A guide to OMV, PARF and COE rebates

A guide to OMV, PARF and COE rebatesThe Land Transport Authority (LTA) will give you some money back when you deregister your car and/or scrap your car. They are known as the Certificate of Entitlement (COE) and Preferential Additional Registration Fee (PARF). Here is a guide to OMV, PARF and COE rebates.

Open Market Value (OMV)

In order to calculate the COE and PARF rebate, we have to first find out your Vehicle’s Open Market Value (OMV). OMV is the actual price of the vehicle before taxes, COE, GST and administration fee. The OMV is inclusive of the purchase price, insurance, freight and delivery cost.

 

Additional Registration Fees (ARF)

The Additional Registration Fees (ARF) is a tax imposed upon registration of a vehicle which is used to determine the PARF later on. It can be calculated based on the percentage of the OMV of the vehicle.

An example of a car with an OMV of $80,000:A guide to OMV, PARF and COE rebates

The ARF payable is ($20,000+$42,000+$54000) = $116,000           

 

Car’s deregistration value?

(COE rebate + PARF rebate) = deregistration value

 

COE rebate

Rebates will be given to those who deregistering their car before their COE expires in its’s 10th year. The amount will be based on the remaining COE left on your car and Quota Premium (QP) that you’d last paid.

COE rebate = (Quota Premium paid x Number of months left)/120 months

For example:

COE cost: $40,000

Expiry date: 15th June 2023

Deregistration date: 6th May 2021

Your unused COE duration:

From 7th May 2021 to 15th June 2023 = 2 years 1 month 10 days = 26.3

And therefore, COE rebate is = ($40,000 x 26.3)/120 = $8766.67

 

PARF rebate

You will be entitled to a PARF rebate if you deregister a car that is less than 10 years old. This rebate allows you to recover the ARF when you first registered the car.

PARF rebate = ARF x % based on the age of your car

A guide to OMV, PARF and COE rebates

For example:

ARF is $116,000 and you decide to deregister your car when it is 7 years and 3 months old, your PARF rebate would be $116,000 x 60% = $69,600.

 

Remember that to obtain both the COE and PARF Rebate, your car has to be below 10 years old. If your COE has been renewed, you will only be eligible for the COE rebate. Also, if your car is over the age of 10 and the COE has already expired, you will not be eligible for either. Now you know how to calculate the OMV PARF and COE rebates, plan out well to maximize rebates.

Get It Now for Free