What is PARF and OMV ?

[Soomp!]

For example,

I am buying a car of $25,800 having the OMV of $5,479.

If i would have scrap the car, does it meant that i can have $5,479 back ?

What is the point of buying a car with or without PARF / OMV ?

All these are so confusing to me..

 

[Soomp!]

I have this.

I attended this training last week, finds it really informative, thus i'm sharing the notes with everyone here. Some of us may have know all these terminologies, but just for leisure readings ya?

What is OMV?
Open market value (OMV) is assessed by the Customs and Excise
Dept taking into account:
a) Purchase price
b) Freight
c) Insurance
d) Handling
e) All other charges incidental to the sale and delivery of the car from
the country of manufacture to Singapore

COE CAR CATEGORIES

Cat A : Cars 1600cc and below and taxis
Cat B : Cars 1601cc and above
Cat C : Goods vehicles and buses
Cat D : Motorcycles
Cat E : Open

Vehicle registration - private car
Registration fee (RF) - S$140
Additional Registration fee (ARF) - 110% of OMV
Certificate of entitlement (COE) - Bid in Cat A,B,E
Customs duty - 20% of OMV

What is PARF?
Preferential Additional Registration fee. This us a benefit or rebate
given for the registration of a new car when an old car (not more
than 10 years old is scrapped)

Features
1. All PARF rebates are valid for 12 months from the date of
deregistration.
2. It can be used to offset the various upfront vehicle fees when you
register a new car. ARF, COE, Quota premium, registration fee.
Any excess not used is forfeited.
3. You can tranfer the PARF rebate to another person if you do not
use it. A S$10 fee is payable for every transfer.

What is COE?
COE stands for Certificate of Entitlement. The vehicle quota system
was implemented on 01 May 1990. LTA determines the number of
new vehicles allowed for registration. The market deletermines the
price of owning a car.

In determining the number of cars allowed for registration, LTA takes
into account the prevailing traffic conditions and the number of cars
taken off the roads permanently.

The quota allocated to each category of vehicle is in proportion to
that category's share of the total vehicle population. The vehicle
quota for a given year is administered through the monthly release of
COEs.

Vehicles exempted from the quota scheme
Scheduled buses, school buses, Emergency vehicles. e.g.
ambulances, fire-engines, engineering plants primarily for off-the-
road use, e.g. tractors, forklifts and trailers, diplomatic vehicles and
vehicles for the disabled.

What is COE?
Prevailing quota premium. PQP is the moving average of the COE in
the last 3 months. To renew your COE for another 10 years, you have
to pay the PQP.

To renew your COE for another 5 years, you have to pay 50% of the
PQP. The 5 year COE is not renewable i.e. you must deregister the
vehicle upon the expiry of 5 years.

What are the benefits of insuring with COE, PARF. OMV?

If you do not wish to buy a new vehicle after a claim. you save
yourself the trouble of having to find a buyer for the rebate. Your
insurer pays you the full value of the rebate and looks fir a buyer. The
sale of COE, PARF rebate is at a discount. THis loss is absorbed by the
insurer.

Should i insure with/without COE,PARF/OMV?
The choice is yours but note that under current LTA regulations, you
will not be given a cash rebate for the remaining value of your COE,
PARF/OMV when you scrap it. Instead the COE, PARF/OMV rebate may
be used to offset when you buy a new car.

However, it must be used within 12 months of the vehicle being
scrapped. ANother way is to sell the rebate to someone else.
The cost of insuring your vehicle is inclusive of COE,PARF/OMV is
typically 5% more than the cost of insuring the vehicle alone. So the
discount is only 5%.

I've finished the notes. hope that its useful to pple who are considering getting a new car. If there's anything incorrect on the info provided, please advise. Thanks & happy reading!

still confusing to me

 

[Soomp!]

my friend are telling me that you will be able to get a certain value after you have scrap a car back..

what is that?.. is that OMV or PARF?

can anyone enlighten?

Thanks..

 

[weng]

when you scrap you get back a certain amount based on paper value according to PARF + COE.

simply speaking, before arriving at PARF, there is ARF which is derived from OMV. there are a few eras with different formula for ARF. do look up in LTA's website. prior to the most recent change, ARF was 110% of OMV. currently ARF is 100% of OMV.

then PARF is a percentage of ARF according to the car age. for 0 to 5yrs, PARF is 75% of ARF. then less 5% every subsequent year until the 10th year becomes 50% of ARF. so if you scrap your car, you'll get back the PARF (x% of ARF) corresponding to the year the car is scrapped.

next is COE rebate. this is a linear pro-rate over 10years. so if you scrap zhun zhun halfway through 10years, you'll get back half the COE amount you've paid.

so paper value wise, you'll minimally get back PARF + COE rebate. on top of that any additional is body value or market conditions liao... demand and supply kind of thing.


for "COE cars", aka >10yr car that has renewed COE, PARF = 0 no matter what your OMV is. you will only be eligible for COE rebate.

