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Considering a used car for your next purchase? Here's everything you need to know about the differences between PARF and COE cars.

Category: Car Buying Advice


Preferential Additional Registration Fee (PARF) cars refer to those that are still using their original Certificates of Entitlement (COE), while COE cars refer to those, which have renewed their COE.

PARF cars

In general, all new cars come with an Open Market Value (OMV). This is the original cost of production of the vehicle.

If the vehicle is de-registered within 10 years from its first registration date, the registered owner will be entitled to a Preferential Additional Registration Fee (PARF) rebate. This is normally a percentage of the OMV. Hence the term 'PARF car'.

PARF cars are newer than COE cars, but that does not necessarily mean they are in better condition

COE cars

Should an owner wish to continue using a car after 10 years, he/she will have to renew the COE of the car. The amount paid for the renewal depends on the Prevailing Quota Premium (PQP).

Upon renewal of the COE, you are no longer entitled to the PARF rebate when you de-register the vehicle. Instead, only the COE rebate will be available upon the de-registration. Hence the name 'COE car'.

A well-maintained COE car is a better choice for those on a tight budget, thanks to its more affordable price point

Owning the car

Car cost

With the exclusion of the PARF rebate in the cost, COE cars would be relatively cheaper than a PARF car. Therefore, ideal for car buyers with lower budgets.

Interest rates and road tax will also be costlier for COE cars for reasons alike. These extra costs are points to consider before purchasing a COE car.

It is compulsory for every car in Singapore to be covered by motor insurance by paying a premium on an annual basis.
Insurance premiums will be higher for a COE car because it is prone to breakdowns or accidents due to wear and tear, considering it has a lifespan of 10 years and more. 

You can find out more about insurance schemes here.

Car buyers will have to take into account various factors such as insurance, road tax and other hidden costs before making their purchase

Practicality

With the rapid advancement in technology these days, car designs have been going through massive improvements year after year. From their outlook to engine performance, newer cars make those of yesteryear look and feel obsolete.

However, a well-maintained COE car could still meet the basic needs of a driver with lower demands.

One should also expect problems to surface as their car ages. Wear and tear on the interior, accompanied by engine related issues, increases the number of visits to the car workshop.

Keep in mind that older cars will probably require more regular visits to the workshop due to wear and tear

Comfort levels of a new car is always better right? Well… not so true. A COE car can provide the same level of comfort as a PARF car if it is well-maintained. While on the flip side of the coin, a PARF car can be rather incommodious depending on its previous owner.

Make sure to compare the interior and exterior conditions of the car if you are stuck between a PARF car and a COE car. Always remember that newer does not necessarily mean better, your needs are more important than your wants.


*This article was updated on 21st March 2018.
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