DEPRECIATION
Annual depreciation is the amount the owner loses on the value of the vehicle per year based
on the assumption that the vehicle is deregistered only at the end of its 10-yr COE life-span.
The value of the car body has not been taken into account.
The formula used to derive the figure is as follows:
Depreciation = (List Price - Minimum PARF value) รท remaining years of COE
The minimum Preferential Additional Registration Fee (PARF) value is a sum of money that the
vehicle owner gets for deregistering his vehicle at the end of its 10-yr COE. It is a function
of the Open Market Value (OMV) or Additional Registration Fee (ARF). Commercial vehicles and
cars with renewed COE have no minimum PARF value.
| Cars registered with COEs obtained between March 2002 & February 2008 |
Cars registered with COEs obtained between March 2008 & February 2013 |
Cars registered with COEs obtained from March 2013 onwards |
|
|---|---|---|---|
| Minimum PARF value |
55% of OMV or 50% of ARF |
50% of OMV or 50% of ARF |
50% of ARF |