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Old 15th February 2013, 08:36 AM   #1 (permalink)
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Do cars last only 10 years?

Do cars last only 10 years?


It may be time to review how long car COEs should last. Photo: Reuters

BY
RICHARD HARTUNG


More than two decades ago, the validity of Certificates of Entitlement (COEs) was set at 10 years. Even after tremendous advances in automobile technology and increases in how long drivers own cars, however, that timeline has not changed. Perhaps it is time to relook at whether to extend how long COEs last.

Decades ago, far fewer car owners may have wanted to keep their car for more than a decade. Many cars were not durable enough to stay in good shape; drivers had safety concerns, and older cars had higher repair bills.

Many manufacturers also did not expect cards to last very long, so warranties were shorter and odometers often only ran to 99,999 miles (160,000 km).

Now, as The New York Times put it recently, 200,000 miles is the new 100,000. Materials used to manufacture cars are better, advances in corrosion protection make them last longer and customer satisfaction surveys show cars having fewer problems every year. The average age of cars in the United States is 11 years, and more than 20 per cent are at least 16 years old.

Indeed, car manufacturers are so confident that warranties are getting longer. Ten-year warranties for Toyota and Hyundai cars are common in many places, and in some countries Chrysler offers a lifetime warranty for the engine, transmission and drive system.

Cars remain safer for far longer, too. Newer models have more safety features, from more sophisticated designs to airbags and better brakes. And in any event, as Consumer Reports put it when assessing car safety, “the driver is a critical factor, especially among teens and older drivers”.

Despite all these advances, there have been few, if any, formal reviews of whether COEs should last longer. Even though the Vehicle Quota System (VQS) Review Committee in 1999 did mention that public consultations yielded “a few suggestions ... to extend the validity period, or to base the validity on usage”, its report did not discuss changes.

More recent reviews, in 2010 and last year, focused largely on tweaking the technical aspects of allocating and bidding for COEs.

BENEFITTING DRIVERS AND THE PLANET

Extending the COE duration could bring a multitude of benefits.

Rising transportation costs have a big impact. Drivers are thus keeping cars longer, with rising COE prices and economic uncertainty high among the reasons for the percentage of cars between four and eight years old skyrocketing from 13 per cent of all cars in 2007, to 65 per cent by late last year.

Allowing drivers to keep their car longer without a new COE, rather than scrapping one car and buying another, would save drivers money and could take some of the sting out of higher transportation costs.

Replacing cars has environmental impacts too. Manufacturing a car requires iron, aluminium, plastic, steel, glass, rubber, copper and more, as well as plenty of energy.

While calculations are complex, writer Michael Martineck used the US Argonne National Laboratory GREET model to calculate whether it is better to keep an old car or buy a new one. He found, for example, that simply replacing a Honda Civic with a newer one would not be environmentally beneficial.

While the impact depends on the type of car, and replacing a Rolls-Royce with a Prius would benefit the planet, keeping many cars longer may have less negative environmental impact than buying a new one and results in less landfill.

And it is not as if safety is likely to be compromised in today’s more durable cars. Cars are built to last far longer, even for Singaporeans driving a relatively high average of 19,000 km per year. And in any event, biannual or annual inspections help ensure automobile safety.

NO INCREASE IN CARS

Yes, business and government revenue would be affected. While automobile dealers might be less happy, automobile repair shops and inspection centres may well be delighted. And since the VQS was supposed to regulate the number of vehicles rather than to generate revenue, the Government should not be disappointed if revenue changes.

Admittedly, the process for extending COEs could be tricky. One alternative could be to do so only for new cars, which might upset existing car owners. Another could be to extend the validity of all COEs, which may require considerable analysis to develop an equitable process. There could be other options as well.

If COEs are extended, the total number of cars would not need to increase, since car owners could simply keep their car longer. Yes, many drivers may choose to change their car sooner so they have the latest model. Yet others could reduce their costs while continuing to use a reliable car.

Taking the time to review the duration of COEs, rather than just the process for purchases, would mean that VQS practices would finally be keeping up with technological changes, and it could offer a multitude of benefits to car owners and, more broadly, throughout Singapore.

Richard Hartung is a consultant who has lived in Singapore since 1992.

Source: http://www.todayonline.com/commentar...-only-10-years

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Old 15th February 2013, 07:21 PM   #2 (permalink)
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Re: Do cars last only 10 years?

This is SG and we follow the metric system, since when do cars display mileage in miles.

Old cars (90s) go up to 99999kms so it's a little difficult to tell if it is 80,000, 180,000 or 280,000kms.

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Old 17th February 2013, 08:29 PM   #3 (permalink)
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Re: Do cars last only 10 years?

Originally Posted by typeX View Post
This is SG and we follow the metric system, since when do cars display mileage in miles.

Old cars (90s) go up to 99999kms so it's a little difficult to tell if it is 80,000, 180,000 or 280,000kms.
Eh? Mine is 1995 and got 6 counters. I saw a old C class once with 700,000km+ on the clock!

