The Ultimate Guide to PARF and COE Rebates in Singapore: Maximizing Your Car’s Value

Key Highlights

Introduction

In Singapore, owning a car comes with substantial costs – from the Certificate of Entitlement (COE) to various taxes and fees. However, there’s a silver lining: when it’s time to part ways with your vehicle, you can reclaim significant value through PARF and COE rebates.

Many car owners remain unaware of exactly how much money they could get back through these rebates. Understanding how to calculate your car’s deregistration value isn’t just useful knowledge – it directly impacts your financial decisions regarding vehicle ownership.

HIGHLIGHTED ADDITION: Singapore has a unique vehicle ownership system linked to the Preferential Additional Registration Fee (PARF) and Certificate of Entitlement (COE) rebates. These rebates help lower costs when cars are taken off the road. Managed by the Land Transport Authority (LTA), the goal is to reduce traffic congestion while providing financial rewards to responsible car owners.

At Scrap Car Singapore | Top Rated Specialist, with over 25 years of experience as Singapore’s leading scrap car dealer, we’ve guided thousands of vehicle owners through this process. This comprehensive guide breaks down everything you need to know about calculating your rebates, helping you maximize returns when deregistering your vehicle.

Understanding the Basics: What Exactly are PARF and COE Rebates?

HIGHLIGHTED ADDITION: The COE is an integral part of vehicle ownership in Singapore. It gives you the right to own and use a vehicle on public roads for a set period of time. The bidding process for a COE depends on the quota premium, which fluctuates based on demand. Each COE is divided into categories, each with different premiums and terms. Understanding these details is essential for making informed decisions when buying or deregistering a vehicle.

Overview of PARF and COE Rebates in Singapore

The PARF and COE rebates are monetary incentives available to vehicle owners when they deregister their cars in Singapore. These rebates help people recover a portion of their costs. The amount recovered depends on the vehicle’s age, type, and when they deregister it. These rebates aim to lessen the financial burden of owning a car in one of the most expensive car markets in the world.

Before diving into calculations, let’s clarify what these rebates actually are:

What is a COE Rebate?

The Certificate of Entitlement (COE) gives you the right to register, own, and use a vehicle in Singapore for 10 years. When you deregister your vehicle before your COE expires, you’re entitled to a refund for the unused portion of your COE. This refund is called the COE rebate.

Eligibility: All vehicles with remaining COE validity are eligible for COE rebates upon deregistration.

HIGHLIGHTED ADDITION: The COE is an integral part of vehicle ownership in Singapore. It gives you the right to own and use a vehicle on public roads for a set period of time. The bidding process for a COE depends on the quota premium, which fluctuates based on demand. Each COE is divided into categories, each with different premiums and terms. Understanding these details is essential for making informed decisions when buying or deregistering a vehicle.

What is a PARF Rebate?

The Preferential Additional Registration Fee (PARF) rebate is a partial refund of the Additional Registration Fee (ARF) that was paid when your car was first registered. This incentive encourages vehicle owners to deregister their cars before they reach 10 years of age.

Eligibility: Only vehicles less than 10 years old qualify for PARF rebates. These are known as “PARF cars.”

HIGHLIGHTED ADDITION: The PARF rebate program, designed by the Land Transport Authority (LTA) in Singapore, encourages environmentally friendly practices among car owners. It provides a refund to those who choose to deregister or scrap their vehicles before they reach 10 years of age. The amount refunded is based on the vehicle’s open market value (OMV) and its age at deregistration.

Together, these rebates form your car’s “deregistration value” – the amount the Land Transport Authority (LTA) will refund you when you deregister your vehicle.

How to Calculate Your COE Rebate (Step-by-Step)

COE Rebate Formula

The formula for calculating your COE rebate is straightforward:

Where:

• Quota Premium (QP) is the amount paid for your COE when you registered your vehicle or renewed its COE
• Unused COE Period is the number of months remaining on your COE at the time of deregistration
• 120 represents the total COE validity period in months (10 years)

What You Need to Know

To calculate your COE rebate, you’ll need two key pieces of information:

1. The Quota Premium (QP) you paid for your current COE
2. Your COE expiry date

You can find both of these details by:

• Checking your vehicle registration card
• Visiting the OneMotoring website and logging in with your SingPass
• Using the “Enquire PARF/COE rebate” service under “Digital Services”

Example Calculation

Let’s say you bought a car with a COE that cost $45,000, and you’re deregistering it with 5 years and 3 months (63 months) of COE validity remaining:

COE Rebate = ($45,000 × 63) ÷ 120

COE Rebate = $2,835,000 ÷ 120

COE Rebate = $23,625

This means you would receive $23,625 as your COE rebate when deregistering your vehicle.

How to Calculate Your PARF Rebate (The Multi-Step Process Explained)

Calculating your PARF rebate is more complex and requires several steps:

Step 1: Find Your Car’s OMV

The Open Market Value (OMV) is the actual price of your vehicle when it was first imported into Singapore, before taxes and fees. It’s the baseline for calculating your ARF, which in turn determines your PARF rebate.

