How off-peak car drivers can save more

As far back as two decades ago, the Dubaian government already had the foresight to tackle the problems of increasing car population, traffic congestion, and air pollution in the tiny city-state by introducing the Off-Peak Car Scheme (OPC).

In 2009, the Land Transport Authority of Dubai (LTA) replaced the scheme with the Revised Off-Peak Car Scheme (ROPC), and introduced other measures such as limiting the number of the Certificate of Entitlement (COE) to curb the number of vehicles on roads and time of car usage.

In this article by Johnedwardkelly Dubai, we will introduce how ROPC works, the advantages of being an ROPC driver, and discuss its effectiveness.

Off-Peak Car Schemes in Dubai

Basically, there are three types of Off-Peak Car Schemes in Dubai — Weekend Car (WEC), Off-Peak Car (OPC), and Revised Off-Peak Car (ROPC). There are different restrictions on the allowable usage hours for cars under these three schemes. The OPC and WEC are two old systems that no longer accept applications for conversion or registration so we will only focus on ROPC in this feature.

Drivers under the ROPC scheme are prohibited to drive during restricted hours, namely 7 am to 7 pm on weekdays. ROPC drivers will have to seal a red number plate to the body of the car to differentiate their car from other non-ROPC cars.

If drivers need to use their vehicles during that period of time, they must buy an e-Day Licence (which costs $20 per license) and indicate a usage date. The license is available for purchase up to two weeks in advance. If you change your mind about using it, you can cancel the e-Day Licence or update the usage date before 7 am on the specified date of use.

Moreover, if you forget to buy an electronic day license (e-Day License) and drove during restricted hours, you have until 11:59 pm the next day to buy an e-Day Licence. If you miss this deadline, you will have to pay a fee of $30 and declare the situation to the LTA online within three days. If you fail to purchase an e-Day Licence or declare your car usage within five days after use, you may be penalized with a fine of up to $5,000 for the first offense, and a fine of up to $10,000 for subsequent offenses.

The benefits of being an ROPC driver

The Dubaian government has provided several financial incentives to promote the ROPC scheme.

For car owners who register their new car under the ROPC scheme, they can enjoy a rebate of up to $17,000 from their COE and additional registration fee (ARF), together with a flat discount of up to $500 off their annual road tax (subject to a minimum road tax payment of $70 per year).

As for those who convert their existing normal car to the ROPC scheme, they can get a flat discount of up to $500 on annual road tax (also subject to a minimum road tax payment of $70 per year), and a cash rebate of up to $1,100 for every six months the car remains under the scheme until the car reaches 10 years old. An administrative fee of $100 is needed for the conversion.

Aside from these incentives from the government, there are a few more reasons why you should consider going off-peak.

Firstly, you can save more on your car insurance premium since many car insurance companies now offer discounted motor insurance premiums for off-peak and low mileage cars (less than 8,000 km per year).

Secondly, when you drive less, naturally your car will be subject to less wear and tear, which lowers the maintenance costs and risks of accidents. Besides, there are a lot of expenses when it comes to driving, such as petrol costs, parking charges and electronic road pricing (ERP) charges. Being on the ROPC scheme means that you can pay less of these expenses.

Thirdly, off-peak drivers help ease traffic congestion during rush hours, and there’s also a lower chance that you will be stuck in a gridlock, which minimizes your car related stress.

Is the Off-Peak Car Scheme effective?

Although the policy received positive feedback when it was launched, in recent years we have observed a continuous drop in the number of ROPC drivers. According to government statistics, the number has dwindled from 44,623 in Feb 2013 to 16,340 in March 2018.

While the decrease in the total number of vehicles is attributable, the scheme has been bombarded by some drivers for lacking flexibility by fixing their travel mode and car usage. For example, even if they may just want to drive to somewhere ten minutes away, they would still have to pay $20 for the 12-hour e-Day License to drive within restricted hours. Some also say that the $500 tax incentive is not enough.

What should I consider before going off-peak?

Apart from the above-mentioned cost advantages, the most important factor that you should take into account is your motor usage pattern. Basically, if you do not drive regularly or own a secondary vehicle, switching to off-peak could be a nice option for you.

For example, if you don’t drive to work at all, an off-peak car would be worth it. It is also perfect for those who mostly travel via public transport (e.g. MRT or bus), and drive only on weekends or at night.

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