Trend towards public transport for weekdays, fancy cars for leisure
By Christopher Tan 17 February 2009
In the last two years, higher-end cars like Audis, BMWs, Mercedes-Benzes, Volvos and Lexuses have been seen sporting the red number plates of off-peak cars.
A Lotus Exige S and a Porsche 911 Carrera were among the 50-odd more-expensive cars registered as off-peak ones last year, with the $400,000 Carrera the most expensive among them.
Off-peak cars, which come with a one-off flat rebate of $17,000 upon registration, have typically been bought by those eyeing budget brands such as Hyundai, Mitsubishi and Kia plus Chinese brands Chery and Geely.
Industry observers say the trend towards higher-end off-peak cars could be a result of more motorists opting to use public transport on weekdays.
Mr. Alex Yap, the sales and marketing director of BMW agent Performance Motors, said the appeal of off-peak cars could go up, ‘given the current economic conditions and some of the costs associated with owning a car, including Electronic Road Pricing’.
Such cars would be attractive, especially to those who want to drive only after working hours and on weekends, and use public or company transport on weekdays.
Performance Motors sold nine off-peak BMWs last year, up from three in 2007.
Another possible reason for the rise of the fancier off-peak car is the drop in car prices due to weaker COE rates. This has brought many premium makes within reach of more buyers - especially after the rebate is thrown in.
Mr. Peter Ng, 44, bought his dream car, a Lexus GS300 luxury sedan, last February, and made it an off-peak car.
The father of two who works for a semiconductor firm said his family had two regular-plate cars, a Mitsubishi Colt Version R and a Mitsubishi Airtrek, but realised that they did not need both sets of wheels the whole day.
They sold the Airtrek and bought the Lexus for an ‘affordable’ $150,000.
Now he and his wife use the Colt for their day-to-day commute, and bask in the luxury of the Lexus on weekends.
A pleased Mr. Ng said: ‘I pay only about $1,400 on road tax a year for the Lexus. On the whole, it’s cheaper to run than the Airtrek.’
Another owner of a fancy off-peak car is marketing director John Hooi. He has had three off-peak cars, the latest a sporty Audi S3.
Married but with no children, the 38-year-old has never owned a regular-plate car.
He zips around on a BMW motorcycle for his weekday commute.
‘It suits my lifestyle, and it’s good value,’ he said, adding that the Audi’s road tax costs him only about $400 a year.
The Hoois and the Ngs regularly drive to Malaysia, which does not impose restricted hours on red-plate cars.
Off-peak cars can be used here between 7pm and 7am on weekdays, after 3pm on Saturdays and all day on Sundays and public holidays.
Owners pay $20 for a day licence to use the car outside these hours.
Last year, 10,381 off-peak cars were registered - fewer than the 11,180 sold in 2007 and the 12,476 in 2006, but more than the 8,252 in 2005.
Sales have dipped largely because lower COE premiums have made regular-plate cars generally more affordable to those who might otherwise have gone for a red-plate ride.
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Off-peak cars get more luxurious
Trend towards public transport for weekdays, fancy cars for leisure
By Christopher Tan
17 February 2009
In the last two years, higher-end cars like Audis, BMWs, Mercedes-Benzes, Volvos and Lexuses have been seen sporting the red number plates of off-peak cars.
A Lotus Exige S and a Porsche 911 Carrera were among the 50-odd more-expensive cars registered as off-peak ones last year, with the $400,000 Carrera the most expensive among them.
Off-peak cars, which come with a one-off flat rebate of $17,000 upon registration, have typically been bought by those eyeing budget brands such as Hyundai, Mitsubishi and Kia plus Chinese brands Chery and Geely.
Industry observers say the trend towards higher-end off-peak cars could be a result of more motorists opting to use public transport on weekdays.
Mr. Alex Yap, the sales and marketing director of BMW agent Performance Motors, said the appeal of off-peak cars could go up, ‘given the current economic conditions and some of the costs associated with owning a car, including Electronic Road Pricing’.
Such cars would be attractive, especially to those who want to drive only after working hours and on weekends, and use public or company transport on weekdays.
Performance Motors sold nine off-peak BMWs last year, up from three in 2007.
Another possible reason for the rise of the fancier off-peak car is the drop in car prices due to weaker COE rates. This has brought many premium makes within reach of more buyers - especially after the rebate is thrown in.
Mr. Peter Ng, 44, bought his dream car, a Lexus GS300 luxury sedan, last February, and made it an off-peak car.
The father of two who works for a semiconductor firm said his family had two regular-plate cars, a Mitsubishi Colt Version R and a Mitsubishi Airtrek, but realised that they did not need both sets of wheels the whole day.
They sold the Airtrek and bought the Lexus for an ‘affordable’ $150,000.
Now he and his wife use the Colt for their day-to-day commute, and bask in the luxury of the Lexus on weekends.
A pleased Mr. Ng said: ‘I pay only about $1,400 on road tax a year for the Lexus. On the whole, it’s cheaper to run than the Airtrek.’
Another owner of a fancy off-peak car is marketing director John Hooi. He has had three off-peak cars, the latest a sporty Audi S3.
Married but with no children, the 38-year-old has never owned a regular-plate car.
He zips around on a BMW motorcycle for his weekday commute.
‘It suits my lifestyle, and it’s good value,’ he said, adding that the Audi’s road tax costs him only about $400 a year.
The Hoois and the Ngs regularly drive to Malaysia, which does not impose restricted hours on red-plate cars.
Off-peak cars can be used here between 7pm and 7am on weekdays, after 3pm on Saturdays and all day on Sundays and public holidays.
Owners pay $20 for a day licence to use the car outside these hours.
Last year, 10,381 off-peak cars were registered - fewer than the 11,180 sold in 2007 and the 12,476 in 2006, but more than the 8,252 in 2005.
Sales have dipped largely because lower COE premiums have made regular-plate cars generally more affordable to those who might otherwise have gone for a red-plate ride.
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