Monday, October 19, 2009

New OPC scheme is Not that good

On 29th Aug this year, the Land Transport Authority (LTA) announced that it will review its Off-Peak Car (OPC) scheme and will implement a few changes. One of the changes is that LTA will now give cash rebates of up to $1,100 once every 6 months after owners convert their normal cars to the new OPC scheme.

Now Singaporeans are jumping up and down in happiness at the news, LTA is paying you to drive your car, but frankly I don’t get why Singaporeans are so happy about the new scheme. Currently when a Singaporean change his car from a normal car to an off-peak car, he will get an extra rebate base on long he drives his vehicle as an OPC vehicle. He will receive this rebate of $2,200 per year, in one lump sum upon the de-registration of the vehicle provided the vehicle is below 10 years old and is eligible for PARF.

Under the new scheme, LTA will give cash rebates of up to $1,100 once every 6 months. So basically there’s no change! Only thing is that instead of giving it to you in one lump sum at the end, they are giving it to you piecemeal once every 6 months. If anything, the new scheme is worse because you don’t get the money in one lump sum but piece by piece.

So all those Singaporeans jumping in happiness; please sit down. LTA is not paying you to drive your car; they are just giving the money to you piece by piece.


Anonymous said...

Have you heard of the concept called "time value of money?"

tiger4™ said...

Makes no diff 2 me as I own an OPC. I am jumping up n down because by paying a bit more road tax, I can drive full day on Sat

Ghost said...

Time value of money only works if the future is bright...which might not be the case now.
As for the Road Tax, it depend on the CC of your vehicle because the Road Tax discount will be cut from $800 to $500, so you might exactly have to pay a lot more Road Tax then you are doing now.

Lionel said...

To the 1st comment, have you ever heard of the concept called "sg govt will never seem to make life easier for singaporeans unless it can profit from it or has made a boo-boo needing an excuse?"