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Old 17th February 2013, 08:38 PM   #4 (permalink)
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Re: Do cars last only 10 years?

so durable for wat. how many would drive the same car for 10 yrs? even handphone also use 1 yr change.

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Old 18th February 2013, 06:24 PM   #5 (permalink)
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Re: Do cars last only 10 years?

Originally Posted by gimmebanana View Post
so durable for wat. how many would drive the same car for 10 yrs? even handphone also use 1 yr change.
Not the whole world is like Singapore. Remember Singapore is only a "dot" on the map?

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Old 18th February 2013, 06:32 PM   #6 (permalink)
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Re: Do cars last only 10 years?

Honestly, COE is a really big lie, imo COE only ensures people HAVE TO BUY car so as to allow a steady inflow of money for government...

I've heard from elders that COE was in place to regulate the numbers of cars on the road, pffffttttt..... you kidding me? It's simply not working, just like ERP, only makes more money but does nothing! If u really wanna curb, use cigarettes as an example; either u ban it or don't up its tax, stop making excuses to increase price for own benefit, the consumers are here to stay, either make our lives easier or stop interfering.

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Old 18th February 2013, 08:35 PM   #7 (permalink)
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Re: Do cars last only 10 years?

Originally Posted by Strudel View Post
Eh? Mine is 1995 and got 6 counters. I saw a old C class once with 700,000km+ on the clock!
Oh yes.. thinking back my 1994-ish 180sx and 1992 suzuki swift gti had 6 digits as well.

Must've mixed it up with my old bike. lol.

wow 700k kms if without a rebuild is God-like (or time bomb)

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Old 21st February 2013, 07:12 PM   #8 (permalink)
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Re: Do cars last only 10 years?

Originally Posted by typeX View Post
Oh yes.. thinking back my 1994-ish 180sx and 1992 suzuki swift gti had 6 digits as well.

Must've mixed it up with my old bike. lol.

wow 700k kms if without a rebuild is God-like (or time bomb)
Hahaha. On second thought I think it was actually 800,000km+. I was joking with me friend (he's a mechanic for Benz) what happens after 999,999km?

Bike so low km? 5 counter just sound too little.

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Old 21st February 2013, 11:45 PM   #9 (permalink)
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Re: Do cars last only 10 years?

COE is so expensive.... i won't have a chance to drive a car in my whole life.

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Old 21st February 2013, 11:47 PM   #10 (permalink)
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Re: Do cars last only 10 years?

Originally Posted by Strudel View Post
Not the whole world is like Singapore. Remember Singapore is only a "dot" on the map?
this article is talking about singapore my friend.

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Old 21st February 2013, 11:49 PM   #11 (permalink)
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Re: Do cars last only 10 years?

Originally Posted by Gingerbread333 View Post
COE is so expensive.... i won't have a chance to drive a car in my whole life.
why not. maybe your future husband have a car leh.

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Old 21st February 2013, 11:53 PM   #12 (permalink)
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Re: Do cars last only 10 years?

Originally Posted by gimmebanana View Post
why not. maybe your future husband have a car leh.
Hahah, can't even afford to learn driving... can forget about having a car in future man! Yeah, hope so loh.

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Old 22nd February 2013, 01:25 PM   #13 (permalink)
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Re: Do cars last only 10 years?

Cars definitely can last longer de, but governments want to suck more money out of us, that's why make you sell the car after 10 years.

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Old 22nd February 2013, 02:17 PM   #14 (permalink)
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Re: Do cars last only 10 years?

Originally Posted by Magnum^Spin View Post
Honestly, COE is a really big lie, imo COE only ensures people HAVE TO BUY car so as to allow a steady inflow of money for government...

I've heard from elders that COE was in place to regulate the numbers of cars on the road, pffffttttt..... you kidding me? It's simply not working, just like ERP, only makes more money but does nothing! If u really wanna curb, use cigarettes as an example; either u ban it or don't up its tax, stop making excuses to increase price for own benefit, the consumers are here to stay, either make our lives easier or stop interfering.
True, the government really makes money out of it. There's no denying that. But without COE, don't you think cars will be a lot cheaper and there'll be a lot more cars on the road? There's already jams all over the place at peak hours. WIthout COEs, won't the jams be even worse?

It's true that whatever the government does to control things gives them money. But money is where it hurts most to most people. It's like the most effective weapon against them. If they don't target the money, what else should they target then?

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Old 2nd June 2013, 12:39 AM   #15 (permalink)
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Re: Do cars last only 10 years?

It depends on how well you maintain if you want your car to last for more than 10 years...

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Old 16th August 2013, 06:01 PM   #16 (permalink)
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Re: Do cars last only 10 years?

Originally Posted by sunshinji View Post
It depends on how well you maintain if you want your car to last for more than 10 years...
Absolutely correct. It is the maintenance that is done by the owner to retain his car for more than 10 yrs.

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