Depreciation

Annual depreciation is the amount the owner loses on the value of the vehicle per year based on the assumption that the vehicle is deregistered only at the end of its 10-yr COE life-span. The value of the car body has not been taken into account.

The formula used to derive the figure is as follows:
Depreciation = (List Price - Minimum PARF value) รท remaining years of COE

The minimum Preferential Additional Registration Fee (PARF) value is a sum of money that the vehicle owner gets for deregistering his vehicle at the end of its 10-yr COE. It is a function of the Open Market Value (OMV) or Additional Registration Fee (ARF). Commercial vehicles and cars with renewed COE have no minimum PARF value.

Cars registered with
COEs obtained between
March 2002 & February
2008
Cars registered with
COEs obtained between
March 2008 & February
2013
Cars registered with
COEs obtained from
March 2013 onwards
Minimum PARF
value
55% of OMV
or
50% of ARF
50% of OMV
or
50% of ARF
50% of ARF


Read more about how to compute the relationship been OMV, ARF and PARF in our Guide to tax structure for new cars and deregistration value

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