Preferential Additional Registration Fee Singapore —
Unlock Savings: Mastering the PARF Scheme for Car Owners
What is PARF?
PARF meaning, Preferential Additional Registration Fee, is a component of the total cost of owning a vehicle in Singapore. It is a rebate given to vehicle owners when they deregister their vehicles before the end of their 10-year COE (Certificate of Entitlement) lifespan. The PARF rebate is intended to incentivize vehicle owners to replace their older vehicles with newer, more environmentally friendly models.
Key Differences Between COE vs PARF
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COE is a quota license that grants the holder the right to own and use a vehicle in Singapore for a period of 10 years.
It is obtained through a bidding process and must be renewed at the end of its lifespan to continue using the vehicle.
The cost of COE is determined by supply and demand dynamics in the open bidding system.
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PARF is a rebate given to vehicle owners when they deregister their vehicles before the end of their 10-year COE lifespan.
The amount of PARF rebate depends on factors such as the age of the vehicle and its Open Market Value (OMV) at the time of registration.
PARF rebates are designed to encourage the early replacement of older vehicles with newer, more fuel-efficient models.
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Long-Term Ownership: If you plan to keep your vehicle beyond its 10-year COE lifespan and intend to renew the COE for continued use, choosing COE may be more suitable. This option allows you to retain ownership of the vehicle without the need to deregister and forfeit the PARF rebate.
Budget Considerations: Renewing the COE typically involves a significant financial commitment, as you'll need to pay the prevailing COE premium at the time of renewal. Before opting for COE renewal, ensure that you have the financial resources to cover the renewal costs.
Attachment to the Vehicle: If you have a strong emotional attachment to your vehicle or if it holds sentimental value, renewing the COE may be preferable as it allows you to continue using the same vehicle for an extended period.
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Upgrading to a New Vehicle: If you're considering upgrading to a newer vehicle or if your current vehicle is nearing the end of its lifespan, choosing PARF may be more beneficial. Deregistering your vehicle before the COE expires allows you to receive a PARF rebate, which can be used to offset the cost of purchasing a new vehicle.
Financial Flexibility: Opting for PARF provides you with financial flexibility, as you can use the PARF rebate towards the down payment or financing of a new vehicle. This option allows you to enjoy the benefits of driving a newer model without the need for a large upfront investment.
Environmental Considerations: If you're conscious about environmental impact and fuel efficiency, choosing PARF allows you to replace your older vehicle with a newer, more environmentally friendly model. Newer vehicles often come equipped with advanced technology and features that contribute to reduced emissions and improved fuel efficiency.
FAQs
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PARF is calculated based on a percentage of the Additional Registration Fee (ARF) paid at the time of vehicle registration, minus a depreciation rate for each year of ownership up to the 10th year.
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No, PARF rebates are only applicable if you deregister your vehicle before the end of its 10-year COE lifespan. If you deregister your vehicle after the COE expires, you will not be eligible for a PARF rebate.
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The PARF rebate can be used to offset the cost of purchasing a new vehicle, renewing the COE of an existing vehicle, or refunded in cash.
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To be eligible for the PARF rebate, the vehicle must be deregistered before the end of its 10-year COE lifespan, and all outstanding loans, taxes, and fees related to the vehicle must be settled.
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To maximize your PARF rebate, consider deregistering your vehicle before the end of its COE lifespan and purchasing a new vehicle with a higher OMV, as this will result in a larger rebate amount.