 

[Soomp!]

when you scrap you get back a certain amount based on paper value according to PARF + COE.

simply speaking, before arriving at PARF, there is ARF which is derived from OMV. there are a few eras with different formula for ARF. do look up in LTA's website. prior to the most recent change, ARF was 110% of OMV. currently ARF is 100% of OMV.

then PARF is a percentage of ARF according to the car age. for 0 to 5yrs, PARF is 75% of ARF. then less 5% every subsequent year until the 10th year becomes 50% of ARF. so if you scrap your car, you'll get back the PARF (x% of ARF) corresponding to the year the car is scrapped.

next is COE rebate. this is a linear pro-rate over 10years. so if you scrap zhun zhun halfway through 10years, you'll get back half the COE amount you've paid.

so paper value wise, you'll minimally get back PARF + COE rebate. on top of that any additional is body value or market conditions liao... demand and supply kind of thing.


for "COE cars", aka >10yr car that has renewed COE, PARF = 0 no matter what your OMV is. you will only be eligible for COE rebate.

Does every car has PARF and COE value ?

Take for example, this car - Used Perodua Kenari Car for Sale in Singapore, - sgCarMart

once 10 years is reach , what is the value i can take back ?...

sorry i am very new to this..

 

[something]

OPC, after 10years, get nothing(no PARF+COE), am i right?


thanks

 

[tazzi80]

OPC, after 10years, get nothing(no PARF+COE), am i right?


thanks

Based on my understanding it depends on your COE whether its more or less than $17k. If more than $17k i think the PARF will remain. The $17k rebate will offset the COE first then the ARF. So if scrap OPC (where initial COE is 17k or more) on the 10th year, it would be the same as all other cars since COE for all cars are 0 value.

 

[runeruin]

I thought now scrap is get back 55%omv?

 

[Soomp!]

I thought now scrap is get back 55%omv?

depends on when the car is first registered, if it is after Feb 2008, the scrap is 50% of OMV...

 

[ZhuTou!]

Less than 10 yrs car = parf
More than 10 yrs = kosong

 

[lattesurf]

That Kenari registered in 2007, COE should be around $15-20k range. My Sept 07 COE was $17.9k. Best is check with the license plate number on onemotoring for the actual COE paid.

Any COE less than $17k upon registration for OPC, will eat into the ARF amount. As a result, your PARF (%$ of ARF) will likewise be lower.

Many dealers like to advert OPCs with original COE value of eg $15k, $17k etc, even though it is technically $0 due to the rebate. Just so that the "paper value" looks nicer and more attractive.

Likely in this Kenari case, 10th year scrap should get back 55% of OMV, or 50% of ARF, which works out to around $2.9k. Provided the COE upon registration is really $17k.

 

[wypken]

I have this.

I attended this training last week, finds it really informative, thus i'm sharing the notes with everyone here. Some of us may have know all these terminologies, but just for leisure readings ya?

What is OMV?
Open market value (OMV) is assessed by the Customs and Excise
Dept taking into account:
a) Purchase price
b) Freight
c) Insurance
d) Handling
e) All other charges incidental to the sale and delivery of the car from
the country of manufacture to Singapore

COE CAR CATEGORIES

Cat A : Cars 1600cc and below and taxis
Cat B : Cars 1601cc and above
Cat C : Goods vehicles and buses
Cat D : Motorcycles
Cat E : Open

Vehicle registration - private car
Registration fee (RF) - S$140
Additional Registration fee (ARF) - 110% of OMV
Certificate of entitlement (COE) - Bid in Cat A,B,E
Customs duty - 20% of OMV

What is PARF?
Preferential Additional Registration fee. This us a benefit or rebate
given for the registration of a new car when an old car (not more
than 10 years old is scrapped)

Features
1. All PARF rebates are valid for 12 months from the date of
deregistration.
2. It can be used to offset the various upfront vehicle fees when you
register a new car. ARF, COE, Quota premium, registration fee.
Any excess not used is forfeited.
3. You can tranfer the PARF rebate to another person if you do not
use it. A S$10 fee is payable for every transfer.

