PARF Value: Parallel Importers VS Authorized Distributors


Owning a car can be very costly, especially when there are so many fees that need to be paid outside of the car. When there’s an opportunity to get rebates, we naturally try to maximize the amount of rebate we can get, which makes us think whether to buy a car from Parallel Importers(PI) or Authorized Distributors(AD).


One such rebate that will affect your new car purchase is the Preferential Additional Registration Fee(PARF) rebate.


What exactly is a PARF rebate?


Upon de-registration of a car, people are eligible for a rebate, in which the value of the rebate depends on the age of the car, is called a PARF rebate. PARF rebates make up half of a car’s de-registration value, which the other half is known as Certificate of Entitlement(COE) rebate.


It is created as Singapore’s way to encourage people from using the same car for 10 years or more, in order to maintain a greener environment and keep carbon dioxide emissions, among other pollutants, low.


How Do I Calculate My PARF Rebate?



PARF rebates depend on two factors, Additional Registration Fee(ARF) paid and the car’s age. To get a clearer idea, you can view the table below:


Age at Deregistration (years)

PARF Rebate 
(for cars registered with COEs obtained from May 2002 tender onwards)

Not exceeding 5

75% of ARF paid

Above 5 but not exceeding 6

70% of ARF paid

Above 6 but not exceeding 7

65% of ARF paid

Above 7 but not exceeding 8

60% of ARF paid

Above 8 but not exceeding 9

55% of ARF paid

Above 9 but not exceeding 10

50% of ARF paid

Above 10


To determine the amount ARF that needs to be paid, you need to find out the car’s Open Market Value(OMV). It gets a bit confusing as there are different tier rates for ARF depending on the car’s OMV, which is calculated in a similar manner as electricity bills. The tiers are as below:


Vehicle OMV

ARF Rate

First SGD 20,000


Next SGD 30,000
(i.e. SGD 20,001 to SGD 50,000)


Above SGD 50,000



To give you a better idea on how ARF is calculated, let’s take a random vehicle with an OMV of SGD 60,000:


Vehicle OMV

ARF Rate

ARF Payable

First S$20,000


100% x SGD 20,000 = SGD 20,000

Next S$30,000


140% x SGD 30,000 = SGD 42,000

Above S$50,000


180% x SGD 10,000 = SGD 18,000


From the data you see on the table, the total ARF that you need to pay for the car with an OMV of SGD60,000 is by adding SGD 20,000, SGD 42,000, and SGD 18,000, which equals to SGD 80,000.


In order to know how much PARF rebate you can get for that car, check how old your car is and take the PARF rebate rate tier for the specific age and multiply it by SGD 80,000. For example, I’m de-registering that car when it’s around 7 to 8 years old, so I multiply the ARF paid, SGD 80,000, by its appropriate rate, 60%, which brings my PARF rebate to SGD 48,000. A lot less confusing now isn’t it?


Why Do PARF Rebates Differ From PI to AD Cars?



Just as we’ve mentioned before, PARF rebates depend on the amount of ARF paid, in which the ARF depends on the car’s OMV. People usually opt for PI cars as they are cheaper compared to AD cars but if you’re looking to save money, it’s not as clear cut as that. PI cars may be cheaper but they also have lower OMV, which will result in lower PARF rebate in the end.


However, that’s not the only factor that determines a car’s PARF rebate. Another factor we have to consider is Carbon Emissions-Based Vehicles Scheme(CEVS), which usually results in a much smaller PARF rebate, which isn’t exactly a bad thing.




Tune in next time when we talk about CEVS in detail, along with loans and COE, all of these which greatly affects your car ownership capabilities.


These aren't the only things that you need to worry about when calculating the costs of owning a car. Check out what types of engine oil you should be using for your car, by clicking here.


Looking for a car to buy? You should check out both the Honda Vezel and Nissan Qashqai, and see which is worth your money by clicking here.

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