Towards fairer car ownership with COE balloting

I agree with the writer, in “Balloting and bidding in one COE system” (July 2), that a “composite” Certificate of Entitlement system would give all households here a fair chance of car ownership.

The current bidding system has made car ownership unattainable for most Singaporeans, except for the well-off. It is frustrating to see that money has become the sole factor in determining who is entitled to own a car in Singapore.

The Land Transport Authority could consider allocating, for instance, half of the COE quota to a balloting system at a discounted price, such as 50 per cent off, and the rest to the bidding system.

The rich could opt for the latter if they want to get a car immediately. The general public with lower spending power could wait for their turn through the ballot.

To curb any potential abuse of the balloting system, these buyers must top up the difference between their COE ballot price and the COE bid price if they sell their cars within, say, two years.

The top-up could apply on a tiered percentage basis for the third year onwards and up to the fifth year, or even longer, until there is no incentive to make a quick profit from the system. This could help to ensure that only genuine buyers would submit a ballot entry.

Also, car dealers cannot enter the ballot, while other restrictions could be introduced to enhance the fairness of the system. These could include allowing only one ballot entry per household, which must be submitted by a holder of a valid Singapore driving licence.