like bus lanes, timing, ERP. I don't want to add on another restriction to the flexibility in which you use car," said another motorist.
Car dealers said the scheme would make small cars more attractive to buyers.
Glenn Tan, group chief executive, Motor Image, said: "You'll probably see more people getting interest in the Cat A market because OPC cars have now become more convenient and it is a good buy per se now simply because the hassle could have put off some buyers."
The changes to this 15-year-old scheme comes after extensive consultations, including with off-peak car users. - CNA/vm
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