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Understanding OMV, PARF and COE rebates for your car
26 Feb 2013|1,375,838 views
Yes, you've heard it right. You can get money from deregistering your car. This is the Land Transport Authority's (LTA) way of thanking you for decluttering the roads and reducing congestion. So, what is your car's deregistration value and how can you deregister your car? Read on to find out how you can check your car's deregistration value!
The deregistration value of your car is the sum of your Certificate of Entitlement (COE) rebate and the Preferential Additional Registration Fee (PARF) rebate. However, to calculate your PARF, you'll first need to know your vehicle's Open Market Value (OMV).
What is OMV?
The OMV of your vehicle is the price payable when it is first imported into Singapore. It's the actual price of your vehicle before all taxes and other surcharges (and there are many) - like COE, GST, registration fee and the dealer's profit margins - are added in. The OMV is inclusive of purchase price, insurance, freight and delivery of your car to the country.
What is ARF?
The Additional Registration Fees (ARF) is a tax imposed upon the registration of your vehicle. The OMV of your vehicle is used to calculate the ARF, which is used to determine the PARF rebate later on.
*These ARF rates were last updated on 14 February 2023
- For cars with an OMV of up to $20,000:
ARF = OMV
Your ARF value is 100% of your OMV value.
- For cars with an OMV ranging from $20,001 to $40,000:
ARF = [(OMV - $20,000) x 140%] + $20,000
Your ARF value is 140% of incremental OMV.
- For cars with an OMV from $40,001 to $60,000:
ARF = [(OMV - $40,000) x 190%] + $48,000
The ARF value is 190% of incremental OMV.
- For cars with an OMV from $60,001 to $80,000:
ARF = [(OMV - $60,000) x 250%] + $86,000
The ARF value is 250% of incremental OMV.
- For cars with an OMV above $80,001:
ARF = [(OMV - $80,000) x 320%] + $136,000
The ARF value is 320% of incremental OMV.
| Vehicle OMV ($100,000) | ARF Rate | ARF Payable |
| First $20,000 | 100% | 100% x $20,000= $20,000 |
| Next $20,000 (i.e. $20,001 to $40,000) | 140% | 140% x $20,000= $28,000 |
| Next $20,000 (i.e. $40,001 to $60,000) | 190% | 190% x $20,000= $38,000 |
| Next $20,000 (i.e. $60,001 to $80,000) | 250% | 250% x $20,000= $50,000 |
| Above $80,000 | 320% | 320% x $20,000= $64,000 |
The total ARF payable in this case, based off the table above, is ($20,000 + $28,000 + $38,000 + $50,000 + $64,000) = $200,000.
So, what is my car's deregistration value?
As mentioned earlier, your vehicle's deregistration value is the sum of a COE rebate and a PARF rebate:
[COE rebate + PARF rebate] = Deregistration value
Sgcarmart
Scrap & Export your Car
Get quotes from 100+ LTA authorised scrapyards & exporters.
Get Free Quote
What is my COE rebate? How do I calculate my COE rebate?
When you deregister your car before your COE expires in its 10th year, you'll receive a rebate from LTA for the remaining COE left on your car. This amount is based off the Quota Premium (QP) that you'd last paid.
Your COE rebate is:
COE rebate = (Quota Premium Paid x Number of months left)/120 months
So, lets us use an example of a car which has a COE that costs $38,000. Let's say this COE expires on 5 June 2020, and you choose to deregister it on 2 May 2012.
Your unused duration of COE is:
From 2 May 2012 to 5 June 2020 to = eight years one month and three days
= 97.1 months
And therefore, your COE Rebate amounts to = ($38,000 x 97.1) / 120 = $30,748.
But how do I calculate my PARF rebate?
You're entitled to a PARF rebate when you deregister a car that's less than 10 years old. This rebate allows you to recover the ARF paid when you first registered your car. Simply put, your PARF rebate depends on the age of your vehicle and its ARF value.
The PARF rebate is based off a percentage of your ARF value, which is based on your vehicle's OMV.
