Why Trust MoneySmart?Key Takeaways
COE rebates are a partial refund of the unused portion of your Certificate of Entitlement when you deregister your vehicle early.
PARF rebates are rebates based on the Additional Registration Fee (ARF) paid, given when you deregister a car under 10 years old.
COE rebates apply after any COE term, while PARF rebates are only available if the COE has never been renewed.
PQP is the average COE price over the past three months, used when renewing your COE without bidding.
Use a COE renewal loan to renew your existing COE, a car loan to buy a new car, or a personal loan for all types of scenarios.
Most of us know that owning a car in Singapore means spending a hefty sum on a Certificate of Entitlement (COE). But fewer realise that you can actually get some of that money back when you give up your car early.
COE rebates are partial refunds if you deregister your car before the COE expires. If your car is not more than 10 years old, you might also qualify for a Preferential Additional Registration Fee (PARF) rebate, which returns part of the Additional Registration Fee (ARF) you originally paid.
Then there’s the Prevailing Quota Premium (PQP)—the moving average of COE prices over the last three months—which you’ll need to pay if you choose to renew your COE instead of deregistering.
In this guide, we’ll unpack how these rebates work, who’s eligible, how to calculate them, and what to consider when deciding whether to renew or deregister your car.
What are COE Rebates in Singapore?
A COE rebate in Singapore is a partial refund a car owner may receive when they deregister their vehicle before the COE expires.
Once you obtain a COE through a COE bidding exercise, you can register and use your car for up to 10 years. But if you decide to deregister your vehicle before the COE term ends, you can receive a COE rebate, meaning you get to reclaim a portion of your car's original cost.
Essentially, the COE rebate provides a financial incentive for those who opt to deregister their vehicles early.
The amount of the rebate varies, depending on factors such as the amount you paid for the COE and how much time remains on its validity. We explain how to calculate it in the next section.
COE rebates eligibility
You can claim a COE rebate if you meet these conditions:
Your car must be deregistered before the COE expires. No rebate will be given if the COE has already lapsed.
The rebate must be used before it expires. COE rebates are valid for 12 months from the vehicle registration date.
To use a COE rebate, ensure that you have:
Settled all outstanding fees or charges related to the car with LTA
Fully repaid any existing car loan with your financing institution
Properly disposed of your deregistered car by scrapping it at an LTA-appointed scrapyard, storing it at an LTA-appointed Export Processing Zone (EPZ) pending export, or exporting it and submitting export documents
How do you calculate COE rebate?
To calculate the COE rebate, you need to consider the remaining validity period of the COE, along with the Quota Premium (QP) you paid to obtain it. In the case of a renewed COE, the Prevailing Quota Premium (PQP) applies instead.
When a vehicle is deregistered, the COE rebate is based on the QP or PQP you paid, pro-rated to the time remaining on your car’s COE.
If you can’t find a COE rebate calculator, you can compute your rebate with this simple formula:
(QP or PQP × Number of unused months of COE) ÷ 120 months |
|---|
Let’s say you own a vehicle with the following details:
QP/PQP paid for COE: $18,500 |
Deregistration date: 1 Feb 2024 |
COE expiry date: 3 June 2026 |
From 1 Feb 2024 to 1 Jun 2026, the unused period of the COE is 28.1 months.
From 2 Feb 2024 to 31 May 2026: 28 full calendar months
From 1 to 3 Jun 2026: 3 days or 0.1 months (based on a 30-day month)
Applying our formula, we get:
COE rebate = ($18,500 × 28.1) ÷ 120 = $4,335.42 |
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This would be the amount refunded to you upon deregistration of your car on 1 Feb 2024, based on the unused portion of the COE.
How to claim a COE rebate?
You have 3 options to claim a COE rebate:
Ways to redeem COE rebate | How to redeem |
|---|---|
Encash it | Online using Singpass or at the LTA counter if you are not eligible for Singpass |
Use it to offset taxes and fees when registering a new car or renewing the COE of an existing one. This includes: Registration Fee (RF), ARF, QP, and the PQP for another vehicle. | Enquire with your motor agent |
Transfer them to another party | Online using Singpass or at the LTA counter if you are not eligible for Singpass. Note that each transfer incurs a fee of $20 (inclusive of GST) |
MoneySmart Tip |
You can divide your COE rebate if you want to take different actions on different portions of it. For example, you can encash one portion of it and transfer the remainder to someone else. Divide your COE rebate online using Singpass, or at the LTA counter if you are not eligible for Singpass. The same process applies to PARF rebates as well. |
What is PARF?
PARF stands for Preferential Additional Registration Fee. It is a rebate given when you deregister a PARF-eligible car or taxi before it exceeds 10 years of age, provided the COE has not been renewed. Like the COE rebates, PARF rebates serve as an incentive to retire older vehicles.
