Selling a Car in Singapore: How to Get Back Expenses
Will the system be kind to you?
- Being honest is essential when determining the reason you wish to drive. We often want to own a car for social status purposes, as a symbol of wealth, and be fully aware that it may not yet be necessary.
- Owners may be eligible for the Preferential Additional Registration Fee (PARF) rebate system if all three conditions are met.
- If you are thinking of selling your current car, you’ll want to know its deregistration value, which is the sum of the PARF rebate and COE rebate.
What is involved in selling a car?
Owners may be eligible for the Preferential Additional Registration Fee (PARF) rebate system if all the three conditions below are met:
- The car is deregistered before it is 10 years old
- The car was a new car at the time of registration in Singapore, or an imported used car registered in Singapore on or after 1st September 2007
- The car must not have been laid up before
Calculating the deregistration value:
Deregistration value = the sum of the PARF rebate and COE rebate
The deregistration value of a car can also be known as the paper value!
Let’s run through an example:
1. PARF Rebate
- Car age at deregistration = above 7 but not more than 8
- OMV = $18,500
- For the first $20,000 of OMV, the ARF rate is 100%
- The OMV is less than $20,000, therefore, OMV = ARF = $18,500
- Car is 7 years old, meaning that the PARF rebate is 60% of the ARF
PARF rebate = $18,500 x 0.6 = $11,100
2. COE Rebate
COE Rebate = (Quota Premium of 10 year COE paid X number of months left)/120 months
Example: You own a vehicle, the details are as follows:
Total unused period = period from 3rd Jan 2022 to 5th June 2025 = 41.1 months
COE rebate = $61,000 X 41.1 months/120 months
COE rebate = $20,892.50
= sum of the PARF rebate and COE rebate
= $11,100 + $20,892.50 = $31,992.50
Not to be confused with deregistration value!
Scrap value = Deregistration value + body value
Your deregistered value is paid by the LTA, whereas the body value is the amount that a dealer is willing and able to pay for your car!
SELLING A CAR. COMPLETED. ✅