Viewed : 66,722 times | Text Size (



Recommended Articles

01 Sep 2007 | Text and photos by Amery Reuben | Category: Car Ownership Advice

What do you need to know and get done in order to convert your OPC to a normal car?

Application to convert an OPC to a normal car can be done at the Land Transport Authority (LTA). You will have to pay LTA S$100 as the conversion fee. In addition, you will have to fork out the pro-rated S$17K rebate which you have enjoyed when you purchased your OPC. The formula to calculate the top-up amount is as follows:

$17,000 x (120 months - No. of months that has passed at the point of conversion) / 120 months

Conversion of red car plate to normal car plate

This top-up amount will be apportioned to the COE and ARF value which shall be illustrated here with an example.

Car registered on 1 Jun 2005 as an OPC

COE = $11,000
ARF = $20,000

Because the car is registered as an OPC, the $17K rebate is used to offset the COE first, followed by the ARF. Therefore,

COE = $0
ARF = $20,000 - ($17,000 - $11,000) = $14,000

This OPC is now converted to normal car on 20 Jan 2007. The period when the car is registered as an OPC is as follows:

1 Jun 2005 to 31 Dec 2006 = 19 months
1 Jan 2007 to 20 Jan 2007 = 20 days or 0.67 months (i.e. 20 days divided by 30 days)

Hence, the total no. of months which the car was registered as an OPC is 19.67 months. The top-up amount to convert the OPC to normal car is calculated as follows:

$17,000 x (120 months - 19.67 months) / 120 months = $14,213

This top-up amount will be apportioned to the COE and ARF according to the following:

COE = $11,000 / $17,000 x $14,213 = $9,197
ARF = $6,000 / $17,000 x $14,213 = $5,016

Therefore, when the owner de-registers this car, the COE amount will be $9,197 and the ARF amount will be $19,016 (i.e. $14,000 + $5,016).

In summary, this $17K rebate is solely between the car owner and LTA. The bank is not involved here. Accordingly, the existing car loan from the bank remains unchanged. The top-up amount is made payable to LTA and if need be, the car owner will have to take personal loan with the bank to cough out this amount.
  • Email

You may also like

A guide to turbocharged cars
More about car tyres
RUF Automobile returns to Singapore
Road closures for State Funeral Procession
How to clay your car
Supersonic car faces supersonic bullet
Mercedes premieres its new GLE-Class
Tips for buying cars from parallel importers
In with the new and out with the old
Road markings and parking restrictions