PARF rebate structure & eligibility
To be eligible for a PARF rebate, your car must:
Have been registered in Singapore as a brand-new car, or as a used imported car registered on or after 1 September 2007
Be no more than 10 years old at the time of deregistration
Not have been laid up before
The percentage of PARF rebate you will receive depends on the age of your car at deregistration. Following Budget 2026, these rebate percentages have been significantly reduced. You may also be subject to a PARF rebate cap of $30,000, which we’ll discuss in the next section. The revised PARF rebate rates apply to vehicles deregistered from the Feb 2026 COE bidding exercise onwards.
MoneySmart Tip |
Deregister your car earlier to receive a higher PARF rebate, which is based on the age of your car. |
How do you calculate the PARF rebate?
The PARF rebate is calculated based on:
The Additional Registration Fee (ARF) you originally paid, and
The age of your vehicle at the point of deregistration
In general, the younger your car is when you deregister it, the higher your PARF rebate.
However, the rebate percentage and cap depend on when your vehicle was registered, as the structure has been revised over time.
1. For cars registered from Feb 2026 onwards (latest rules)
Under Budget 2026, PARF rebates have been significantly reduced and capped at $30,000 (whichever is lower):
Age of vehicle at deregistration | PARF rebate amount |
|---|---|
Not more than 5 years | 30% of ARF paid or $30,000 |
Above 5 but not more than 6 years | 25% of ARF paid or $30,000 |
Above 6 but not more than 7 years | 20% of ARF paid or $30,000 |
Above 7 but not more than 8 years | 15% of ARF paid or $30,000 |
Above 8 but not more than 9 years | 10% of ARF paid or $30,000 |
Above 9 but not more than 10 years | 5% of ARF paid or $30,000 |
More than 10 years | Nil |
2. For cars registered between Feb 2023 and Feb 2026
These vehicles follow the previous structure, with a higher cap of $60,000:
Age of vehicle at deregistration | PARF rebate amount |
|---|---|
Not more than 5 years | 75% of ARF paid or $60,000 |
Above 5 but not more than 6 years | 70% of ARF paid or $60,000 |
Above 6 but not more than 7 years | 65% of ARF paid or $60,000 |
Above 7 but not more than 8 years | 60% of ARF paid or $60,000 |
Above 8 but not more than 9 years | 55% of ARF paid or $60,000 |
Above 9 but not more than 10 years | 50% of ARF paid or $60,000 |
More than 10 years | Nil |
3. For cars registered before Feb 2023
These vehicles follow the original structure with no rebate cap:
Age of vehicle at deregistration | PARF rebate amount |
|---|---|
Not more than 5 years | 75% of ARF paid |
Above 5 but not more than 6 years | 70% of ARF paid |
Above 6 but not more than 7 years | 65% of ARF paid |
Above 7 but not more than 8 years | 60% of ARF paid |
Above 8 but not more than 9 years | 55% of ARF paid |
Above 9 but not more than 10 years | 50% of ARF paid |
More than 10 years | Nil |
The PARF rebate is calculated based on the Additional Registration Fee (ARF) paid, which itself is determined by your car’s Open Market Value (OMV). If your vehicle has received other rebates—such as the Vehicle Emission Scheme (VES) or Off-Peak Car (OPC) rebates—the PARF rebate will be computed using the net ARF paid after these incentives are applied.
Do note that once your vehicle exceeds 10 years old, it will no longer qualify for any PARF rebate.
The table below shows which PARF rebate cap—none, $60,000, or $30,000—applies based on your vehicle’s registration date and whether it required a COE.
Category | Cars registered with COEs | Cars that do not need to bid for COEs (e.g. taxis) |
|---|---|---|
No PARF rebate cap | COE registered before the second COE bidding exercise in Feb 2023 | Car registered before 15 Feb 2023 |
PARF rebate cap of $60,000 applies | COE registered from the second COE bidding exercise in Feb 2023 to the first COE bidding exercise in Feb 2026 | Car registered from 15 Feb 2023 to 12 Feb 2026 |
PARF rebate cap of $30,000 applies | COE registered from the second COE bidding exercise in Feb 2026 onwards | Car registered on or after 13 Feb 2026 |
MoneySmart Tip |
If the PARF rebate cap applies to your car, deregistering it earlier may not increase the amount you receive. Refer to the tables above to check if the cap affects you, and at what vehicle age you can maximise your rebate. |
COE Rebates vs PARF Rebates—What’s the Difference?
