If you’re thinking of buying a car in Singapore, you may have come across the term “PARF car.” But what exactly is a PARF car, and how does it differ from other cars on the market? In this article, we’ll take a closer look at PARF cars in Singapore and explore the benefits and drawbacks of owning one.
A PARF car is a type of vehicle that is eligible for a Preferential Additional Registration Fee (PARF) rebate when it is deregistered. To qualify for this rebate, the car must be less than 10 years old and must not have been converted to run on an alternative fuel source. The PARF rebate is calculated based on the Open Market Value (OMV) of the car at the time of its registration, and it can be a significant amount of money.
While a PARF car may offer some financial benefits, there are also some downsides to owning one. For example, PARF cars tend to be more expensive to purchase than their COE counterparts, and they may also have higher monthly repayments and insurance premiums. Additionally, if you plan to keep your car for more than 10 years, you may not be able to take advantage of the PARF rebate when you eventually deregister it.
Key Takeaways
- PARF cars are eligible for a Preferential Additional Registration Fee rebate when deregistered, but they must be less than 10 years old and not converted to run on an alternative fuel source.
- While PARF cars can offer financial benefits, they tend to be more expensive to purchase and may have higher monthly repayments and insurance premiums.
- If you plan to keep your car for more than 10 years, you may not be able to take advantage of the PARF rebate when you eventually deregister it.
Understanding PARF Cars in Singapore
If you’re looking to buy a car in Singapore, you may have heard of the term “PARF car.” A PARF car refers to a vehicle that is eligible for a Preferential Additional Registration Fee (PARF) rebate upon deregistration. In this section, we’ll explain what a PARF car is, who is eligible for the PARF rebate, and how the PARF value is calculated.
Eligibility for PARF Rebate
To be eligible for the PARF rebate, the vehicle must meet the following criteria:
- It must be a car or taxi.
- It must be deregistered before the end of its COE.
- It must not have been deregistered before the halfway mark of its COE.
- It must be less than 10 years old at the time of deregistration.
- It must have an Open Market Value (OMV) of $20,000 or more.
Calculation of PARF Value
The PARF rebate is calculated based on a percentage of the vehicle’s ARF value, which is determined by its OMV. The ARF value is the Additional Registration Fee (ARF) paid by the vehicle owner at the time of registration. The PARF rebate percentage is based on the age of the vehicle at the time of deregistration. Here’s how the PARF rebate is calculated:
PARF rebate = ARF x percentage based on age of vehicle
The percentage based on the age of the vehicle is as follows:
- For vehicles less than 5 years old: 75% of ARF
- For vehicles between 5 and 6 years old: 70% of ARF
- For vehicles between 6 and 7 years old: 65% of ARF
- For vehicles between 7 and 8 years old: 60% of ARF
- For vehicles between 8 and 9 years old: 55% of ARF
- For vehicles between 9 and 10 years old: 50% of ARF
It’s important to note that the PARF rebate is only applicable to the first 10 years of a vehicle’s COE. After that, the vehicle is no longer eligible for the PARF rebate.
In conclusion, if you’re planning to buy a car in Singapore, it’s important to understand what a PARF car is and how the PARF rebate works. By purchasing a PARF car, you can potentially save money on your vehicle’s registration fees.
Financial Aspects of Owning a PARF Car
If you’re considering purchasing a car in Singapore, it’s important to understand the financial aspects of owning a PARF car. PARF stands for Preferential Additional Registration Fee, which is a rebate given to car owners when they deregister their vehicles before the end of their 10-year lifespan. Here are some key financial factors to consider when owning a PARF car:
Additional Registration Fee (ARF)
The Additional Registration Fee (ARF) is a tax imposed on the Open Market Value (OMV) of a vehicle. The OMV is the price paid or payable for the vehicle when it is first registered in Singapore. The ARF is calculated based on a percentage of the OMV, and it varies depending on the age of the vehicle at the time of registration. For PARF cars, the ARF is refunded upon deregistration, subject to certain conditions.