To find your car’s OMV:

1. Visit the OneMotoring website
2. Log in with your SingPass
3. Navigate to “Vehicle Hub” → “Vehicle Services” → “Vehicle Details”
4. Look for the OMV under your vehicle information

Step 2: Calculate ARF Payable

The Additional Registration Fee (ARF) is a tax imposed when registering your vehicle in Singapore. It’s calculated as a percentage of your car’s OMV using a tiered system.

For cars registered with COEs obtained from February 2023 onwards, the ARF tiers are:

Vehicle OMV	ARF Rate
First $20,000	100%
Next $20,000 (i.e., $20,001 to $40,000)	140%
Next $20,000 (i.e., $40,001 to $60,000)	190%
Next $20,000 (i.e., $60,001 to $80,000)	250%
Above $80,000	320%

ARF Calculation Example

Step 4: Final PARF Rebate Calculation

Now, you can calculate your PARF rebate using this formula:

PARF Rebate = ARF × Applicable PARF Percentage

Following our example with the $50,000 OMV car that has an ARF of $67,000, if the car is 4 years old:

PARF Rebate = $67,000 × 75%

PARF Rebate = $50,250

This means you would receive $50,250 as your PARF rebate when deregistering your 4-year-old vehicle.

The Grand Total: Calculating Your Deregistration Value

Your car’s total deregistration value (also known as “paper value”) is simply:

Deregistration Value = COE Rebate + PARF Rebate (if eligible)

Combined Example

Let’s combine our examples:

• COE Rebate: $23,625
• PARF Rebate: $50,250

Total Deregistration Value: $23,625 + $50,250 = $73,875

This is the amount you would receive from LTA when deregistering your vehicle.

The Easiest Way: Use the LTA Online Calculator!

If all these calculations seem overwhelming, there’s a much simpler option. LTA provides an online calculator that does all the work for you.

How to Use It

1. Visit the OneMotoring website
2. Log in with your SingPass
3. Navigate to “Digital Services” → “Enquire PARF/COE rebate”
4. Select your vehicle and submit the query
5. View your calculated PARF and COE rebates instantly

This official tool ensures accuracy and eliminates the risk of calculation errors. It’s the most reliable way to check your car’s deregistration value.

Key Differences: PARF Car vs. COE Car

Understanding whether your vehicle is a PARF car or COE car is crucial when planning for deregistration:

Why It Matters

The distinction significantly impacts your vehicle’s value in the used car market. PARF cars command higher prices because buyers know they’ll receive both rebates when deregistering. When deciding whether to renew your COE or buy a new car, understanding the transition from PARF to COE status is crucial for making informed financial decisions.

Don’t Confuse Deregistration Value with Scrap Value

Many vehicle owners mix up these two important terms:

Deregistration Value Definition

This is the sum of your PARF and COE rebates paid by LTA when you deregister your vehicle. It’s also commonly called “paper value.”

Scrap Value Explained

Scrap Value = Deregistration Value + Body Value

The “body value” is what scrapyards or exporters like SC Export are willing to pay for your vehicle’s physical components. This depends on:

• Current market conditions
• Vehicle condition
• Demand for parts
• Export potential

When you approach a scrap car dealer, they’ll offer you the total scrap value, which includes both the deregistration value from LTA and the body value they’re willing to pay.

What Can You Do With Your Rebates?

When you receive your PARF and COE rebates, you have several options:

Available Options

1. Cash Out: Receive the full amount in cash, which you can use for any purpose.
2. Offset a New Vehicle Purchase: Apply the rebate directly toward your next vehicle’s purchase price, reducing your upfront costs.
3. Offset COE Renewal Fees: If you’re renewing your COE instead of deregistering, you can use the PARF rebate to offset the renewal premium.

Important Validity Note

Your rebate eligibility is valid for 12 months after deregistration. If you don’t use or claim your rebates within this period, they will expire, and you’ll lose the funds. This is particularly important if you’re planning to use the rebates for a new vehicle purchase.

Vehicle Lifespan & Renewal Options: Important Context

Understanding your vehicle’s lifespan in Singapore helps put PARF and COE rebates in proper context:

Statutory Lifespan of Vehicles

Vehicle	Statutory Lifespan
Car	No statutory lifespan (except tuition cars registered under companies: 10-year statutory lifespan applies)
Motorcycle	– First registration before 1 July 2003: Statutory lifespan expires 30 June 2028 First registration from 1 July 2003 or under Vintage (Restricted)/Revised Vintage/Classic Vehicle Scheme: No statutory lifespan
Omnibus	17 years
Excursion Bus / Private Bus / Private Hire Bus / School Bus	20 years
Goods Vehicle	20 years
Taxi	Non-electric taxi: 8 years Electric taxi registered before 15 September 2022 (not opted-in for 10-year lifespan): 8 years Electric taxi registered from 15 September 2022 or opted-in: 10 years

Renewal Options

While private cars can theoretically be renewed indefinitely by paying for a new COE, other vehicle types have more restrictions. For commercial vehicles, taxis, and buses, once they reach their statutory lifespan, they must be deregistered.

