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| 01-Sep-2007 | Text and photos by Amery Reuben | Category: Car Buying Advice |
Viewed : 84,860 times |
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What is Paper Value
Many sellers are often clueless when questioned about the paper value of their cars.
Paper value is simply the total rebate that you get from Land Transport Authority (LTA) should you decide to de-register your car. The paper value is made up of the Certificate of Entitlement (COE) Rebate and Preferential Additional Registration Fee (PARF) Rebate. Do note that COE cars do not have any PARF Rebate, therefore the paper value is made up of the COE Rebate based on the Prevailing Quota Premium paid.
What are the uses of PARF/COE rebates
Both the PARF and COE rebates received when a car is de-registered can be used to offset the Additional Registration Fee (ARF), Registration Fee (RF) and Quota Premium when registering for a new car.
If you do not intend to purchase a new car, the rebates can be transfered to another holder’s name. However, do note that any excess rebate amount not used will be lapsed as these rebates are non-refundable in cash. You may also choose to combine multiple PARF/COE rebates to offset the fees for a new car purchase.
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COE Rebate
The COE Rebate can be easily calculated according to the age of the car.
Rebate = (Quota Premium Paid / 10 Years) x Number of Years Left
*Please note that the value will vary accordingly with the date of de-registration. The value will decrease as the car gets older every day.
PARF Rebate
PARF Rebate is calculated based on a percentage of the Open Market Value (OMV) of the car.
| Age of vehicle |
PARF Rebate (For cars registered with COE obtained before May 2002 tender exercise) |
PARF Rebate (For cars registered with COE obtained from May 2002 to March 2004 tender exercise) |
PARF Rebate (For cars registered with COE obtained after March 2004 tender exercise) |
PARF Rebate (For cars registered with COE obtained after Feb 2008 tender exercise) |
| Less than 5 yrs old |
130% of OMV |
97.5% of OMV |
82.5% of OMV |
75% of OMV |
| 5 to 6 yrs old |
120% of OMV |
91% of OMV |
77% of OMV |
70% of OMV |
| 6 to 7 yrs old |
110% of OMV |
84.5% of OMV |
71.5% of OMV |
65% of OMV |
| 7 to 8 yrs old |
100% of OMV |
78% of OMV |
66% of OMV |
60% of OMV |
| 8 to 9 yrs old |
90% of OMV |
71.5% of OMV |
60.5% of OMV |
55% of OMV |
| 9 to 10 yrs old |
80% of OMV |
65% of OMV |
55% of OMV |
50% of OMV |
| More than 10 yrs old |
0% of OMV |
0% of OMV |
0% of OMV |
0% of OMV |
| * the above table does not apply to weekend cars, company cars, and private hire cars |
As shown in the table, COE cars or cars more than 10 years old do not have any PARF rebates as the OMV of the cars were forfeited during the renewal of COE.
High Paper Value vs Low Paper Value
In recent years, the paper value has become a good gauge for car dealers in setting up quotations for buying used car.
Reason being, paper value forms the basic cost of the used car. In the event of a total loss for the car, the paper value would be the minimum retrievable money that the car owner can get back.
Due to the fluctuation of the COE value over the years, there is a huge variation in COE rebate values. Thus, the higher the COE rebate, the more you will get back for the car. |
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