Feature | COE Rebate | PARF Rebate |
|---|---|---|
What it is | Refund of the unused portion of the COE | Rebate based on the ARF paid |
When it applies | When a vehicle is deregistered before the COE expires | When a vehicle is deregistered within the original, non-renewed 10-year COE term |
Eligibility | Applies to all vehicles with unexpired COEs (original or renewed) | Applies only to vehicles that have not renewed their COE |
Calculation basis | Pro-rated based on the unused months of COE | Based on vehicle age at deregistration and ARF paid |
Validity period | 12 months from vehicle deregistration date | 12 months from vehicle deregistration date |
Offsetting vehicle taxes and fees | Can be used to offset the Registration Fee (RF), ARF, QP, Used Car Surcharge and CEVS Surcharge to register a new car. | Can be used to offset the Registration Fee (RF), ARF, QP, Used Car Surcharge and CEVS Surcharge to register a new car. |
Offsetting PQP | Can be used to offset the PQP you need to pay to renew the COE for another car you own | Cannot be used to offset PQP |
What is PQP?
The Prevailing Quota Premium (PQP) is the amount you pay to renew your vehicle's Certificate of Entitlement (COE) in Singapore.
Instead of going through the COE bidding process again, you can choose to renew your COE by paying the PQP, which is essentially a moving average of recent COE prices in the last 3 months.
You can choose to renew your COE for 5 or 10 years, but do note that if you opt for a 5-year renewal, you won’t be allowed to renew it again—only a 10-year renewal permits future extensions.
PQP vs COE Rebate: Renew or Deregister?
As your COE expiry date approaches, you may be wondering if you should renew it by paying the PQP or deregister your car and enjoy the COE rebates. Here’s a list of pros and cons of each option for you to consider:
Option | Pros ✅ | Cons ❌ |
|---|---|---|
Renew COE by paying PQP | ✅ Convenience of continuing to use your current vehicle ✅ Avoid hassle and cost of buying a new car ✅ No need to bid for a new COE | ❌ Upfront cost can be high, especially when recent COE prices are elevated ❌ Older vehicle may incur higher maintenance costs ❌ Forfeit PARF rebates ❌ 5-year COE renewals cannot be extended again |
Deregister and claim COE rebate | ✅ Receive a partial refund for the unused COE ✅ Option to switch to a newer, more efficient car ✅ Lower repair and maintenance costs with a newer vehicle | ❌ Must go through vehicle disposal process ❌ Need to bid for a new COE (which may be costly or uncertain) ❌ Loss of convenience and familiarity with current car |
Using a Loan to Fund Your PQP or New COE
If you decide to renew your COE by paying the PQP or buy a new car, these costs can be substantial—even after claiming COE rebates. Depending on your situation, you can choose from three loan types:
Loan type | Best for | Interest rates | Repayment terms | Collateral required | Key considerations |
|---|---|---|---|---|---|
COE Renewal Loan | Renewing your existing vehicle's COE | Lower rates (typically below personal loans) | Up to 7 years | Yes (vehicle) | Tied to your current car; keeps your familiar vehicle; no need to bid for new COE |
Buying a brand new or used car with fresh COE | Competitive rates (similar to COE renewal loans) | Typically 5-7 years | Yes (vehicle) | Requires downpayment; tied to new vehicle purchase; competitive rates for secured financing | |
Any financing purposes (e.g. PQP payment, car purchase, or related expenses) | Higher rates (unsecured) | Shorter terms (1-5 years) | No | Maximum flexibility; no vehicle pledge |
Personal loans usually come with shorter repayment periods. While this may result in higher monthly installments, it also means that the total interest paid could be lower over time.
💡 MoneySmart Tip |
Use trusted online comparison tools like MoneySmart's personal loan comparison to review personalised rates, eligibility, and requirements across major banks in Singapore—helping you make a more informed choice quickly. |
Keep in mind that taking a personal loan affects your Total Debt Servicing Ratio (TDSR), which limits how much of your monthly income can go toward repaying debt. A higher TDSR may reduce the amount a bank is willing to lend you for a hire purchase, impacting your ability to secure additional vehicle financing and defeating the purpose of a loan.
Personal loan | Interest rate | Total amount payable | Monthly repayment* |
|---|---|---|---|
From 1.00% p.a. | $10,100 | $842 | |
From 1.83% p.a. | $10,183 | $849 | |
From 1.00% p.a. | $10,100 | $842 | |
From 1.99% p.a. | $10,268 | $856 | |
From 1.48% p.a. | $10,148 | $846 | |
From 1.08% p.a. | $10,288 | $857 | |
From 1.00% p.a. | $10,100 | $842 | |
From 1.00% p.a. | $10,100 | $824 | |
From 3.45% p.a. | $10,356 | $863 | |
From 10.50% | $11,050 | $921 |
*Assuming borrowing $10,000 over a 1-year tenure
Loan Repayment Calculator
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