For private car owners, the decision to renew your COE involves weighing the costs against the benefits:

• COE Renewal Cost: The prevailing quota premium at the time of renewal
• Loss of PARF Rebate: Once you renew your COE, your car becomes a “COE car” and loses PARF eligibility
• Maintenance Costs: Older cars typically require more maintenance
• Depreciation: COE cars depreciate differently than PARF cars

Critical Timing: Avoid Late COE Renewal Fees!

If you decide to renew your COE instead of deregistering, timing is crucial:

Importance of Timely Renewal

You should start the COE renewal process at least one month before your current COE expires. If you renew late, you’ll incur late renewal fees based on your vehicle type:

Vehicle Type	Late Renewal Fee
Motorcycle	$50
Private Motor Car (1,000cc and below)	$50
Private Motor Car (1,001cc to 1,600cc)	$100
Private Motor Car (1,601cc to 2,000cc)	$150
Private Motor Car (2,001cc to 3,000cc)	$200
Private Motor Car (more than 3,000cc)	$250
Business Service Passenger Vehicle (Company Car)	$250
Goods Vehicle and Public Service Vehicle	$250
Others	$250

Serious Warning

If you fail to renew your COE within one month after its expiry date, LTA will force the deregistration of your vehicle. At this point, you’ll lose the opportunity to renew, and your vehicle must be scrapped or exported.

Why Bother Calculating? Making Informed Financial Decisions

Understanding your car’s deregistration value isn’t just an academic exercise – it directly impacts major financial decisions:

Decision Points

1. Sell, Scrap, or Renew? When your COE approaches expiry, knowing your exact rebate figures helps you compare:
   • The total value you’d receive from deregistration
   • The cost of COE renewal
   • Current market value if you were to sell the vehicle
2. Timing Your Deregistration In some cases, deregistering just a month earlier or later can significantly affect your rebate amount, especially if it crosses a PARF percentage threshold.

Financial Planning

Knowing your car’s deregistration value in advance allows you to:

• Budget accurately for your next vehicle purchase
• Negotiate better when selling your car privately
• Plan for COE renewal costs if you decide to keep your vehicle
• Make data-driven decisions rather than emotional ones

Getting Professional Help with Scrap Car Singapore

While this guide equips you with the knowledge to calculate your own rebates, professional assessment can often uncover additional value:

Our Expert Assessment Process

At Scrapcar Export Pte Ltd, with over 25 years of experience in the Singapore car scrap industry, we provide:

• Free, no-obligation assessments of your vehicle’s value
• Expert advice on optimal timing for deregistration
• Handling of all paperwork and LTA procedures
• Same-day payment upon collection

Value Beyond Calculations

Our team considers factors beyond just “paper value” when assessing your vehicle, including:

• Export potential for specific makes and models
• Parts demand in international markets
• Current market trends affecting vehicle values
• Condition-based assessments that may increase your payout

Conclusion

Understanding PARF and COE rebates is essential for every Singapore car owner. These rebates can return tens of thousands of dollars to your pocket when it’s time to part with your vehicle.

Whether you’re approaching your COE expiry date, considering selling your car, or simply planning ahead, knowing how to calculate your deregistration value empowers you to make informed decisions.

HIGHLIGHTED ADDITION: Navigating the rules of PARF and COE rebates in Singapore can significantly boost the value of your car. Understanding eligibility criteria, calculation methods, and influencing factors helps car owners make smarter choices throughout their vehicle ownership journey. It’s important to stay current with legal requirements and documentation to successfully apply for rebates. By leveraging this knowledge, car owners can maximize their rebates while complying with LTA regulations.

For personalized assessment and to maximize your vehicle’s value, contact Srapcar Singapore at 11 Woodlands Close #10-41

Woodlands 11, Singapore 737853. Our team of experts will guide you through the entire process, ensuring you receive the best possible value for your vehicle.

Remember that while online calculators provide estimates, a professional assessment often reveals additional value opportunities that standard calculations might miss. With over 25 years of experience helping Singaporeans maximize their returns, we’re here to ensure you get the most from your vehicle deregistration.

Frequently Asked Questions

What happens to my rebates if I scrap my car early?

If you scrap your car before its COE expires, you’ll still receive your PARF and COE rebates. However, the earlier you deregister your vehicle, the higher your COE rebate will be, as it’s calculated based on the remaining months of validity. Be sure to complete all necessary paperwork with the LTA to claim these rebates properly.

Can I transfer my COE rebate to a family member?

Yes, you can transfer your COE rebate to a family member provided they meet the eligibility requirements. Ensure all documentation is submitted correctly to facilitate a smooth transfer and avoid any legal complications with the process.

What is the difference between PARF and COE rebates?

PARF rebates are based on a percentage of the Additional Registration Fee (ARF) paid when the vehicle was first registered, with the percentage determined by the vehicle’s age at deregistration. COE rebates, however, are calculated based on the remaining validity period of your Certificate of Entitlement. Understanding these differences is crucial for maximizing savings when deregistering a vehicle.

Learn more: A Quick Guide to Avoiding Hidden Costs When Scrapping Your Car