Singapore Car Loan Full Settlement Calculator 2026 — HP Early Settlement (Rule of 78), PARF Rebate by Car Age, COE Rebate Pro-Rated on Remaining Life & Your Net Deregistration Cash Position

PARF (Preferential Additional Registration Fee) rebate is a government rebate given to Singapore car owners when they deregister (scrap or export) their car within the first 10 years. PARF rebate = PARF% × ARF paid. PARF percentages by car age at deregistration: under 1yr: 75%; 1–2yr: 70%; 2–3yr: 65%; 3–4yr: 60%; 4–5yr: 55%; 5–6yr: 50%; 6–7yr: 45%; 7–8yr: 40%; 8–9yr: 35%; 9–10yr: 30%; 10+ years: 0% (no PARF). Example: ARF paid S$40,000, car deregistered at age 5.5 years (PARF 50%). PARF rebate = 50% × S$40,000 = S$20,000. The PARF rebate is received as a cash voucher (cheque or credit) upon LTA deregistration. If there is an outstanding HP loan, the PARF and COE rebates go to settle the loan first, with any remainder paid to the car owner. The ARF is fixed at the time of first Singapore registration — it does not change as the car ages or changes ownership. Find ARF on your vehicle log card or use OMV to compute it using the 100%/140%/180%/220% sliding scale.

Singapore COE (Certificate of Entitlement) rebate is a pro-rated refund of the original COE premium for the unused portion of the COE. Formula: COE Rebate = Original COE Premium × (Remaining Months ÷ Original COE Period in Months). Original COE period: new car first registration = 10 years (120 months); COE renewal = 5 years (60 months) or 10 years (120 months). Remaining months = months from deregistration date to COE expiry. Example: Original COE premium S$85,000, new 10-year COE, deregistered with 5 years (60 months) remaining. COE rebate = S$85,000 × (60/120) = S$42,500. COE rebate is calculated by LTA based on exact remaining days, not just months — the formula above gives a close approximation. When deregistering a car with outstanding HP loan: LTA pays the PARF and COE rebates; the finance company (HP lender) receives the settlement amount first; any remaining amount is paid to the car owner. Note: parallel import (PI) cars may have different COE structures — verify with LTA if uncertain.

The ARF (Additional Registration Fee) Singapore formula for 2026 uses a sliding scale based on the car’s OMV (Open Market Value): First S$20,000 of OMV: 100% ARF; Next S$30,000 (OMV S$20,001–S$50,000): 140% ARF; Next S$50,000 (OMV S$50,001–S$100,000): 180% ARF; Above S$100,000 OMV: 220% ARF. Example calculations: OMV S$15,000: ARF = 100% × S$15,000 = S$15,000; OMV S$32,000: ARF = 100%×S$20,000 + 140%×S$12,000 = S$20,000 + S$16,800 = S$36,800; OMV S$60,000: ARF = 100%×S$20,000 + 140%×S$30,000 + 180%×S$10,000 = S$20,000 + S$42,000 + S$18,000 = S$80,000; OMV S$120,000: ARF = S$20,000 + S$42,000 + S$90,000 + 220%×S$20,000 = S$20,000 + S$42,000 + S$90,000 + S$44,000 = S$196,000. This calculator auto-computes ARF from OMV when you enter the OMV field — saving you from manual calculation. Note: ARF rates have changed over Singapore’s history — the above reflects 2026 rates for cars registered from January 2018 onwards. For older registrations, verify ARF on LTA OneMotoring or from your log card.

If you deregister a Singapore car with an outstanding hire-purchase (HP) loan: process of payment: LTA processes the deregistration and computes the total rebates (PARF + COE); LTA pays the total rebates to the HP finance company (loan holder) first, up to the settlement amount; the finance company settles your outstanding HP balance from the rebates; any surplus is paid to you (the registered owner) as cash. If total rebates (PARF + COE) > HP settlement amount: Surplus = rebates − settlement goes to you as cash. This is the net positive scenario shown in this calculator. If total rebates < HP settlement amount: you must pay the shortfall (settlement − rebates) to the finance company before deregistration can proceed. This is the net negative scenario — you need to "top up" from your savings. Important: you cannot deregister the car without first arranging full settlement of the HP. Contact your bank for the formal settlement letter, arrange payment (whether from rebates alone or with additional cash top-up), then proceed with LTA deregistration at an authorised deregistration centre.

