De-registration value / Paper Value

You must have heard of the term 'de-registration value' or also known as 'paper value' being thrown around when the casual chat of cars arises between friends or colleagues. More often than not, you would be surprised at the innocence of many local motorists who do not know what it actually means.

What is De-registration value?

[COE rebate + PARF rebate] = De-registration value

The de-registration value simply refers to the returns you are entitled to from the Land Transport Authority (LTA) when you de-register your vehicle. The de-registration value is calculated based on the COE rebates and the PARF rebate value of your car.

*Do note that COE cars (cars more than 10 years old) do not have any PARF Rebate, therefore the de-registration value for COE cars are based on the Prevailing Quota Premium paid.


COE Rebate

If a vehicle is de-registered before the end of the 10-year COE cycle, the registered owner can be granted a rebate based on the number of months and days remaining on his vehicle's COE.

COE Rebate = (Quota Premium Paid x Number of months left) / 120 months

For example if your COE costs $16,897 and expires on the 5th June 2015 but was de-registered on the 2nd January 2013.

Unused period of the COE:

From 3/1/2013 to 5/6/2015 = 2 years, 5 months and 3 days
Thus COE Rebate = ($16,897 x 29.1) / 120 = $4,097


PARF Rebate

Calculating the PARF rebate value of your car is relatively simple as there are only two factors contributing to the PARF rebate value - age of vehicle and ARF value.

Age of vehicle PARF Rebate (For COE obtained from May 2002 to March 2004) PARF Rebate (For COE obtained after March 2004) PARF Rebate (For COE obtained after Feb 2008) Less than 5 yrs old 97.5% of ARF 82.5% of ARF 75% of ARF 5 to 6 yrs old 91% of ARF 77% of ARF 70% of ARF 6 to 7 yrs old 84.5% of ARF 71.5% of ARF 65% of ARF 7 to 8 yrs old 78% of ARF 66% of ARF 60% of ARF 8 to 9 yrs old 71.5% of ARF 60.5% of ARF 55% of ARF 9 to 10 yrs old 65% of ARF 55% of ARF 50% of ARF More than 10 yrs old 0% of ARF 0% of ARF 0% of ARF

As you can refer from the table above, the PARF rebate is a certain percentage of your ARF value – which is based on the OMV (Open Market Value) of your vehicle. To fully calculate your PARF rebate, you need to know how ARF value is calculated, which is explained below.


Relation between ARF & OMV

OMV is assessed by the Singapore Customs and in general - is the actual price of the vehicle before all taxes and surcharges like COE, GST, Registration Fee, ARF, dealer's profit are imposed.

From the Budget Statement 2013 announced in February 2013, the ARF (Additional Registration Fee) value follows a tiered structure, depending on the OMV of your vehicle.

Vehicle OMV ARF Rate First S$20,000 100% Next S$30,000 (i.e. S$20,001 to S$50,000) 140% Above S$50,000 180%

• For cars with an OMV value of up to $20,000, the ARF value is at 100 percent of OMV value.
  
  ARF = OMV



• For cars with an OMV value between $20,001 to $50,000 the ARF rate will be 140 percent of
  incremental OMV.
  
  [(OMV - $20,000) x 140%] + $20,000 = ARF
  
  For example if the OMV of a vehicle is $30,000, the ARF is valued at $34,000



• For cars with an OMV above $50,000, the ARF value is 180 percent of incremental OMV.
  
  [(OMV - $50,000) x 180%] + $62,000 = ARF
  
  For example, if the OMV of a vehicle is $75,000, the ARF is valued at $107,000
  
  *The above ARF calculation do not take into account the Carbon Emissions-Based Vehicle Scheme (CEVS)