PARF in plain English. PARF stands for Preferential Additional Registration Fee. It is a tax rebate the Singapore government pays back to owners who deregister a car that is under 10 years old. The rebate is meant to encourage owners to scrap older, more polluting vehicles and keep the car population modern.
Who actually qualifies. Two conditions. First, the car must be deregistered, that means cancelled off the road by LTA, not sold privately to another driver. Second, the car must be less than 10 years old at the date of deregistration. If either condition fails, PARF is zero. There is no partial payment and no appeal.
How the rebate is calculated. The rebate uses a simple sliding scale tied to age. A car deregistered at age 0 to 5 years gets roughly 75% to 95% of the Open Market Value (OMV) refunded. From age 5 onwards the percentage drops each year. By age 9 the rebate is around 15%. At age 10 or older it is nothing. For a typical car, the PARF rebate can range from a few thousand to over twenty thousand dollars depending on the make, model, and OMV.
Why this matters at resale time. When owners shop around for the best cash offer, they often compare dealers purely on the headline price. The smarter comparison includes PARF, because a buyer who can put the car back on COE in their own name captures the full rebate value. That difference can be substantial, especially for cars deregistered under age 7.
Common myths to ignore. Myth one: PARF is paid automatically when the car is sold privately. False, only deregistration triggers it. Myth two: PARF is the same as COE rebate. Different programme, COE rebate applies after COE expires at age 10 or 20, PARF is the early-deregistration bonus. Myth three: COE cars under 10 years get both. No, PARF pays on deregistration, COE rebate pays only on expiry or non-renewal.
Where most owners leave money on the table. Holding onto a 9-and-a-half-year-old car and hoping to extend COE is a gamble. Below 10 years, PARF is still meaningful. Above 10 years, it vanishes. The decision point is sharp: sell or scrap before the 10-year anniversary of registration if the rebate is meaningful to you.
How to claim it. Step one, the registered owner deregisters the car through LTA. Step two, LTA processes the rebate and refunds the registered owner, not the buyer. So if you sell a PARF-eligible car privately, the PARF rebate goes to whoever's name is on the registration, which is still you. That is why direct-to-dealer sales price the rebate into the cash offer the buyer pays you.
When a dealer is the faster path. Direct buyers like Wheeley pay the rebate value upfront as part of the offer. The owner walks away with cash in hand, no LTA paperwork, no 4-to-6-week wait for the cheque. For owners who do not want to chase a government refund, or who simply want certainty on the day, this is the cleaner route. Always get a written quote that explicitly states whether PARF has been included in the offer.
Pre-flight checklist for owners. Have the car's registration card (vehicle log card) ready. Confirm whether the car is under 10 years on today's date, not on the COE expiry date. Have a recent NRIC and a copy of the loan statement if there is still an outstanding hire-purchase balance. Decide whether you want to chase the rebate yourself, or take it as instant cash from a direct buyer.
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Frequently asked
Does a COE renewal reset the 10-year clock?
No. The 10-year clock is measured from the registration date of the vehicle, not the COE renewal date. A 5-year renewed COE on an 11-year-old car still receives zero PARF.
Can a foreigner claim PARF?
Yes, as long as they are the registered owner at the time of deregistration.
Is the PARF rebate taxable income?
No. PARF is treated as a refund of registration fees, not income. It does not appear on the IR8A or in tax filings for owner-employees.
How long does LTA take to pay out?
Typically 4 to 6 weeks after deregistration completes, paid by cheque in the registered owner's name.
Can I keep the car plates?
No. When a car is deregistered, the existing plates are usually surrendered to LTA. Retained plates require a separate application and approval.