The optimal deregistration timing in Singapore depends on three factors: (1) PARF cliff: deregister before Year 10 to preserve PARF rebate. The 10-year cliff (PARF drops from 30% to 0%) is the most significant financial deadline. For large ARF amounts (S$50,000+), preserving even 30% before year 10 gives substantial cash. (2) COE value analysis: if the remaining COE is valuable (many months remaining, high original premium), deregistering early “returns” that COE value. Conversely, if COE is almost expired, little rebate remains — in this case, COE renewal may be cheaper than deregistering and buying new. (3) HP equity position: use this calculator to check your net position at different ages/timings. If net is significantly positive today but becomes negative next year (as PARF drops and loan payment continues but COE rebate diminishes less), earlier deregistration may be better. Rule of thumb: deregister when (a) approaching the 10-year PARF cliff, (b) the car has large maintenance costs, or (c) you want to change car and the net position is neutral or positive. Avoid deregistering immediately after the 10-year mark when PARF drops to zero.

COE renewal does not affect the PARF rebate calculation. PARF is always based on: car age from the original first registration date (not the COE renewal date); ARF paid at the time of original registration. Example: Car first registered in 2010. COE expired 2020, renewed for 10 more years (to 2030). If deregistered in 2025 (car age 15 years): PARF rebate = 0% (car is over 10 years from original registration). The COE renewal extended the car’s operational life, but the PARF rebate “clock” started at the original 2010 registration and expired at age 10 (2020). This is an important distinction. When buying a used car with COE renewal: if the car was renewed after 10 years, there is no PARF rebate left. Only the COE rebate (based on the renewal premium) remains as residual value. Buying an older car (11+ years with COE renewal): you receive only COE rebate when eventually deregistering, not PARF. This reduces the floor value of older COE-renewed cars.

Negative equity in the Singapore deregistration context means the HP settlement amount exceeds the total PARF + COE rebates you receive, requiring you to contribute additional cash. This is most common when: car was financed recently (HP principal still high, Rule of 78 settlement hasn’t dropped much); car has a large HP loan relative to its current market value; car has low ARF (low OMV car → low PARF) or is over 10 years (zero PARF); COE has little remaining (low COE rebate). Cash top-up amount = HP Settlement − (PARF + COE). You must arrange this additional cash before LTA can process the deregistration. Options if in negative equity: wait until more HP instalments are paid (settlement drops over time); wait for car age to reach a lower PARF band (but careful of 10-year cliff); consider whether selling to a used car dealer or private buyer generates more than just PARF+COE rebates — a used car may have a scrap/export value plus PARF+COE; ask your HP lender for an early settlement letter and compare the net position at different future dates. Use this calculator to model multiple scenarios before making a decision.

Yes — selling a Singapore car in the used car market (transfer of ownership) rather than deregistering is a separate process with different financials. When you sell to a buyer (not deregister): the car remains in Singapore, so no PARF or COE rebate is paid; instead, the buyer pays a price for the car based on market value; from this purchase price, your HP settlement is cleared; any surplus (market value − settlement) goes to you. Market value vs PARF+COE: for younger cars in good condition, market value may exceed PARF+COE rebates, making selling in the used market more profitable than deregistering; for older cars or cars with high mileage, the market value may be below PARF+COE, in which case deregistration is financially better. The PARF and COE rebates set a “floor” on the car’s minimum liquidation value — if a buyer offers less than PARF+COE for a car with no HP, you’d be better off deregistering (LTA process) than selling at that price. This calculator helps you compute the deregistration floor — compare it to any buyer’s offer to decide whether selling or deregistering is better for your specific situation.

