What is PARF?
The Preferential Additional Registration Fee (PARF) is a rebate you receive when deregistering a vehicle before its COE expires. It returns a portion of the Additional Registration Fee (ARF) you paid when you first registered the car.
PARF was introduced to encourage vehicle owners to deregister their cars earlier, helping to maintain a younger and cleaner vehicle fleet in Singapore.
How PARF is Calculated
PARF rebates are calculated as a percentage of the ARF paid at registration, decreasing each year. Budget 2026 introduced significant changes to the rebate schedule.
New PARF Rates (February 2026 onwards)
For cars registered with COEs from the second February 2026 bidding exercise:
| Vehicle Age | PARF Rebate | Cap |
|---|---|---|
| Within 5 years | 30% of ARF | $30,000 |
| 6th year | 25% of ARF | $30,000 |
| 7th year | 20% of ARF | $30,000 |
| 8th year | 15% of ARF | $30,000 |
| 9th year | 10% of ARF | $30,000 |
| 10th year | 5% of ARF | $30,000 |
Legacy PARF Rates (pre-February 2026)
For cars with COEs obtained up to the first February 2026 bidding exercise, the original rates still apply. The cap depends on when the COE was obtained: $60,000 for COEs from the second February 2023 exercise onwards, and no cap for COEs obtained before that.
| Vehicle Age | PARF Rebate |
|---|---|
| Within 5 years | 75% of ARF |
| 6th year | 70% of ARF |
| 7th year | 65% of ARF |
| 8th year | 60% of ARF |
| 9th year | 55% of ARF |
| 10th year | 50% of ARF |
After 10 years (when the original COE expires), no PARF rebate is available.
Example: Legacy vs New Rates
For a car with $100,000 ARF deregistered at Year 5:
Legacy (COE from Feb 2023 to Feb 2026): $100,000 × 75% = $75,000 → capped at $60,000
New (Feb 2026+): $100,000 × 30% = $30,000 → $30,000 (within cap)
The new structure significantly reduces PARF benefits, especially for high-ARF vehicles where the cap previously provided substantial rebates.
PARF vs COE Rebate
When deregistering, you may receive two types of rebates:
| Rebate Type | Based On | Condition |
|---|---|---|
| PARF | ARF paid | Only for first COE cycle (10 years) |
| COE Rebate | Remaining COE value | Pro-rated based on months remaining |
Important: If you renew your COE (pay PQP), you lose all PARF eligibility. The car becomes "PARF-ineligible" and will only qualify for COE rebates.
When Should You Deregister?
The financial decision depends on several factors:
Deregister Early (Year 5-7) When:
- Car has high depreciation (luxury/performance vehicles)
- You want to maximise PARF rebate
- Maintenance costs are rising
- You're upgrading to a newer model
Keep Until Year 10 When:
- Car is reliable with low running costs
- COE prices are high (renewal is expensive)
- PARF rebate difference isn't significant
- You're happy with the vehicle
The Break-Even Calculation
To decide, calculate:
- Annual PARF loss: How much PARF you lose each year
- Annual ownership cost: Insurance, road tax, maintenance, parking
- Alternative cost: What would a new/replacement car cost?
If annual PARF loss + ownership costs exceed replacement value, consider deregistering.
The Deregistration Process
- Book appointment via OneMotoring or an authorised scrapyard
- Remove belongings and cancel insurance/road tax
- Surrender vehicle at designated centre
- Receive rebates within 2-4 weeks (PARF + remaining COE)
You can also export the vehicle instead of scrapping, which may yield additional value in certain markets.
PARF for Electric Vehicles
EVs follow the same PARF structure. However, since EVs tend to have higher OMV (and thus higher ARF), the PARF rebates are typically larger in absolute terms.
This is one reason why the total cost of ownership for EVs can be competitive despite higher upfront prices: the higher PARF rebate offsets some depreciation.
Check Your PARF Value
Use our PARF Calculator to estimate your vehicle's current PARF rebate based on registration date and ARF paid. To get LTA's exact figure, or to add the COE rebate on top, see how to check your PARF rebate and deregistration value.
Frequently Asked Questions
Can I get PARF if I renew my COE?
No. Once you renew (pay PQP), the vehicle becomes PARF-ineligible. Only COE rebates apply for renewed vehicles.
Is PARF taxable?
No, PARF rebates are not considered taxable income in Singapore.
How is PARF different from scrap value?
PARF is a government rebate. Scrap value is what scrapyards pay for the vehicle's materials. You receive both when scrapping a PARF-eligible car.