Open Market Value (OMV)
The Open Market Value (OMV) of a vehicle is the price paid or payable for the vehicle when it is first registered in Singapore. The OMV includes the purchase price, freight, insurance, and any other charges incidental to the sale and delivery of the vehicle to Singapore. The ARF is calculated based on a percentage of the OMV, and it varies depending on the age of the vehicle at the time of registration.
Certificate of Entitlement (COE) and COE Rebate
The Certificate of Entitlement (COE) is a license that allows the owner of a vehicle to use it on the roads in Singapore for a period of 10 years. The COE is obtained through a bidding system, and the price can vary depending on market conditions. When a PARF car is deregistered before the end of its 10-year lifespan, the owner is entitled to a COE rebate, which is a percentage of the COE price paid when the vehicle was first registered.
Overall, owning a PARF car in Singapore can be a good financial decision, as you can benefit from the PARF rebate upon deregistration. However, it’s important to consider the ARF, OMV, and COE when budgeting for your purchase. Make sure to do your research and compare prices before making a decision.
De-registration and Exporting PARF Cars
If you’re planning to deregister and export your PARF car in Singapore, you’ll need to follow certain procedures to ensure that you receive your rebates and comply with relevant regulations.
Deregistration Process
To deregister your PARF car, you’ll need to submit a request to the Land Transport Authority (LTA). The LTA will then calculate the deregistration value of your car, which is the sum of your COE rebate and your PARF rebate.
The COE rebate is the amount you receive for the unused portion of your Certificate of Entitlement (COE), while the PARF rebate is the amount you receive for the unused portion of your Preferential Additional Registration Fee (PARF).
It’s important to note that only PARF cars are entitled to both PARF and COE rebates. COE cars, which have renewed their COE, are only entitled to COE rebates.
Export Procedures and Rebates
Once your car has been deregistered, you can proceed with exporting it. You’ll need to follow the relevant procedures and regulations set by Singapore Customs, such as obtaining an export permit and submitting the necessary documents.
When exporting your PARF car, you may be eligible for rebates on the prevailing quota premium (PQP) and offset fees. PQP is the amount you pay to renew your COE, while offset fees are the fees you pay to transfer your car ownership.
The amount of rebate you receive will depend on various factors, such as the age of your car and the date of its registration. You can check with the LTA or a reputable car exporter for more information on the specific rebates you’re entitled to.
Overall, deregistering and exporting your PARF car can be a complex process, but it can also be financially rewarding. With the right knowledge and guidance, you can ensure that you receive the maximum rebates and comply with all relevant regulations.
Insurance and Road Tax for PARF Cars
If you own a PARF car in Singapore, you will be required to pay both insurance premiums and road tax. In this section, we will discuss the details of these requirements.
Insurance Premiums
When it comes to insuring your PARF car, you can expect to pay a higher premium than you would for a COE car. This is because PARF cars tend to be newer and more expensive, which means that they are more costly to repair or replace in the event of an accident.
To ensure that you are getting the best deal on your insurance premium, it is recommended that you shop around and compare quotes from different insurance providers. You should also consider factors such as the level of coverage you require, your driving history, and the make and model of your vehicle.
Road Tax Details
In addition to insurance premiums, you will also need to pay road tax for your PARF car. The amount of road tax you are required to pay will depend on the engine capacity of your vehicle, as well as its carbon emissions.
To give you an idea of the costs involved, we have provided a table below outlining the road tax rates for PARF cars in Singapore:
| Engine Capacity (cc) | Carbon Emissions (g/km) | Road Tax Rate |
|---|---|---|
| Up to 1,000 | Up to 95 | $400 |
| 1,001 – 1,600 | Up to 155 | $620 |
| 1,601 – 2,000 | Up to 185 | $870 |
| 2,001 – 3,000 | Up to 210 | $1,210 |
| Above 3,000 | Above 210 | $2,400 |
It is important to note that these rates are subject to change, so you should always check with the Land Transport Authority (LTA) for the latest information.
In summary, if you own a PARF car in Singapore, you will need to pay both insurance premiums and road tax. While these costs may be higher than those associated with a COE car, it is important to ensure that you are adequately covered in the event of an accident. By shopping around for the best deals and staying up to date with the latest road tax rates, you can ensure that you are getting the most value for your money.