What is COE?
COE stands for Certificate of Entitlement. The vehicle quota system
was implemented on 01 May 1990. LTA determines the number of
new vehicles allowed for registration. The market deletermines the
price of owning a car.

In determining the number of cars allowed for registration, LTA takes
into account the prevailing traffic conditions and the number of cars
taken off the roads permanently.

The quota allocated to each category of vehicle is in proportion to
that category's share of the total vehicle population. The vehicle
quota for a given year is administered through the monthly release of
COEs.

Vehicles exempted from the quota scheme
Scheduled buses, school buses, Emergency vehicles. e.g.
ambulances, fire-engines, engineering plants primarily for off-the-
road use, e.g. tractors, forklifts and trailers, diplomatic vehicles and
vehicles for the disabled.

What is COE?
Prevailing quota premium. PQP is the moving average of the COE in
the last 3 months. To renew your COE for another 10 years, you have
to pay the PQP.

To renew your COE for another 5 years, you have to pay 50% of the
PQP. The 5 year COE is not renewable i.e. you must deregister the
vehicle upon the expiry of 5 years.

What are the benefits of insuring with COE, PARF. OMV?

If you do not wish to buy a new vehicle after a claim. you save
yourself the trouble of having to find a buyer for the rebate. Your
insurer pays you the full value of the rebate and looks fir a buyer. The
sale of COE, PARF rebate is at a discount. THis loss is absorbed by the
insurer.

Should i insure with/without COE,PARF/OMV?
The choice is yours but note that under current LTA regulations, you
will not be given a cash rebate for the remaining value of your COE,
PARF/OMV when you scrap it. Instead the COE, PARF/OMV rebate may
be used to offset when you buy a new car.

However, it must be used within 12 months of the vehicle being
scrapped. ANother way is to sell the rebate to someone else.
The cost of insuring your vehicle is inclusive of COE,PARF/OMV is
typically 5% more than the cost of insuring the vehicle alone. So the
discount is only 5%.

I've finished the notes. hope that its useful to pple who are considering getting a new car. If there's anything incorrect on the info provided, please advise. Thanks & happy reading!

still confusing to me

I thought LTA allows encash of COE/PARF Rebate. they changed the rule from 2008 onwards, for the convenience of people who want to switch back to public transport.

 

[Cyberbaby]

I thought LTA allows encash of COE/PARF Rebate. they changed the rule from 2008 onwards, for the convenience of people who want to switch back to public transport.

Yep, but unable to get 100% for cash rebate.

 

[wypken]

Yep, but unable to get 100% for cash rebate.

What is the typical percentage?

 

[escksu]

COE and PARF are basically money sucking tools from PAP regime,......

 

[Cyberbaby]

What is the typical percentage?

Well, it depends, not fix percentage. Average 80% to 90%.

 

[THEMIKOS]

Good day everyone. Seems like this topic hasn't been touched in ages.
Anyways the ARF is now 140% of OMV right? Been doing some reading recently and i am confused by what differing views people have. Is PARF = 75-50 % of ARF (depending on year deregistered)
OR
PARF = 75-50% of OMV (depending on year deregistered)

Another question would be why is the talk that when u take a new car out, the car cepfeciates 30% immediately? I know this is not related to the topic and so if no one answers its ok.
But please, is PARF dependant on ARF or OMV?

Thank you.

 

[trento]

All along is 50% Omv right?

30% is a guide, probably on extreme side. I think 20% is more accurate. U can always see sgcarmart

Good day everyone. Seems like this topic hasn't been touched in ages.
Anyways the ARF is now 140% of OMV right? Been doing some reading recently and i am confused by what differing views people have. Is PARF = 75-50 % of ARF (depending on year deregistered)
OR
PARF = 75-50% of OMV (depending on year deregistered)

Another question would be why is the talk that when u take a new car out, the car cepfeciates 30% immediately? I know this is not related to the topic and so if no one answers its ok.
But please, is PARF dependant on ARF or OMV?

Thank you.

 

[Sammiegirl00]

If you need a ride, you jolly well just go and get em. Let’s keep it simple and fuss free.

 

[THEMIKOS]

If you need a ride, you jolly well just go and get em. Let’s keep it simple and fuss free.

Haha sammiegirl00, i agree with u. But its better to make informed decisions rather than to blindly buy stuff. Its akin to how people think buying houses with cpf is profitable until they realise their property doesnt appreciate that much enough to cover the accrued interest to be returned to CPF and so they are stuck with a property they no longer want but they cant sell due to it being a negative sale. Nevertheless thabks for ur advise.