Enquiry on Parf

[Mr Lim888]

Hi to all,
I will be getting a second hand car soon but need help from those who may know my doubt.

If the seller had obtained the balloon scheme for the car previously, will I able to get 55% of the parf of the car if I deregistered it just before 10 years? As far as I know the parf had been used to off-set his loan for the car.

How would I know if the car is zero parf at the end of 10 years? thx

 

[kebinu]

That should be the seller's problem when he redeems the loan. You are just buying as per normal.

If the car is newer than certain month 2007, the parf rebate is 50%.

Anyone please correct me if i'm wrong.

come to think of it, it's a good time to use balloon scheme for certain cars now. hehe

 

[Mr Lim888]

Thanks!
That's mean I will be able to get 50% of the parf value when I de-registered before coe expired regardless if the previous owner obtained balloon scheme for the car or not, right?

Seller need to settle the loan from the bank before he is able to sell his car to me, so he will need to pay off the parf he got initially for the balloon scheme.

 

[jinmuddy]

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[ninpeh]

Thanks!
That's mean I will be able to get 50% of the parf value when I de-registered before coe expired regardless if the previous owner obtained balloon scheme for the car or not, right?

Seller need to settle the loan from the bank before he is able to sell his car to me, so he will need to pay off the parf he got initially for the balloon scheme.

u should refer to the log details for the minimum PARF rebate.

use 50% as a reference but at times it may be less, depending on the car history (e.g. OPC convert to normal)

 

[pew]

(e.g. OPC convert to normal)

Care to elaborate on this one?

 

[kebinu]

Is the car normal plate or opc?

If normal plate then easy calculation. Formula can be found online.

If opc, then see how much is the Coe. If its more than 17k then no problem.

If less than, then it will eat into parf rebate later.

 

[Wataru]

Are balloon loans still legal in light of the new restrictions on car loans?

 

[ninpeh]

Care to elaborate on this one?

can refer to kebinu's advice.
for OPC car, need to know what was the COE paid for.
I rem if less than 17k, then no PARF value.

 

[kebinu]

Ah Yar. Balloon scheme is no more.

 

[ninpeh]

Ah Yar. Balloon scheme is no more.

i'm actually curious as to those borrowed under balloon scheme.
if they were to sell their cars, does that mean they need to cough out the PARF value?

 

[Wataru]

i'm actually curious as to those borrowed under balloon scheme.
if they were to sell their cars, does that mean they need to cough out the PARF value?

Yes, which is why balloon scheme only worked well for those high-OMV cars with only a few years left and u intent to drive until scrap

 

[Mr Lim888]

can refer to kebinu's advice.
for OPC car, need to know what was the COE paid for.
I rem if less than 17k, then no PARF value.

If the car I bought is OPC, OMV is $8k and COE is $10k, meaning I would not get back any if I deregister it before 10th year.....becos coe is less than $17k?