Number of off-peak cars shrinks to 13,400, dropping 73% from 2010

SINGAPORE — Once popular with those who drive only on weekends and at night, off-peak cars appear to have lost their lustre, going by the latest official statistics.

The pool of such red-plated vehicles has shrunk to 13,449 as of July, down 73.1 per cent from its peak of 50,040 in 2010, figures from the Land Transport Authority (LTA) showed.

In the first half of this year alone, 517 off-peak cars were deregistered, even as 1,590 were registered over the same period.

The proliferation of quick and affordable rides by ride-sharing firms, such as Grab and Gojek, could have contributed to the declines, said transport analysts.

The initiative began as the Weekend Car Scheme in 1991, allowing more Singaporeans to own cars without worsening congestion. Drivers received rebates in return for shorter hours on the roads.

The scheme was revamped to the Off-Peak Car scheme in 1994 and the latest version, the Revised Off-Peak Car scheme, was rolled out in 2010.

Drivers get a rebate of up to S$17,000 on their car’s Certificate of Entitlement (COE) premium and Additional Registration Fee, as well as annual road-tax discounts of up to S$500.

MORE DRIVERS SCRAPPING CARS

Transport economist Walter Theseira said the sharp falls in the last few years were due to many off-peak cars bought in the late 2000s — when COE premiums were low — being scrapped as they reached the end of their COE lifespan a decade later.

“Buyers generally find it uneconomic to renew the COE because the COE premium is now much higher,” said Associate Professor Theseira, who is with the Singapore University of Social Sciences.

For some owners who previously drove off-peak cars, though, it was a matter of convenience.

Madam Faith Chan, 32, gave up her Hyundai Elantra off-peak car last month, only a year after she bought it.

Madam Chan, who has a four-year-old daughter, left her job in July this year to become a full-time mother. She switched to a regular car, as she needed it throughout the week.

Off-peak cars can be used from 7pm to 7am on weekdays, and throughout the day on weekends and public holidays.

Madam Chan said she found this inconvenient. When she occasionally wanted to drive in the day, she had to buy an “e-Day” licence at S$20 daily.

“If I wanted to go for an early dinner, I had to wait till 7pm before I could go out,” she said.

Despite the S$17,000 rebate and other perks, Madam Chan said her car sat idle in a public-housing car park — for which she paid S$110 in fees every month — on weekdays.

She suggested that the authorities offer discounted parking rates at public car parks for off-peak-car owners to make the scheme more attractive.

Mr Roy Tan, 50, converted his off-peak car to a regular one in 2013. The marketing professional said the scheme was not as attractive as it was a decade ago, as car prices have risen. Singaporeans can also save on parking and Electronic Road Pricing (ERP) fees if they commute via private-hire cars, he added.

COST SAVINGS

Some drivers, nevertheless, still see benefits.

Mr Mattheus Wee, 23, said his family has saved much from using an off-peak car, including on petrol. He also drives less now.

“There’s a place for the off-peak-car scheme, especially amid Singapore’s moves to become a greener city,” said the liberal-arts student from the University College London.

Ms Shelly Lai, 44, switched from a regular to an off-peak car two or three years ago.

The office manager said she has saved much on road tax over the years, paying just over S$100 a year now, compared with S$700 to S$800 previously.

Still, Ms Lai said she could revert to a regular car once the next-generation satellite-based ERP system kicks in from next year — since it charges motorists for the distance they travel on congested roads, rather than a flat fee.

Indeed, Assoc Prof Theseira said the Government should study if the future satellite-based ERP system could allow a shift from upfront car taxes to more usage-based ones.

Agreeing, transport consultant Gopinath Menon said: “When the (new) ERP is in operation with all cars having on-board units with distance-based charging, it might be possible to modify the off-peak-car scheme.”

SHOULD THE SCHEME GO?

For now, Assoc Prof Theseira’s preference is to remove the scheme.

In its place, the authorities could roll out policies that allow the point-to-point transport sector — which includes taxis and private-hire cars — to better tackle problems that motivated drivers to buy off-peak cars in the first place, such as travelling as a family.

Congestion charging should also be improved in order to reduce upfront car costs, he added.

Transport specialist Terence Fan of the Singapore Management University said a survey could be done to grasp the needs of off-peak drivers that are not sufficiently met by other mobility avenues, such as ride-hailing or car-sharing.

Mr Menon believes that there is still room for off-peak cars in Singapore, as the scheme allows those unwilling to pay a high price to own a car.

When contacted, LTA did not respond to a query on whether it was concerned that the dwindling pool of off-peak cars signals that the scheme was not working as intended.

Its spokesperson said the revised off-peak-car scheme provides another option for car owners who use their vehicles less often or predominantly during off-peak periods.

“The growing accessibility of our public-transport network, shared transport such as taxis and private-hire cars, and active mobility over the past few years has provided commuters with more options to meet their diverse needs,” LTA’s spokesperson said.

“LTA will continue to review its strategies and regulations on a regular basis to achieve a convenient, well-connected and inclusive land-transport system.”