Understanding OMV, PARF and COE rebates for your car
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Understanding OMV, PARF and COE rebates for your car

A complete guide to OMV and ARF for vehicles in Singapore, and how to calculate PARF & COE rebates to find your car's deregistration value (aka paper value)

Category: Car Ownership Advice


Yes, you’ve heard it right. You can get money from deregistering your car. This is the Land Transport Authority’s (LTA) way of thanking you for decluttering the roads and reducing congestion. So, what is your car’s deregistration value and how can you deregister your car? Read on to find out how you can check your car’s deregistration value!

The deregistration value of your car is the sum of your Certificate of Entitlement (COE) rebate and the Preferential Additional Registration Fee (PARF) rebate. However, to calculate your PARF, you’ll first need to know your vehicle’s Open Market Value (OMV).
 
 
What is OMV?

The OMV of your vehicle is the price payable when its first imported into Singapore. It’s the actual price of your vehicle before all taxes and other surcharges like COE, GST, registration fee and dealer’s profit are added in. The OMV is inclusive of purchase price, insurance, freight and delivery of your car to the country.
 
 
What is ARF?

The Additional Registration Fees (ARF) is a tax imposed upon the registration of your vehicle. The OMV of your vehicle is used to calculate the ARF, which is used to determine the PARF rebate later on.
  • For cars with an OMV of up to $20,000:
    ARF = OMV
    Your ARF value is 100 percent of your OMV value.
  • For cars with an OMV ranging from $20,001 to $50,000:
    ARF = [(OMV - $20,000) x 140%] + $20,000
    Your ARF value is 140 percent of incremental OMV.
  • For cars with an OMV above $50,000:
    ARF = [(OMV - $50,000) x 180%] + $62,000
    The ARF value is 180 percent of incremental OMV.
Here’s an example of a car with an OMV of $75,000 and its payable ARF: 

Vehicle OMV ($75,000) ARF Rate ARF Payable
First $20,000 100% 100% x $20,000= $20,000
Next $30,000 140% 140% x $30,000= $42,000
Above $50,000 180% 180% x $25,000= $45,000
 
The total ARF payable is this case, based off the table above, is ($20,000 + $42,000 + $45,000) = $107,000. 
 
 
So, what is my car’s deregistration value?

As mentioned earlier, your vehicle’s deregistration value is the sum of COE rebate and PARF rebate:

[COE rebate + PARF rebate] = Deregistration value
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What is my COE rebate? How do I calculate my COE rebate?

When you deregister your car before your COE expires in its 10th year, you’ll receive a rebate from LTA for the remaining COE left on your car. This amount is based off the Quota Premium (QP) that you’d last paid.   

Your COE rebate is: 

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

So, for instance, your COE costs $38,000 and it expires on 5th June 2020. You choose to deregister it on 2nd January 2018.

Your unused duration of COE is:

From 3rd January 2018 to 5th June 2020 = 2 years, 5 months and 3 days
= 29.1 months

And therefore, your COE Rebate amounts to = ($38,000 x 29.1) / 120 = $9,215.
 
 
But how do I calculate my PARF rebate?

You’re entitled to a PARF rebate when you deregister a car that’s less than 10 years old. This rebate allows you to recover the ARF paid when you’d first registered your car. Simply put, your PARF rebate depends on the age of your vehicle and its ARF value.

The PARF rebate is based off a percentage of your ARF value, which is based on your vehicle’s OMV.
Here’s how you calculate your PARF rebate:

PARF rebate = ARF x % based on the age of your car

Age of vehicle at deregistration PARF rebate (COE May 2002 onwards)
Not exceeding 5 years 75% of ARF paid
Above 5 years but not exceeding 6 years 70% of ARF paid
Above 6 years but not exceeding 7 years 65% of ARF paid
Above 7 years but not exceeding 8 years 60% of ARF paid
Above 8 years but not exceeding 9 years 55% of ARF paid
Above 9 years but not exceeding 10 years 50% of ARF paid
Above 10 years NA
 
However, not all cars are entitled to a PARF rebate. Cars entitled to PARF rebates are the ones deregistered within 10 years upon its first registration. These cars are known as “PARF cars”.

If your COE is a renewed one, you won’t be entitled to the PARF rebate when you deregister your vehicle. Your car then becomes known as the “COE car”. Find out what’s the difference between PARF cars and COE cars.
 

Let's use a Toyota Altis and calculate its deregistration value

Using the Toyota Altis as an example, calculating your deregistration value becomes so much simpler
Suppose your Altis has 8 years more to go.

Your OMV is $19,741. Since the OMV is less than $20,000, the ARF = OMV = $19,741. 
 
Your vehicle is less than 5 years old. Based off the table above, your PARF rebate is 75 percent of ARF, which is $14,805. 
 
Your remaining COE has 8 years and 15 days left. As your COE costs $36,810, the COE rebate will be $29,602. 
 
Therefore, your car’s deregistration value, being the sum of PARF rebate and COE rebate, is estimated to be $44,407. 
 

Confusing terms to take note of
 
Paper value

The paper value of your car is also known as its deregistration value. So, if someone enquires about the paper value, don’t panic. They’re just asking for its deregistration value. 
 
Scrap value

Scrap value, on the other hand, is the sum of your car’s deregistration value plus your car’s body value. As noted previously, the deregistration value is the sum paid by LTA. The body value, though, is the amount your dealer is willing to pay to take the car off your hands.
  
[Deregistration value + Body value] = Scrap value
  
See, finding out your car’s deregistration value isn’t as hard as it seems. It's useful to find out how much money you’ll get back upon deregistering your car.
 

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Or perhaps you would like to renew your COE and drive your car for another 5 to 10 years? sgCarMart can help you secure a COE loan and renew your COE! 

*This article was updated by Alexandra Cheung on 11 June 2020

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paper value  singapore paper value  paper value singapore  what is paper value  coe  coe rebate  omv rebate  omv