Market Factors Influencing PARF Cars
If you’re considering buying a used car in Singapore, you may be wondering whether to get a COE or a PARF car. PARF cars can be more expensive than COE cars, but they also come with significant advantages, including a higher resale value and a larger rebate upon deregistration. Here are some market factors that can influence the value of PARF cars:
Resale Value and Depreciation
One of the biggest factors that can affect the value of a PARF car is its resale value. PARF cars are generally more expensive than COE cars, but they also tend to hold their value better over time. This is because PARF cars are typically newer and have lower mileage than COE cars, which can make them more attractive to buyers. Additionally, PARF cars tend to have a longer warranty period than COE cars, which can also increase their resale value.
Another factor that can influence the value of a PARF car is its depreciation rate. Like all cars, PARF cars lose value over time, but they tend to depreciate more slowly than COE cars. This is because PARF cars are typically newer and have lower mileage than COE cars, which can make them more attractive to buyers. Additionally, PARF cars tend to have a longer warranty period than COE cars, which can also slow their depreciation rate.
Impact of Vehicle Age on PARF Rebate
The age of a PARF car at deregistration can also have a significant impact on its value. PARF cars that are less than 5 years old at deregistration are eligible for a PARF rebate, which can be quite substantial. The PARF rebate is calculated based on the Open Market Value (OMV) of the car at the time of its registration, and can range from 50% to 75% of the OMV, depending on the age of the car.
PARF cars that are more than 10 years old at deregistration are not eligible for a PARF rebate, but they may still be eligible for a COE rebate. The COE rebate is calculated based on the unused portion of the car’s COE, and can be quite substantial for older cars. However, the value of the COE rebate tends to decrease over time, so it may not be as attractive for older cars as it is for newer ones.
In conclusion, when buying a used car in Singapore, it’s important to consider the market factors that can influence the value of PARF cars. Resale value, depreciation rate, and the age of the car at deregistration can all have a significant impact on the value of a PARF car. By taking these factors into account, you can make an informed decision about whether a PARF car is the right choice for you.
Frequently Asked Questions
How can one calculate the PARF rebate in Singapore?
Calculating the Preferential Additional Registration Fee (PARF) rebate for your car is easy. The rebate is calculated as a percentage of the Additional Registration Fee (ARF) paid when the vehicle was first registered. To calculate the PARF rebate, simply subtract the Prevailing Quota Premium (PQP) from the ARF, and then multiply the result by the rebate percentage. The rebate percentage depends on the age of the vehicle at the time of deregistration.
What does PARF stand for in the context of Singaporean vehicles?
PARF stands for Preferential Additional Registration Fee. It is a rebate that is given to car owners in Singapore when they deregister their cars before the end of their Certificate of Entitlement (COE) period. The rebate is a percentage of the ARF paid when the car was first registered.
Are there specific eligibility criteria for PARF benefits in Singapore?
Yes, there are specific eligibility criteria for PARF benefits in Singapore. To be eligible for PARF, the car must be less than 10 years old at the time of deregistration. The car must also not have been used as a taxi or a rental car. In addition, the car must have a valid COE at the time of registration.
What’s the maximum rebate one can receive from a PARF car in Singapore?
The maximum rebate one can receive from a PARF car in Singapore is 50% of the ARF paid, up to a maximum of $30,000. The rebate amount depends on the age of the vehicle at the time of deregistration.
How does a PARF car differ from a COE car in Singapore?
A PARF car is a vehicle that is less than 10 years old and has not been used as a taxi or a rental car. It is eligible for a PARF rebate if it is deregistered before the end of its COE period. A COE car, on the other hand, is a vehicle that has a valid COE and is eligible for a COE rebate if it is deregistered before the end of its COE period. The rebate amount for a COE car depends on the remaining COE period at the time of deregistration.
Is the Additional Registration Fee (ARF) identical to the Certificate of Entitlement (COE)?
No, the Additional Registration Fee (ARF) is not identical to the Certificate of Entitlement (COE). The ARF is a tax that is imposed on the registration of a new car, while the COE is a permit that allows the car to be used on Singapore’s roads for a specified period of time. The ARF is calculated based on the Open Market Value (OMV) of the car, while the COE is determined by the bidding process.