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 it is first imported into Singapore. It's the actual price of your vehicle before all taxes and other surcharges (and there are many) - like COE, GST, registration fee and the dealer's profit margins - 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.
*These ARF rates were last updated on 14 February 2023
- For cars with an OMV of up to $20,000:
ARF = OMV
Your ARF value is 100% of your OMV value.
- For cars with an OMV ranging from $20,001 to $40,000:
ARF = [(OMV - $20,000) x 140%] + $20,000
Your ARF value is 140% of incremental OMV.
- For cars with an OMV from $40,001 to $60,000:
ARF = [(OMV - $40,000) x 190%] + $48,000
The ARF value is 190% of incremental OMV.
- For cars with an OMV from $60,001 to $80,000:
ARF = [(OMV - $60,000) x 250%] + $86,000
The ARF value is 250% of incremental OMV.
- For cars with an OMV above $80,001:
ARF = [(OMV - $80,000) x 320%] + $136,000
The ARF value is 320% of incremental OMV.
Here's an example of a car with an OMV of $100,000 and its payable ARF:
| Vehicle OMV ($100,000) | ARF Rate | ARF Payable |
| First $20,000 | 100% | 100% x $20,000= $20,000 |
| Next $20,000 (i.e. $20,001 to $40,000) | 140% | 140% x $20,000= $28,000 |
| Next $20,000 (i.e. $40,001 to $60,000) | 190% | 190% x $20,000= $38,000 |
| Next $20,000 (i.e. $60,001 to $80,000) | 250% | 250% x $20,000= $50,000 |
| Above $80,000 | 320% | 320% x $20,000= $64,000 |
The total ARF payable in this case, based off the table above, is ($20,000 + $28,000 + $38,000 + $50,000 + $64,000) = $200,000.
So, what is my car's deregistration value?
As mentioned earlier, your vehicle's deregistration value is the sum of a COE rebate and a PARF rebate:
[COE rebate + PARF rebate] = Deregistration value
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, lets us use an example of a car which has a COE that costs $38,000. Let's say this COE expires on 5 June 2020, and you choose to deregister it on 2 May 2012.
Your unused duration of COE is:
From 2 May 2012 to 5 June 2020 to = eight years one month and three days
= 97.1 months
And therefore, your COE Rebate amounts to = ($38,000 x 97.1) / 120 = $30,748.
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 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.
| Age of PARF-eligible vehicle at deregistration | PARF rebate (For cars registered with a COE obtained from May 2002 to 8 February 2023) | PARF rebate (For cars registered with a COE obtained from 22 February 2023 onwards) | PARF Rebate Amount (For cars registered with a COE obtained from 20 February 2026 onwards) |
| Not exceeding 5 years | 75% of ARF paid | 75% of ARF paid or $60,000 (whichever is lower) | 30% of ARF paid or $30,000 (whichever is lower) |
| Above 5 years but not exceeding 6 years | 70% of ARF paid | 70% of ARF paid or $60,000 (whichever is lower) | 25% of ARF paid or $30,000 (whichever is lower) |
| Above 6 years but not exceeding 7 years | 65% of ARF paid | 65% of ARF paid or $60,000 (whichever is lower) | 20% of ARF paid or $30,000 (whichever is lower) |
| Above 7 years but not exceeding 8 years | 60% of ARF paid | 60% of ARF paid or $60,000 (whichever is lower) | 15% of ARF paid or $30,000 (whichever is lower) |
| Above 8 years but not exceeding 9 years | 55% of ARF paid | 55% of ARF paid or $60,000 (whichever is lower) | 10% of ARF paid or $30,000 (whichever is lower) |
| Above 9 years but not exceeding 10 years | 50% of ARF paid | 50% of ARF paid or $60,000 (whichever is lower) | 5% of ARF paid or $30,000 (whichever is lower) |
| More than 10 years | N.A. | N.A. | N.A. |
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.
Your OMV is $100,000. As calculated above, you would have paid a total of $200,000 in ARF.
Therefore, your car's deregistration value, being the sum of the PARF rebate and COE rebate, would technically be ($60,000 + $30,748) = $90,748 .
However, if this example was applied to a car that was registered with a COE obtained during or after the second bidding of February 2026, the PARF rebate would be capped at $30,000. So, keeping all other factors, save the registration and deregistration date in the example above constant, your car's deregistration value will only be $30,000 + $30,748 = $60,748.
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*This article was updated on 23 February 2026
