MoneyFitt

Being honest is essential when determining the reason you wish to drive. We often want to own a car for social status purposes, as a symbol of wealth, and be fully aware that it may not yet be necessary.
Owners may be eligible for the Preferential Additional Registration Fee (PARF) rebate system if all three conditions are met.
If you are thinking of selling your current car, you’ll want to know its deregistration value, which is the sum of the PARF rebate and COE rebate.

Owners may be eligible for the Preferential Additional Registration Fee (PARF) rebate system if all the three conditions below are met:

The car is deregistered before it is 10 years old
The car was a new car at the time of registration in Singapore, or an imported used car registered in Singapore on or after 1st September 2007
The car must not have been laid up before

Deregistration value = the sum of the PARF rebate and COE rebate

The deregistration value of a car can also be known as the paper value!

Let’s run through an example:

For the first $20,000 of OMV, the ARF rate is 100%
The OMV is less than $20,000. Therefore, OMV = ARF = $18,500
Car is 7 years old, meaning that the PARF rebate is 60% of the ARF (or $60,000, whichever is lower)

PARF rebate = $18,500 x 0.6 = $11,100

COE Rebate = (Quota Premium of 10 year COE paid X number of months left)/120 months

Example: You own a vehicle, the details are as follows:

Total unused period = period from 3rd Jan 2022 to 5th June 2025 = 41.1 months

COE rebate = $61,000*41.1 months/120 months

COE rebate = $20,892.50

= sum of the PARF rebate and COE rebate

= $11,100 + $20,892.50 = $31,992.50

Not to be confused with deregistration value!

Scrap value = Deregistration value + body value

Your deregistered value is paid by the LTA, whereas the body value is the amount that a dealer is willing and able to pay for your car!

Photo by Johannes Plenio on Pexels

SELLING A CAR. COMPLETED. ✅

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