What is ARF and PARF?

F Takumi SG

Question

I looked at Hyundai's website http://singapore.hyundai-motor.com/, the ARF nett price for Getz 1.6 GLS 5DR AUTO is $41,273 while its On The Road Price With COE is $52,888, so the COE offset is $11,000. If I buy OPC does it mean that the $17,000 rebate would also be used to offset the ARF?

huoye SG

ARF is additional registration fee which i think is the tax i believe. And the PARF is the amount you get after the exipry of the COE after 10years

F Takumi SG

Thanks, so ARF is car price plus tax while PARF is OMV.

kbh SG

hihi… does that mean that omv is the same as praf? izzit that after the coe expire we will get back the amount stated in omv or praf? I see some car put their coe value down what does that mean? thankz if you could answer my question.

F Takumi SG

I also heard that you’ll only get back 65% of PARF at the end of 10 years, can anyone enlighten on this?

huoye SG

65% of PARF means at the end of 10yrs u will get back 65% of the OMV

fondue SG

From LTA website

Registration Fee (RF) $140
Additional Registration Fee (ARF) 110% of OMV *1 130% of OMV *2
Certificate of Entitlement (COE) Bid in Categories A, B or E
Customs Duty 20% of OMV
Life Span No Statutory Life Span

1 For cars registered with COEs obtained from March 2002 tender exercise and onwards.
2 For cars registered with COEs obtained before March 2002 tender exercise.

Ah Wei SG

55% now, no longer 65%.

guitarman1 SG

OMV (open mkt value) = A figure decided by Singapore customs based on the car's purchase price, freight, insurance, handling + other charges etc..

ARF (additonal registration fee) = 110% of the OMV for cars registered after Mar 2004

PARF (preferential ARF, aka scrap value) = 50% of ARF paid at the end of 10 years (if scrap earlier get more, refer to onemotoring website) or can directly calculate as 55% of OMV

so PARF is NOT equal to OMV.

Wif the OMV, which most car dealers put, you can then calculate the ARF and then subsequently the PARF.

If the car belongs to the old school, I think its May 2002 and before or something, then directly 80% of the OMV is the PARF value at end of 10 years.

fondue SG

see http://www.lta.gov.sg/motoring_matters/motoring_vo_tax_pte.htm

for complete tax structure

asianwolf SG

hi everyone,

i am also struggling with these coe, parf and omv. i need to understand them in order to choose which car to buy. lets say there is a car for sale as below, how do we know if this is a good buy. good buy means we are not cheated by the dealer. lets presume the car is accident-free.

Toyota Corolla 1.5A

Price: $52,800
Engine Capacity: 1500 cc
Gear: Auto
Mileage: 67,000 km
Vehicle Features: Airbag (Driver), Airbag (Passenger), ABS
Accessories: Sports Rim, Leather Seats, CD-Changer, Reverse Sensors
Description: Made in Japan. Assured high quality. Price negotiable.
Registration Date: 02-May-2003
Depreciation: $5,531 per year
COE: $29,999
OMV: $15,290
No. of owners: 1

fondue SG

Toyota Corolla 1.5A

Price: $52,800
Engine Capacity: 1500 cc
Gear: Auto
Mileage: 67,000 km
Vehicle Features: Airbag (Driver), Airbag (Passenger), ABS
Accessories: Sports Rim, Leather Seats, CD-Changer, Reverse Sensors
Description: Made in Japan. Assured high quality. Price negotiable.
Registration Date: 02-May-2003
Depreciation: $5,531 per year
COE: $29,999
OMV: $15,290
No. of owners: 1

fyi, for a new corolla altis, the depreciation is only about 5.2k if you drive for full ten years.

however, if you sell your new car after 1 or 2 yrs, you will loose more than 5.2k a year (assuming coe remains at current level)

if you intend to change car in two years time, you can consider the car above (base on price only) but bargain down the price. To me, it doesn't make sense to buy a 2nd hand car if its annual depreciation is higher than a new car.

asianwolf SG

thank you for your answer.

i am not sure how much should i bargain. normally what is the mark-up of car dealers and around what percent of the asking price is reasonable to bargain Question

fondue SG

a quick way to get a idea of how much you should pay for a 2nd hand car is by looking at the annual depreciation.

for this car, your rebate at end of 10yrs is 55% of omv which is about 8.4k.
suppose you are willing to take $A of depreciation a year, than your asking price shld be around $A x no. of years left plus 8.4k.

i don't think car dealers have a fix mark-up. they usually price the car at a certain annual depr level even if they got the car real cheap. my friend was only offered paper value (parf+coe rebate) for his 3+yr galant Sad
he lugi about 16k per annum for a galant !!!

asianwolf SG

thank you fondue, you have been very helpful.

i prefer as low depreciation as possible, perhaps between 3k-4k per yr. i also dont mind what make and shape the car is, except it must be japanese or european. i also dont mind the road tax and insurance. what i mind very much is the quality of the car, that is, it wont break down all the time or cant run properly on the highway or have strange noise here and there. do you think i can find a car like that for less than $30k Question i dont plan to get a loan right now.

sorry, another question. i just saw this ad in sgcarmart:

Mercedes Benz 190E (COE till 03/2011)

Price: $21,000
Engine Capacity: 2000 cc
Gear: Auto
Mileage: -
Vehicle Features: 2.0L injection
Accessories: New 17 rims, leather, paint, suspension
Description: Car re-built 6 months ago. Will last for a long time without major repair
Registration Date: 04-Apr-1991
Depreciation: $3,761 per year
COE: $26,975
OMV: -
No. of owners: 6
Type of Vehicle: Sedan

...................

what does it mean by the part under Description: Car re-built 6 months ago. Will last for a long time without major repair Question

is it possible to check the quality of such an old car if i bring the car to the mechanic, will the mechanic be able to tell

fondue SG

Don't think you want a cars this old if you are looking at reliability Wink

I don't think 30k is a realistic budget for your requirement. Reliability and low price doen't always go together. IF you have 30k cash, then you might want to consider a new car but take 10 to 20k of loan. depreciation wise is pretty close to 2-3 yrs car, plus you get factory warranty for the next 3 yrs. Maybe you can consider the two cars below :

1. Toyota vois 52k - argubably one of the most reliable budget car, but annual depreciation is about 4.7k

2. Kia Picanto 41k - one of the cheapest, but being korean, its reliability is not as reputable as a toyota. dep < 4k

with your budget, you might want to consider opc if your usage is more for evenings and weekends. go pick up a free copy of "Carbuyer" guide from the nearest petrol station. you'll get lots of info to elp in your search

anyone with mor recomendations ??

asianwolf SG

thank you so much.

btw, what is the meaning of ^car was rebuilt^ Question is it an industry-jargon

the reason why i am considering old car is becos i really cant predict how long i need to use it. if i buy new car, then after say a year or less i sell it, i will loo-gee a lot of money, right