By The Big Buy desk · Last verified 28 September 2026
When you deregister a car before it turns 10, you get two refunds. The PARF rebate returns part of the Additional Registration Fee (ARF) you paid, and the COE rebate returns the unused part of your Certificate of Entitlement. Budget 2026 cut the PARF rebate sharply for new cars. Cars registered with COEs from the second bidding exercise of February 2026 get 30 per cent of the ARF back within five years, falling to 5 per cent at nine to ten years, capped at S$30,000. Older cars keep their earlier, more generous schedules.
Quick facts
- PARF rebate: part of the ARF back if you deregister within 10 years.
- COE rebate: the unused part of the COE, by months remaining.
- Cars with COEs from the second February 2026 exercise: 30% down to 5%, capped at S$30,000.
- Cars from the second February 2023 exercise: 75% down to 50%, capped at S$60,000.
- Cars from before that: 75% down to 50%, no cap.
- No PARF rebate after 10 years.
Which schedule applies to my car?
| Age at deregistration | COE before 2nd Feb 2023 exercise | COE from 2nd Feb 2023 exercise | COE from 2nd Feb 2026 exercise |
|---|---|---|---|
| Up to 5 years | 75% of ARF | 75%, max S$60,000 | 30%, max S$30,000 |
| 5 to 6 years | 70% | 70%, max S$60,000 | 25%, max S$30,000 |
| 6 to 7 years | 65% | 65%, max S$60,000 | 20%, max S$30,000 |
| 7 to 8 years | 60% | 60%, max S$60,000 | 15%, max S$30,000 |
| 8 to 9 years | 55% | 55%, max S$60,000 | 10%, max S$30,000 |
| 9 to 10 years | 50% | 50%, max S$60,000 | 5%, max S$30,000 |
| Over 10 years | Nil | Nil | Nil |
For cars that don’t need a COE, such as taxis, the 2026 schedule applies to those registered on or after 13 February 2026. PARF rebates don’t apply at all to goods vehicles, classic cars and laid-up vehicles.
What does that mean in dollars?
Take a car on which S$40,000 of ARF was paid, deregistered at five years. Under the old schedule, the PARF rebate is S$30,000. Under the 2026 schedule, it’s S$12,000. At nine to ten years, the old schedule pays S$20,000 and the new one S$2,000.
Why the change?
PARF was designed to encourage owners to replace older, more polluting cars early. As electric vehicles become common and cars get cleaner, LTA says the need for that incentive has fallen.
How does the COE rebate work?
It refunds the unused part of the COE, pro-rated by the months remaining. A car deregistered at the end of its 10-year COE gets no COE rebate, because there’s no COE value left.
The WahLiao Verdict
If you’re buying a new car now, assume a much smaller PARF cheque at the end and budget the depreciation accordingly. If yours is on an older schedule, check its PARF value before deciding whether to renew the COE or deregister.
Questions people ask
Do I lose the PARF rebate if I renew my COE?
Yes. PARF is paid only if you deregister within the car’s first 10 years.
How do I know which schedule my car is on?
It depends on when the car’s COE was obtained. LTA’s OneMotoring portal shows your car’s PARF and COE rebate values.
Does the new cap affect cheaper cars?
The lower percentages affect every car on the 2026 schedule. The S$30,000 cap only matters for cars that paid a high ARF.
Is the COE rebate affected?
The Budget 2026 change was to the PARF rebate.
Sources: LTA, revision of PARF rebate schedule and cap (February 2026); LTA, 2023 PARF rebate cap; LTA OneMotoring, tax structure; Dollars and Sense on scrap value and depreciation. The dollar examples are the desk’s own arithmetic.
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