LTA Car Rules Relaxed During Covid-19
Yes, car rules are relaxed by LTA during the Circuit Breaker (CB) and remain so as we go into Phase 1 of our re-opening post Covid-19. We write “car rules” because it has not been the same for commercial vehicles like vans and lorries, which are still required to follow all the established requirements.
So how are car rules relaxed and where has it become easier for you as a car owner?
Extended Time for Scrapping of COE Expired Cars
LTA has granted extension of time for the scrapping of vehicles that have expired during the CB period or those that expired just before.
An additional two months of time from expiry has been granted, but for some people that may not be sufficient as the car exporters are still slumbering at this time. The EPZ is closed and scrap yards are closed too.
Those that expired at the start of the CB or worse, just before the CB started, now are approaching two months past expiry already; they have one more month to dispose of their vehicle and obtain the documentary proof for submission.
If You Choose to Scrap Your Deregistered Vehicle
Latest word is that authorised LTA scrapyards are allow to operate from the 26th of May. The LTA authorised scrapyard operators are: Hup Lee Leong Hardware, Kiat Lee Machinery, Chuan Machinery, Kheng Keng Auto and Sky Metal Pte Ltd. However, you need to call and arrange for an appointment for scrapping of your car or so says LTA. That is needless to say now, we do believe that car owners with dereigistered vehicles will instead be calling for help from these yards as their cars can no longer be driven on the roads
But If You Want Better Value For Your Deregistered Car
But scrapyards may not be the best place to get good value for your deregistered car. I believe many car owners out there will be waiting and asking for exporters to quote a price for their car body. Under normal circumstances, exporters usually give better prices, we would say 80% of the time.
However, before the start of the CB, while there was still vehicle exports going on, when news of an impending lock down was only just coming, some exporters had already started to say they would be delayed in providing disposal documents and some were not taking in any more vehicles.
Difficulties With Car Exports Now
I suspect now there is still a stockpile of cars waiting to be exported, and this may take some time to clear and prices may not be that great if you have a vehicle to dispose of urgently.
As of now, some export markets that buy our used vehicles are still under lock down, and that is contributing to the slow processing and low prices, which for some models has fallen by up to 50%.
So, with that in mind, do keep an eye on the disposal time, as exporters are not able to provide a date for the disposal documents, in the case of export, the bill of lading for shipment. A large part of shipping and logistics is still not operating as per normal with less ships leaving port.
If you choose to call an exporter, do ask when you are able to get the disposal documents required by LTA, or you may be looking at a fine, even with the extended deadline, unlike scrapyards that can process your disposal document on the same day.
If you should need help to dispose of your deregistered car, feel free to contact us too (click on the WhatsApp button), we can assist to quote and arrange for the process.
COE Renewal Time Extension
This is a no. LTA has not given any extra time for COE renewals to be done, and once a car expires, late fees and late road tax still applies as usual.
We have come to know about how some car owners are wanting to game the COE renewal system. And their game plan is this: they are looking at our economic situation and predicting a COE crash when COE bidding resumes, leading to lower COE renewal prices.
That’s quite some plan, because, the rule is:
There is no extension of the one month grace period for renewing COE once expired. And if that one month’s grace is over, your vehicle needs to be disposed and rightfully cannot be renewed and driven anymore.
Not only that, the LTA will not allow lower price renewals for such vehicles. The next rule that needs to be more widely publicised is this:
Once a car is expired, you are only allowed to pay the PQP price of the month of expiry. The car owner is not allowed to pay the PQP of the month after the expiry, whether lower or higher.
Highly Hopeful, But COE Renewal Does Not Work This Way
And there are hopeful car owners now hoping to pay for PQP prices up to three months after expiry, due to the extended grace period for disposal we just mentioned above, in hope for lower PQP prices.
Are they being too smart for their own good? We get these strange hopeful queries, and we try to advise on LTA’s rules, but once the plot is hatched in their minds, they just cannot accept our explanation of COE renewal procedures. We do have a tough time with these, thankfully not too many.
Some Leeway for COE Renewal
But there is some leeway given for COE renewal through the appeal process. If, through some circumstance the COE renewal was not able to be done during the one month grace period, you can try to to appeal to allow a renewal after this grace period (but the above two rules we mentioned still apply – the late renewal fine and PQP price in month of expiry). In case you want to know the COE renewal price for May, June and July 2020 – click here.
We have worked car loan for a vehicle and that had been granted permission to renew after the one month grace period and will be completing the process during Phase 1 – this special renewal requires the LTA service counters access (on appointment basis only). The owner of the vehicle had appealed for it and it is possible you can try to do so here.
The LTA is exercising some flexibility in light of the difficulties encountered by many due to the CB. If you wish to know more, you may contact us using the form at the bottom of this page or call us at 92782880.
LTA Allows Road Tax Renewal Without Inspections
Yes, that’s right, you do not need to do inspections in order to get road tax renewed. But cars only, note that all vans and lorries still need to be inspected as usual.
However, as car insurance can be purchased without needing to meet your agent – yes SG Cash N Cars can renew your car insurance for you at a good price over the phone or email – insurance is still a pre-requisite for the renewal of road taxes.
So, as long as there is sufficient cover, you can renew your taxes and the required inspections are deferred for a period of six months.
Which car owners are allowed to skip (or actually delay) inspections? Last announcement by LTA was that those cars which need inspection during CB, on or before 30th of June can renew their tax without the inspection.
LTA Generously Turns ERP Gantries Off
ERP gantry charges have been zero for the past close to two months already, since the start of our CB on 6th of April 2020.
The gantries will remain off for the whole of the “extended CB period”, says LTA. Thank you to LTA! But their announcement was a little ambiguous, it begs the question, so gantries will remain off as we go into the re-opening Phase 1 and other phases?
We believe and are hopeful the answer is yes!
Latest update: LTA Gantries will remain off for up to 28th of June 2020 – No ERP charges for almost the full month of May.
LTA Waives OPC Seal Inspections
Better than the car inspections is seal inspection for Off-peak cars. LTA has totally waived till the next inspection is due if the date of the inspection falls between the start of the CB and 30th of June 2020. You can ignore it totally and only need to watch out for the seal inspection that is after the current one.
Do let us know what you think of the above LTA measures during this time, are they sufficient and what else would you think is required?