Understanding PARF and COE Rebates
Check the correct PARF cohort, unused COE refund and disposal quote. Worked examples show how these amounts differ and how to avoid counting them twice.
PARF, unused COE and the vehicle’s body value are separate components of a deregistration decision. A trade-in quotation may already include all three. Start by identifying what each number represents before adding them together.
PARF depends on the original COE cohort
Do not apply the latest rates to every car deregistered in 2026. For ordinary cars, the relevant dividing lines are the second February 2023 and second February 2026 COE exercises. Registration-date rules apply separately to COE-exempt cars. Check the vehicle’s actual record and the age band rather than using a calendar-year shortcut.
| Original COE cohort | Up to 5 years | At 10 years | Cap |
|---|---|---|---|
| COE before the second February 2023 exercise | 75% | 50% | No monetary cap in this cohort |
| COE from second February 2023 through first February 2026 exercise | 75% | 50% | S$60,000 |
| COE from the second February 2026 exercise onward | 30% | 5% | S$30,000 |
Intermediate age bands appear in the PARF calculator. Renewed COE cars are not PARF eligible; use the actual ARF paid, not the gross ARF before adjustments.
The calculation uses actual ARF paid after applicable adjustments. A gross ARF example from an import-cost table may therefore be the wrong input. The age-band endpoints also matter: “not exceeding six years” differs from “above six years”. Use LTA’s rebate enquiry for the proposed deregistration date.
A worked old-cohort example
Assume an eligible car in the pre-second-February-2023 cohort, actual ARF paid of $27,000 and deregistration at exactly age six. The 70% band gives $18,900. If its original ordinary COE premium was $50,000 and exactly 48 of 120 months remain, the simplified unused-COE calculation gives $20,000. Combined statutory rebates are $38,900.
A car in the newest cohort with the same actual ARF and age would instead use 25%, giving $6,750 PARF. This is a comparison of two cohorts at the same age, not a claim that a six-year-old car in 2026 loses its older entitlement.
Unused COE is a time-based refund
The original or renewal premium basis and unused months and days determine the COE rebate. Whole-month examples illustrate the arithmetic but are not an exact quotation for a particular date. An original Category E registration can have a different rebate basis: consult the underlying-category comparison in LTA’s rules.
For a ten-year renewal paid at $100,000, exactly three unused years give an illustrative $30,000 rebate. For a five-year renewal paid at $50,000, exactly two unused years give $20,000. Dividing a five-year payment by 120 months would understate the refund. A renewed car can have an unused-COE rebate even though its renewed period has no PARF entitlement.
Separate rebates from a disposal offer
Request a written quote identifying the body/export amount, handling charges, statutory rebates and who receives each payment. If a dealer offers $40,000 for the entire car, adding $38,900 of embedded rebates to that offer may count the same value twice. If an exporter explicitly offers $2,000 for the body alone, that is a different basis.
Likewise, selling a registered car is different from deregistering it. A purchaser may continue using the remaining COE; do not assume every trade-in is immediately scrapped.
Renewal is an opportunity-cost decision
The PARF available if you deregister is value you give up by continuing into a renewed period. Compare renewal and replacement over the same holding period, with separate running costs and end values. Do not compare a hypothetical cheap PQP from another date with today’s new-car quote. Obtain a workshop assessment before assuming an older vehicle can reliably serve the full renewal.
Getting the rebate paid
Rebate entitlement is not the same as automatic bank payment. Complete deregistration and disposal requirements, resolve financing requirements, and use the official rebate service to apply for encashment or another permitted use. LTA states that rebates are valid for 12 months; an encashment application is generally paid within 14 working days. Check the current conditions before relying on a particular payment date.
Use the PARF calculator for a scenario and the official vehicle enquiry for the actual entitlement. Our renewal guide explains the five-year restriction, early renewal timing and refunds.
Sources and review date
Reviewed on 13 September 2026. Historical results retain their exercise dates; worked budgets are assumptions, not quotations.