Here's how you calculate your PARF rebate:
PARF rebate = ARF x % based on the age of your car
| Age of vehicle at deregistration | PARF rebate (For cars registered with a COE obtained from May 2002 to 8 February 2023) | PARF rebate (For cars registered with a COE obtained from 22 February 2023 onwards) |
| Not exceeding 5 years | 75% of ARF paid | 75% of ARF paid or $60,000 (whichever is lower) |
| Above 5 years but not exceeding 6 years | 70% of ARF paid | 70% of ARF paid or $60,000 (whichever is lower) |
| Above 6 years but not exceeding 7 years | 65% of ARF paid | 65% of ARF paid or $60,000 (whichever is lower) |
| Above 7 years but not exceeding 8 years | 60% of ARF paid | 60% of ARF paid or $60,000 (whichever is lower) |
| Above 8 years but not exceeding 9 years | 55% of ARF paid | 55% of ARF paid or $60,000 (whichever is lower) |
| Above 9 years but not exceeding 10 years | 50% of ARF paid | 50% of ARF paid or $60,000 (whichever is lower) |
| Above 10 years | N.A. | N.A. |
*Note that all cars registered with a COE obtained from 22 February onward will have their PARF rebates capped at $60,000.
Once again, only cars that are deregistered within 10 years of its first registration are entitled to PARF rebates. These cars are known as "PARF cars".
If your COE is a renewed one, you won't be entitled to the PARF rebate when you deregister your vehicle. Your car then becomes known as the "COE car". Find out what's the difference between PARF cars and COE cars.
Cars registered with COEs obtained after 22 February 2023 will have their PARF rebates capped at $60,000 Suppose your $100,000 OMV car from above is being deregistered as above, with eight years more to go.
Your OMV is $100,000. As calculated above, you would have paid a total of $200,000 in ARF.
However, if this example was applied to a car that was registered with a COE obtained after 22 February 2023, the PARF rebate would be capped at $60,000. So, keeping all other factors, save the registration and deregistration date in the example above constant, your car's deregistration value will only be $60,000 + $30,748 = $90,748.
Once again, only cars that are deregistered within 10 years of its first registration are entitled to PARF rebates. These cars are known as "PARF cars".
If your COE is a renewed one, you won't be entitled to the PARF rebate when you deregister your vehicle. Your car then becomes known as the "COE car". Find out what's the difference between PARF cars and COE cars.
Let's use an example to calculate deregistration value
Your OMV is $100,000. As calculated above, you would have paid a total of $200,000 in ARF.
Based off the PARF rebate table above, your PARF rebate would be 75% of ARF, which is $150,000.
Your remaining COE has eight years, one month and three days left. As your COE cost $38,000, the COE rebate will be $30,748.
Therefore, your car's deregistration value, being the sum of the PARF rebate and COE rebate, will be ($150,000 + $30,748) = $180,748 .
Therefore, your car's deregistration value, being the sum of the PARF rebate and COE rebate, will be ($150,000 + $30,748) = $180,748 .
However, if this example was applied to a car that was registered with a COE obtained after 22 February 2023, the PARF rebate would be capped at $60,000. So, keeping all other factors, save the registration and deregistration date in the example above constant, your car's deregistration value will only be $60,000 + $30,748 = $90,748.
Confusing terms to take note of
Paper value
The paper value of your car is also known as its deregistration value. So, if someone enquires about the paper value, don't panic. They're just asking for its deregistration value.
Scrap value
Scrap value, on the other hand, is the sum of your car's deregistration value plus your car's body value. As noted previously, the deregistration value is the sum paid by LTA. The body value, though, is the amount your dealer is willing to pay to take the car off your hands.
[Deregistration value + Body value] = Scrap value
See, finding out your car's deregistration value isn't as hard as it seems. It's useful to find out how much money you'll get back upon deregistering your car.
Here are some related articles that might interested you
VES - How does it affect you as a car buyer
Need help to scrap or export your car? Quotz will handle all the calculations for you and get you the best price!
Or perhaps you would like to renew your COE and drive your car for another five to 10 years? Sgcarmart can help you secure a COE loan and renew your COE!
*This article was updated on 16 February 2023
Need help to scrap or export your car? Quotz will handle all the calculations for you and get you the best price!
Sgcarmart
Scrap & Export your Car
Get quotes from 100+ LTA authorised scrapyards & exporters.
- Find the highest scrap value for your car
- Immediate encashment
Or perhaps you would like to renew your COE and drive your car for another five to 10 years? Sgcarmart can help you secure a COE loan and renew your COE!
Sgcarmart
Get COE Renewal Advice, Loans & Paperwork
We help you renew your COE and find the best loan rates in Singapore.
