PARF Rebate Explained: What You Get Back When You Deregister
When you deregister a car in Singapore, you may get money back. Two refunds can apply: the PARF rebate and the COE rebate. They’re often confused, so here’s how each one works.
What Is the PARF Rebate?
PARF stands for Preferential Additional Registration Fee. The PARF rebate is a partial refund of the ARF you paid when the car was registered.
The key conditions:
- It applies when a car is deregistered no more than 10 years after registration.
- It is a percentage of the ARF (not the OMV), and the percentage falls as the car ages.
- Which percentages apply depends on when the car’s COE was obtained — the schedule was cut sharply in 2026.
Because ARF is tiered on OMV, a more expensive car pays a much larger ARF and so carries a larger rebate, up to the cap.
The PARF Schedules
| Age at deregistration | COE obtained before Feb 2026 | COE from the 2nd bidding of Feb 2026 |
|---|---|---|
| Up to 5 years | 75% of ARF | 30% of ARF |
| 5–6 years | 70% | 25% |
| 6–7 years | 65% | 20% |
| 7–8 years | 60% | 15% |
| 8–9 years | 55% | 10% |
| 9–10 years | 50% | 5% |
| Over 10 years | Nil | Nil |
| Cap | $60,000 for COEs from the 2nd bidding of Feb 2023; none before | $30,000 |
The 2026 revision was announced by the LTA in February 2026. Cars already on the road keep the schedule they were registered under — the change only affects cars with newer COEs. For those, the PARF rebate is now a small part of the car’s value, which raises their depreciation per year.
The Crucial Catch: The 10-Year Cliff
The PARF rebate stops once a car is more than 10 years old. Deregistering when a 10-year COE expires still earns the last tier; renewing the COE and running past 10 years forfeits it for good. This is the single biggest factor in the renew-versus-scrap decision.
PARF Rebate vs COE Rebate
| PARF Rebate | COE Rebate | |
|---|---|---|
| What it refunds | Part of the ARF | The unused portion of your COE |
| When it applies | Deregister within 10 years | Deregister with COE time remaining |
| At 10-year expiry | Last tier (50% or 5% of ARF) | Zero (no COE time left) |
If you deregister, say, two years early, you could receive both a PARF rebate and a COE rebate for the remaining ~2 years of COE value.
Why This Shapes the Used-Car Market
The PARF rebate is essentially the car’s “scrap value floor.” It’s why dealers quote a car’s worth partly in terms of its rebate, and why some owners sell before the 10-year cliff rather than renew. With the 2026 schedule that floor is much lower for newer cars. It also feeds into how new and used cars are valued.
The Bottom Line
If your car is approaching 10 years, work out its PARF rebate before deciding to renew — because renewing forfeits it. Our PARF & COE rebate calculator estimates both in seconds. Knowing your numbers, alongside the current COE prices, makes the decision much clearer.
Our free app helps you watch the COE side of the equation with live prices and trend history.
This article is for general information only and is not financial advice. For the exact PARF rebate rules and rates, refer to the LTA.
Related reading: COE Renewal vs Scrapping · What Is OMV?
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