Cool response to pricey green cars

Despite attractive road tax rebates and COE schemes, most car owners are not keen because of the high price and uncertainty over resale value

By Lim Hong Ling

NO THANKS. That was the reaction of some car owners when asked if they would buy a green car.

This is despite attractive rebates on road tax and COE schemes announced by the Singapore Government on Monday.

The Straits Times spoke to 10 car owners yesterday and most of them were not interested in buying an electric or hybrid car.

The main reason was the high purchase price. Green cars are expected to cost as much as one-third more than petrol-driven cars.

Other reasons given included uncertainty over the resale value and maintenance requirements of the new-age vehicles. Other car owners were concerned that the technology would soon be superseded.

Despite a 20 per cent rebate on the open-market value and a 10 per cent rebate on road tax, the first hybrid car to go on the market here is expected to cost significantly more than a petrol car of equivalent power.

Borneo Motors, which distributes Toyota cars here, has said previously it would bring in the Toyota Prius soon, but could not give estimates of how much the vehicle would cost here.

Industry watchers, however, noted the car's high price in Japan and estimated that the 1.5-litre Prius could cost as much as $120,000 here, compared to a 1.5-litre Toyota Corolla which costs about $90,000.

Car owners say the $30,000 price difference is too steep for them to even consider the environmentally-friendly alternative.

As Mr Jeff Wong, 40, chief executive officer of a dotcom company, puts it: 'The initial investment is very substantial when buying a green car. And there are other worries like its resale value and whether the technology is proven.'

Even though the Prius is expected to give double the mileage of its petrol cousins, the fuel savings would not make up for the extra initial outlay.

Halving the average petrol bill would save about $12,000 over 10 years - far less than the $30,000 difference in purchase price.

Mr Lai Ming, 34, manager of a local firm, said: 'The savings in petrol are not worth the huge difference in prices. And the Government is giving too little an incentive for people to buy green cars.'

The high cost is probably why Honda Motors is not bringing its own hybrid car to Singapore yet, said a spokesman from Kah Motor, which distributes Honda cars here.

Although the Honda Insight is in mass production and wide use in Japan, it is also very expensive, costing about $200,000 there, he said.

Mr Gerard Ee, president of the Automobile Association of Singapore, echoed the sentiments of some car owners when he said: 'If the prices for green cars can come down to a comparable level with normal cars, I might go out and buy one.'