- Complimentary pre-COE inspection
- Settlement of entire COE renewal paperwork
*This article was updated on 16 February 2023
Yes, you've heard it right. You can get money from deregistering your car. This is the Land Transport Authority's (LTA) way of thanking you for decluttering the roads and reducing congestion. So, what is your car's deregistration value and how can you deregister your car? Read on to find out how you can check your car's deregistration value!
The deregistration value of your car is the sum of your Certificate of Entitlement (COE) rebate and the Preferential Additional Registration Fee (PARF) rebate. However, to calculate your PARF, you'll first need to know your vehicle's Open Market Value (OMV).
What is OMV?
The OMV of your vehicle is the price payable when it is first imported into Singapore. It's the actual price of your vehicle before all taxes and other surcharges (and there are many) - like COE, GST, registration fee and the dealer's profit margins - are added in. The OMV is inclusive of purchase price, insurance, freight and delivery of your car to the country.
What is ARF?
The Additional Registration Fees (ARF) is a tax imposed upon the registration of your vehicle. The OMV of your vehicle is used to calculate the ARF, which is used to determine the PARF rebate later on.
*These ARF rates were last updated on 14 February 2023
- For cars with an OMV of up to $20,000:
ARF = OMV
Your ARF value is 100% of your OMV value.
- For cars with an OMV ranging from $20,001 to $40,000:
ARF = [(OMV - $20,000) x 140%] + $20,000
Your ARF value is 140% of incremental OMV.
- For cars with an OMV from $40,001 to $60,000:
ARF = [(OMV - $40,000) x 190%] + $48,000
The ARF value is 190% of incremental OMV.
- For cars with an OMV from $60,001 to $80,000:
ARF = [(OMV - $60,000) x 250%] + $86,000
The ARF value is 250% of incremental OMV.
- For cars with an OMV above $80,001:
ARF = [(OMV - $80,000) x 320%] + $136,000
The ARF value is 320% of incremental OMV.
| Vehicle OMV ($100,000) | ARF Rate | ARF Payable |
| First $20,000 | 100% | 100% x $20,000= $20,000 |
| Next $20,000 (i.e. $20,001 to $40,000) | 140% | 140% x $20,000= $28,000 |
| Next $20,000 (i.e. $40,001 to $60,000) | 190% | 190% x $20,000= $38,000 |
| Next $20,000 (i.e. $60,001 to $80,000) | 250% | 250% x $20,000= $50,000 |
| Above $80,000 | 320% | 320% x $20,000= $64,000 |
The total ARF payable in this case, based off the table above, is ($20,000 + $28,000 + $38,000 + $50,000 + $64,000) = $200,000.
So, what is my car's deregistration value?
As mentioned earlier, your vehicle's deregistration value is the sum of a COE rebate and a PARF rebate:
[COE rebate + PARF rebate] = Deregistration value
Sgcarmart
Scrap & Export your Car
Get quotes from 100+ LTA authorised scrapyards & exporters.
Get Free Quote
What is my COE rebate? How do I calculate my COE rebate?
When you deregister your car before your COE expires in its 10th year, you'll receive a rebate from LTA for the remaining COE left on your car. This amount is based off the Quota Premium (QP) that you'd last paid.
Your COE rebate is:
COE rebate = (Quota Premium Paid x Number of months left)/120 months
So, lets us use an example of a car which has a COE that costs $38,000. Let's say this COE expires on 5 June 2020, and you choose to deregister it on 2 May 2012.
Your unused duration of COE is:
From 2 May 2012 to 5 June 2020 to = eight years one month and three days
= 97.1 months
And therefore, your COE Rebate amounts to = ($38,000 x 97.1) / 120 = $30,748.
But how do I calculate my PARF rebate?
You're entitled to a PARF rebate when you deregister a car that's less than 10 years old. This rebate allows you to recover the ARF paid when you first registered your car. Simply put, your PARF rebate depends on the age of your vehicle and its ARF value.
The PARF rebate is based off a percentage of your ARF value, which is based on your vehicle's OMV.
