By MoneyBees
What LTA pays back if you scrap or export your car now or later: the PARF and COE rebates year by year to 10 years, set against the car's OMV.
It is the money LTA pays back when you deregister the car: the PARF rebate plus the COE rebate. The term is trade slang; LTA calls them PARF and COE rebates.
It is a share of the ARF you paid, set by the car's age on the day you deregister it. For COEs from before the second February 2023 bidding exercise it runs from 75% at up to 5 years to 50% at 9 to 10 years. From the second February 2026 exercise it runs from 30% to 5%, capped at S$30,000.
LTA pays the premium you paid for the 10-year COE x the unused months / 120. It counts full calendar months from the day after deregistration, then the leftover days at 30 days to a month.
Yes for the PARF rebate. The only difference is that exporting within 2 years of registration caps the COE rebate at 80% of the premium paid. Either way you must dispose of the car and give LTA the papers within 1 month of deregistering.
ARF is charged at 100% to 320% of the OMV, depending on the band, so a young car's PARF rebate can be close to the OMV on its own. Add the COE rebate and the total can pass the OMV.
The PARF rate falls by 5 points on the day after each registration anniversary from the 5th. LTA's form D01 says a car registered on 23 Oct 2010 is 5 years old on 22 Oct 2015, so 23 Oct 2015 is the first day of the lower rate. The COE rebate also falls a little every day.
No PARF rebate is paid on a car more than 10 years old. A car on a renewed COE can still get a COE rebate for the unused part of the renewed COE.
They are valid for 12 months from the deregistration date. You can offset them against the registration fee, ARF and COE premium of your next vehicle, or cash them out by PayNow.
The open market value is the price paid to bring the car into Singapore, including purchase price, freight and insurance, as assessed by Singapore Customs. ARF is worked out from it.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).