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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.
|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