Here's how you calculate your PARF rebate:
PARF rebate = ARF x % based on the age of your car
| Age of vehicle at deregistration | PARF rebate (For cars registered with a COE obtained from May 2002 to 8 February 2023) | PARF rebate (For cars registered with a COE obtained from 22 February 2023 onwards) |
| Not exceeding 5 years | 75% of ARF paid | 75% of ARF paid or $60,000 (whichever is lower) |
| Above 5 years but not exceeding 6 years | 70% of ARF paid | 70% of ARF paid or $60,000 (whichever is lower) |
| Above 6 years but not exceeding 7 years | 65% of ARF paid | 65% of ARF paid or $60,000 (whichever is lower) |
| Above 7 years but not exceeding 8 years | 60% of ARF paid | 60% of ARF paid or $60,000 (whichever is lower) |
| Above 8 years but not exceeding 9 years | 55% of ARF paid | 55% of ARF paid or $60,000 (whichever is lower) |
| Above 9 years but not exceeding 10 years | 50% of ARF paid | 50% of ARF paid or $60,000 (whichever is lower) |
| Above 10 years | N.A. | N.A. |
*Note that all cars registered with a COE obtained from 22 February onward will have their PARF rebates capped at $60,000.
Once again, only cars that are deregistered within 10 years of its first registration are entitled to PARF rebates. These cars are known as "PARF cars".
If your COE is a renewed one, you won't be entitled to the PARF rebate when you deregister your vehicle. Your car then becomes known as the "COE car". Find out what's the difference between PARF cars and COE cars.
Cars registered with COEs obtained after 22 February 2023 will have their PARF rebates capped at $60,000 Suppose your $100,000 OMV car from above is being deregistered as above, with eight years more to go.
Your OMV is $100,000. As calculated above, you would have paid a total of $200,000 in ARF.
However, if this example was applied to a car that was registered with a COE obtained after 22 February 2023, the PARF rebate would be capped at $60,000. So, keeping all other factors, save the registration and deregistration date in the example above constant, your car's deregistration value will only be $60,000 + $30,748 = $90,748.
Once again, only cars that are deregistered within 10 years of its first registration are entitled to PARF rebates. These cars are known as "PARF cars".
If your COE is a renewed one, you won't be entitled to the PARF rebate when you deregister your vehicle. Your car then becomes known as the "COE car". Find out what's the difference between PARF cars and COE cars.
Let's use an example to calculate deregistration value
Your OMV is $100,000. As calculated above, you would have paid a total of $200,000 in ARF.
Based off the PARF rebate table above, your PARF rebate would be 75% of ARF, which is $150,000.
Your remaining COE has eight years, one month and three days left. As your COE cost $38,000, the COE rebate will be $30,748.
Therefore, your car's deregistration value, being the sum of the PARF rebate and COE rebate, will be ($150,000 + $30,748) = $180,748 .
Therefore, your car's deregistration value, being the sum of the PARF rebate and COE rebate, will be ($150,000 + $30,748) = $180,748 .
However, if this example was applied to a car that was registered with a COE obtained after 22 February 2023, the PARF rebate would be capped at $60,000. So, keeping all other factors, save the registration and deregistration date in the example above constant, your car's deregistration value will only be $60,000 + $30,748 = $90,748.
Confusing terms to take note of
Paper value
The paper value of your car is also known as its deregistration value. So, if someone enquires about the paper value, don't panic. They're just asking for its deregistration value.
Scrap value
Scrap value, on the other hand, is the sum of your car's deregistration value plus your car's body value. As noted previously, the deregistration value is the sum paid by LTA. The body value, though, is the amount your dealer is willing to pay to take the car off your hands.
[Deregistration value + Body value] = Scrap value
See, finding out your car's deregistration value isn't as hard as it seems. It's useful to find out how much money you'll get back upon deregistering your car.
Here are some related articles that might interested you
VES - How does it affect you as a car buyer
Need help to scrap or export your car? Quotz will handle all the calculations for you and get you the best price!
Or perhaps you would like to renew your COE and drive your car for another five to 10 years? Sgcarmart can help you secure a COE loan and renew your COE!
*This article was updated on 16 February 2023
Need help to scrap or export your car? Quotz will handle all the calculations for you and get you the best price!
Sgcarmart
Scrap & Export your Car
Get quotes from 100+ LTA authorised scrapyards & exporters.
- Find the highest scrap value for your car
- Immediate encashment
Or perhaps you would like to renew your COE and drive your car for another five to 10 years? Sgcarmart can help you secure a COE loan and renew your COE!
Sgcarmart
Get COE Renewal Advice, Loans & Paperwork
We help you renew your COE and find the best loan rates in Singapore.
- Complimentary pre-COE inspection
- Settlement of entire COE renewal paperwork
*This article was updated on 16 February 2023
Photos by Newslink