Singapore car deregistration with outstanding HP loan process: Step 1: Obtain formal settlement letter from HP lender (bank or finance company) — shows exact amount to settle and validity period (typically 7–14 days). Step 2: Get an accurate PARF and COE rebate estimate — use this calculator for estimation, but LTA will compute the exact figures at deregistration. Step 3: Arrange deregistration with an LTA-authorised agent (most car dealers can do this, or go directly to LTA). Step 4: On deregistration day — the agent submits deregistration to LTA; LTA computes and pays PARF+COE rebates; the finance company receives the settlement amount; any surplus is paid to you; if deficit (negative equity), you must pay the shortfall first. Step 5: HP charge on vehicle is released — the HP lender’s charge on the log card is cleared. Step 6: Car is either exported to another country or sent to authorised scrap facilities. The entire process typically takes 1–3 business days. Note: if exporting the car (instead of scrapping), you may receive an export rebate on top of the LTA PARF and COE rebates — total deregistration rebates are the same, but the car goes to another country rather than being scrapped.

PARF rebate: Based on the ARF (Additional Registration Fee) tax paid at first Singapore registration. ARF is a government import tax on vehicles. When you deregister, you receive back a percentage of this tax — declining as the car ages (75% at under 1yr to 30% at 9–10yr, zero at 10+yr). PARF is a “reward” for not keeping the car too long — it incentivises car turnover and COE renewal. PARF does not change based on COE premium or car market value. COE rebate: Based on the Certificate of Entitlement premium paid at the time of obtaining the right to use a Singapore road. COE grants 10-year (or 5-year renewal) use of Singapore roads. When deregistered early, the unused portion of this right is refunded pro-rata. COE rebate = premium × remaining months ÷ total period. COE rebate reflects the residual value of road usage rights — it changes based on the original premium paid (which varies with market conditions). Key difference: PARF is about the vehicle import tax (tied to the car itself); COE is about the road usage right (tied to the registration period). Both are received upon deregistration, and together they form the “scrapping value” of a Singapore car beyond any physical scrap metal value.

Three ways to find the ARF paid on your Singapore car: (1) Vehicle log card (registration document): the ARF paid is printed on the log card, which should be in the vehicle’s document file; for used car purchases, ask the seller for the log card (mandatory to produce at LTA transfers); (2) LTA OneMotoring (onemotoring.lta.gov.sg): vehicle information search by plate number; this shows OMV and other details but may not show ARF directly — use the OMV to calculate; (3) Calculate from OMV using the ARF formula: 100% of first S$20,000 OMV + 140% of next S$30,000 + 180% of next S$50,000 + 220% above S$100,000; this calculator auto-fills the ARF when you enter the OMV. Note: ARF rates changed over Singapore’s history. The calculator uses current 2026 rates. For cars registered before January 2018, the ARF rates were different — if using OMV to compute ARF for an older car, the result may not match what’s on the log card. For precision, always use the actual ARF from the log card for PARF calculations on older vehicles.

PARF rebate for individual Singapore car owners is generally not taxable as it is considered a capital refund (return of tax previously paid) rather than income. For companies: PARF and COE rebates received upon deregistering a business vehicle may need to be accounted for in the company’s tax position, particularly if the vehicle was claimed as a capital allowance asset. When capital allowances were previously claimed on the vehicle cost, the deregistration rebates may trigger a “balancing charge” (if rebates exceed the written-down value) or “balancing allowance” (if rebates are less than written-down value) under Section 20 of the Singapore Income Tax Act. Individual car owners: PARF and COE rebates are not subject to Singapore income tax. Companies: consult a qualified Singapore tax professional (SIATP-registered) to understand the capital allowance implications when deregistering a company vehicle that was previously subject to capital allowance claims.

