What is a PARF Rebate?

Let’s kick off with the basics. PARF stands for Preferential Additional Registration Fee. It is a rebate you can get in Singapore when you scrap or export your car.

Think of it as a thank-you gift for letting go of your ride early.

How Does It Work?

When you buy a new car in Singapore, you pay the registration fee. Part of that fee comes back to you later as the PARF rebate.

The catch? Your car must be less than 10 years old when you deregister it. The younger the car, the bigger the rebate.

For example, scrap a 5-year-old car and you will get more back compared to one that is 9 years old. Simple math.

Why Does It Exist?

The rebate is there to encourage car owners to refresh the car pool. Old cars go out, newer ones come in.

So you help keep roads safer plus reduce pollution. Then you get money back. Fair deal.

I remember when my uncle scrapped his Toyota at 8 years. He was happy with the rebate but joked it felt like parting with an old friend.

How Much Can You Get?

The rebate is tied to the car’s Open Market Value (OMV). This is what your car would cost before taxes and fees.

Here is the rough guide:

• Less than 5 years old: you can get up to 75% back.
  
• Between 5 and 10 years: the percentage drops gradually.
  
• More than 10 years: no rebate at all.
  

So if your OMV was $20,000 and you scrap the car at 6 years old, you could still get a healthy sum. It softens the pain of saying goodbye to your car.

How Do You Claim It?

The Land Transport Authority (LTA) handles the process. When you deregister, the rebate goes straight into your account.

No messy forms. No chasing. Just a straightforward process.

You can also transfer the rebate to offset the cost of your next car. Many people do this to make their next purchase lighter on the wallet.

Tips to Maximise Your Rebate

Here is a little advice. Do not wait until the last month before 10 years. Once your car hits that mark, the rebate vanishes.

Plan ahead. Check the rebate table on the LTA site. Run the numbers early.

Another tip: if you are unsure, talk to a dealer or exporter. Sometimes exporting the car earns you more than scrapping it locally.

Common Questions

Do motorcycles get a PARF rebate?
No, it applies only to cars registered with a COE under Category A or B.

Can I cash out the rebate?
Yes. The money goes into your bank account, or you can use it to offset your next vehicle purchase. What if my car is more than 10 years old?
You get zero rebate, but you can still receive a Certificate of Entitlement (COE) rebate if you deregister before expiry.

Final Thoughts

Think of PARF rebate as money you parked away when you first registered your car. When you deregister, you simply take some of it back.

So if you are planning to let go of your car, check the age, run the numbers, and see what you can get.

It is like finding forgotten cash in your old jacket pocket.