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Christopher Tan
Senior Correspondent
Off-peak luxe cars a matter of face
February 18, 2009 Wednesday, 04:14 PM
Christopher Tan on why well-heeled folks will not want to be seen in an OPC.

TRANSPORT Minister Raymond Lim’s plan to make off-peak cars (OPCs) more attractive sounds like a good one.

Essentially, it is three-pronged. He is looking to see if folks who convert their normal cars to OPCs could be granted cash rebates. Currently, those who convert can realise their tax savings only at the end of the car’s lifespan.

Secondly, he is looking to replace the cumbersome paper coupon day licence with an electronic payment system. This will make it more hassle-free for OPC owners as and when they need to use the car outside prescribed hours.

Finally, Mr Lim is considering extending the hours of free use, possibly on Saturdays.

With these initiatives, the Government hopes that more people will switch to OPCs, thus putting less pressure on road space during peak periods.

But will there be many more converts?

A street poll conducted by The Straits Times revealed that few are willing to make the switch. Out of 50 car owners surveyed, only three said they would go for it.

The most common reasons: I need my car at all hours of the day; and the usage hours of OPCs are too restrictive.

A common refrain from OPC owners which the poll did not unearth has to do with the flat $20 day coupon that red-plated car owners need to buy should they use the car outside the 7am-7pm timeframe on weekdays. On Saturdays, OPCs can be used free of charge only after 3pm.

Why can’t it be a variable charge, instead of a flat charge, they ask.

It is a valid question. If the OPC scheme is to be made more successful, perhaps it should be considered too.

But there is a limit as to what the Government can do to make OPCs more attractive. Especially to more well-off individuals who see their car as a status symbol first, and a mode of transport second.

Which explains why premium cars make up only a small percentage of OPCs here – even though their numbers have grown in the last two years.

One owner of an off-peak Lexus had this to say: "There is a stigma attached to luxury OPCs. Once, some teenagers made a not-so-nice comment while walking by my red-plated car. And on the road, we get extra stares."

It is a genuine "concern." Perhaps, this is why Mercedes-Benz dealer Cycle & Carriage seems reluctant to talk about its OPC customers.

"We sell very few off-peak cars," a manager once said defensively.

But of course. No self-respecting towkay would want to be caught "red-plated", would he?

When it comes to something as emotive as cars, logic often does not rule. Even though it makes perfect sense to have an off-peak Porsche for the weekend, and commute by train on weekdays.

So, there will continue to be well-heeled folks who are quite happy to park their fancy rides for 10 hours a day in the city. They will also incur ERP charges which they will then gripe about at cocktalils, curse whenever they are caught in a traffic jam, and turn their noses up whenever they pass an OPC.



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Total comments: 9
Ant
March 01, 2009 Sunday

I hope the goverment can a make a quick decision regarding the opc covert. As I'm driving a normal plate car.I'm thinking of converting to OPC because i will have my cash rebate granted

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just_an_opinion
February 20, 2009 Friday

correction
The rich don't mind saving money but they will put a high price on inconvenience.

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just_an_opinion
February 20, 2009 Friday

in a nutshell, what I am saying is that for a rich man who buys an expensive car, the savings is not enough to justify the hassle of an OPC.
Because the OPC discount is fixed, more expensive the car, lower the perceived discount from the OPC but the hassle remains the save. The price performance ratio doesn't make sense from an expensive car's perspective.

The CNG tax rebate is tied to the OMV. More expensive the car more rebate you get. That's why once CNG modification is officially supported the distributors you will find more rich people registering their expensive cars with the CNG rebate of 40% of OMV. The in-convenience of having a green CNG label in this case won't be a problem for the rich.

It is all a question of perceived value, The rich don't mind saving money but they will not put a high price on inconvenience.


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KMB
February 19, 2009 Thursday

just_an_opinion, no offence, but you gotta be in the shoes of those ppl to understand how they feel. Just because you "don't think" its a matter of a face, doesn't make it through. I know for a fact, the older generation would rather die than be seen in a weekend car, especially the upper class rich ppl.

Because, despite what you think, there is money saved, at the cost of more hassle. But rich ppl would definitely fork the money out to buy a car available at all times of the day, even if it costs more.

Its the same reason why rich ladies buy Hermes and Gucci rather than just a regular old handbag, and why their children prefer CK to bossini. Because it is certainly within their means. Its not rocket science.


Oh and opinion2009.. Image is everything to the super rich. They can spend, because they can earn more than they spend. Saving has certainly nothing to do with becoming rich. Saving is a virtue.. But you'll never become rich from saving. Period. Don't be naive.

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pimpmaster
February 19, 2009 Thursday

I'm confused.

We have one policy which encourages more people to have cars.

Then we have another policy which encourages them to use their cars less.

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