PARF and COE rebates received upon deregistration in Singapore are paid as cash (via cheque or bank transfer). They cannot be directly “applied” to a new car purchase in the sense of an automatic offset — you receive the cash and then use it however you choose, including as part of the down payment for a new car. Practical usage: the cash from PARF+COE rebates is commonly used as part of the down payment on the next car purchase; it reduces the amount you need to pay as the down payment (which must be from cash — CPF cannot be used); the net deregistration proceeds (PARF + COE − HP settlement) effectively become your equity to roll into the next car. Important: there is no “trade-in” system in Singapore where a dealer takes your old car and credits the value against a new car in the same transaction (unlike in many other countries). In Singapore: you deregister the old car, receive the rebates, then use that cash as part of payment for the new car’s down payment. Some dealers may facilitate the deregistration and new purchase simultaneously but the cash flow is separate.

Exporting a Singapore car (rather than domestic scrapping) follows the same deregistration process for PARF and COE rebates — the LTA rebates are identical whether the car is exported or scrapped. The additional benefit of export: the physical car is sold to an overseas buyer (typically via a car exporting agent); you may receive an additional “export value” payment from the buyer for the car’s physical value; this is in addition to the LTA PARF+COE rebates. Export value: for cars in reasonable condition that are desirable in overseas markets (Japan, UK, New Zealand, developing markets), export prices can be significantly higher than pure scrap metal value; typical Singapore-to-overseas export markets include Japan, New Zealand, Australia, UK, and various emerging markets; export prices depend on the car model, condition, and overseas demand. For this calculator: the net deregistration position (PARF + COE − settlement) is the same regardless of scrapping or exporting. If exporting, add the export buyer’s payment to the net position for total proceeds. Export is almost always financially superior to domestic scrapping for cars in good mechanical condition — get quotes from 2–3 export agents before deciding.

The Rule of 78 HP settlement and PARF rebate interact in a time-sensitive way that creates optimal windows for deregistration. As the car ages: HP settlement amount decreases over time (as more instalments are paid); PARF rebate also decreases as the car ages (75% at 0–1yr → 30% at 9–10yr → 0% at 10+yr); COE rebate also decreases as remaining months diminish. Net position over time: in the early years of a loan on a car with high COE premium, net is often positive (COE rebate dominates); as the car ages, PARF drops, HP settlement drops, and COE rebate drops simultaneously; around years 5–8, the balance depends heavily on the original figures; at year 10, PARF cliff means zero PARF — only COE rebate remains. Optimal strategy: use this calculator at multiple age checkpoints (e.g., current, +1yr, +2yr, +3yr) to see how the net position changes; plot when the net position is maximised; if approaching the 10-year PARF cliff, calculate the PARF loss from waiting — deregistering before year 10 can be worth thousands of Singapore dollars in PARF rebate that would otherwise be forfeited. The Rule of 78 means settling the loan early costs more in the early years, but the PARF floor value may more than compensate in the first 5–7 years.

Singapore car deregistration documents required: vehicle owner’s identification (NRIC for Singapore citizen/PR, passport for foreigner); original vehicle log card (blue document); HP settlement letter from finance company (if HP outstanding) — showing settlement amount and validity date; valid insurance certificate (may be required for deregistration centre entry); latest road tax payment receipt (to confirm road tax is current); HPB clearance letter (if any outstanding offences or fines — check LTA OneMotoring). Optional but useful: original purchase invoice (for ARF confirmation); COE bid confirmation letter (for COE premium verification). Process: most Singapore car owners go through a licensed car dealer or deregistration agent who handles all paperwork — fee typically S$200–S$500 for the service; you can also deregister directly at LTA-authorised deregistration centres (VICOM, STA); the deregistration agent coordinates with HP lender, LTA, and scrap/export facility; entire process takes 1–3 business days. After deregistration: PARF and COE rebate cheque or PayNow transfer typically received within 3–5 business days after LTA processes the deregistration. For cars with outstanding HP, the finance company receives the settlement amount directly from LTA before any surplus is paid to you.