How the 2026 PARF changes affect your car’s value
Published · Updated · 5 min read · PaperValue.sg
The 2026 PARF revision reduces the rebate rates by 45 percentage points and lowers the cap from $60,000 to $30,000 for the affected cohort. For a car with $20,000 in net ARF, the rebate in the final eligible age band falls from $10,000 to $1,000.
Existing cars retain their applicable schedule. A 2017 car does not lose its old PARF entitlement because the rules changed in 2026. LTA’s announcement.
Which cars are affected?
For cars that need a COE, the new schedule applies to COEs obtained from the second bidding exercise in February 2026 onwards. Registration date alone does not identify the scheme reliably near that boundary.
The 13 February 2026 registration cutoff applies to cars that do not need a COE for registration, such as taxis and COE-exempt cars.
There are three cohorts to distinguish:
| COE obtained | PARF rates | Rebate cap |
|---|---|---|
| Before the second February 2023 exercise | Earlier schedule | No cap |
| Second February 2023 through first February 2026 exercise | Earlier schedule | $60,000 |
| Second February 2026 exercise onwards | Revised schedule | $30,000 |
Check OneMotoring’s rebate enquiry for your vehicle and intended deregistration date. The full eligibility rules are on LTA’s PARF and COE rebate page.
The rebate schedule
Percentages apply to net ARF paid, after applicable tax incentives, and are subject to the cohort’s cap.
| Age at deregistration | Earlier rates | Revised rates |
|---|---|---|
| Not more than 5 years | 75% | 30% |
| Above 5, not more than 6 years | 70% | 25% |
| Above 6, not more than 7 years | 65% | 20% |
| Above 7, not more than 8 years | 60% | 15% |
| Above 8, not more than 9 years | 55% | 10% |
| Above 9, not more than 10 years | 50% | 5% |
| More than 10 years | Nil | Nil |
A reduction from 50% to 5% is 45 percentage points, equivalent to a 90% reduction in that uncapped payout. Saying “PARF fell 45%” understates this example.
What the change costs in dollars
These are hypothetical ARF amounts, not current quotations for specific car models. They compare the $60,000-cap cohort with the revised cohort at above nine but not more than ten years old, with all other factors held constant.
| Net ARF paid | Earlier PARF | Revised PARF | Lower payout |
|---|---|---|---|
| $20,000 | $10,000 | $1,000 | $9,000 |
| $60,000 | $30,000 | $3,000 | $27,000 |
| $200,000 | $60,000, capped | $10,000 | $50,000 |
Spread over ten years, the lower payout adds respectively $900, $2,700 or $5,000 a year to depreciation if purchase prices and other exit proceeds are unchanged.
Caps matter. The payout difference is not always 45% of ARF: in the last row, the earlier rebate was already capped.
What existing owners keep
Your existing PARF entitlement does not increase or decrease because a new cohort gets different terms. It continues to decline with age under your own schedule.
A larger future rebate can make an older-scheme car more attractive than an otherwise comparable newer-scheme car. That is a reason to check both rebates, not a guarantee that the older car’s market price has risen. Remaining COE, mileage, condition and competing listings still affect the price.
When selling, compare offers with your current paper value and relevant market listings. The buyer acquires the car’s remaining entitlements; you do not receive an additional PARF payout from LTA just for transferring ownership.
Why EVs can have a smaller PARF difference
Upfront EV incentives can reduce net ARF, which also reduces the amount used to calculate PARF.
For example, if a qualifying EV has $40,000 gross ARF and receives the full $30,000 of 2026 incentives, its net ARF is $10,000. A 50% versus 5% PARF comparison then gives $5,000 versus $500.
That is an illustration of the rebate base. Actual eligibility and amounts depend on the car. See LTA’s EV incentive terms and our 2026–2027 rebate comparison.
What to do before buying, selling or renewing
- Buying: use the car’s net ARF and applicable PARF schedule in your depreciation calculation.
- Selling: obtain the vehicle’s official rebate figure and compare written offers.
- Renewing: include the PARF and sale proceeds you would give up. Cars reaching ten years in 2026 generally belong to the earlier cohort; the new schedule does not rewrite their renewal decision.
Our renew-or-sell guide shows how to compare the alternatives over the same holding period.
Frequently Asked Questions
Does a March 2026 registration automatically mean the new PARF schedule?
No. For a car requiring a COE, the relevant cutoff is the COE bidding exercise. Check the actual vehicle record.
Is the $30,000 cap the amount everyone receives?
No. The rebate is the applicable percentage of net ARF, limited to the cap. Many cars receive much less.
Does the revision affect renewed-COE cars?
Renewed-COE cars have already lost PARF eligibility. Their deregistration value depends on any remaining COE rebate and other disposal proceeds.
Can I use PaperValue’s calculation as the final LTA figure?
Use the report to understand the values and compare offers. Confirm the payable rebate with OneMotoring, especially near a policy cutoff or age-band boundary.