As soon as you buy a car in Singapore, its value depreciates the moment you drive it out of the showroom.
Car values can drastically change over time, especially with the high prices of Certificate of Entitlement (COE) in Singapore. Knowing your car’s worth is essential for many reasons like getting an accurate quote for car insurance and when you are selling your vehicle.
So how are used car value being determined and how to be sure that you are getting a good deal when you are selling your car?
Let’s take a look at what goes into calculating the value of a car in this article to find out.
Table of Contents
What factors go into calculating the value of a car?
When it comes to car valuation, the OMV, ARF, and COE are all important considerations. The overall condition of the vehicle, its overall mileage, and other details can also affect its market value.
It is important to be mindful that car values are simply guides and they may not be reflective of what you can expect when selling your car to an individual or dealer.
This is because car dealers will typically need make a profit after factoring costs to service or repair the car, resell the car, and complete the necessary paperwork which can lower their purchase offer for your car compared to its given valuation.
Open Market Value (OMV) factor
The Open Market Value (OMV) of a car is the cost that Singapore Customs assigns to it upon its arrival into the country.
This value usually comprises of the car’s original price, freight costs, insurance and any other related costs associated with the sales and the delivery of the car to Singapore.
The OMV is the initial cost of a vehicle and acts as an important factor in determining its current valuation.
When buying a car, you should calculate its OMV in order to estimate the upfront cost – including any Additional Registration Fees (ARF) that may be due – before purchase.
As a reference, you can find out the average OMVs of commonly-registered car models in Singapore here.
Additional Registration Fee (ARF) factor
ARF is a form of tax imposed when you register a motor vehicle in Singapore. This fee is determined by calculating a percentage of the Open Market Value (OMV) chargeable on your particular vehicle.
Here’s how ARF is calculated:
| Vehicle Open Market Value (OMV) | ARF Rate (% of OMV to pay) |
| First $20,000 | 100% |
| Next $30,000 (i.e. $20,001 to $50,000) | 140% |
| Above $50,000 (i.e. $50,001 and above) | 180% |
| Above $80,000 (i.e. $80,001 and above) | 220% |
(For Cars registered with COEs obtained before the second COE bidding exercise in February 2023, or Cars that do not need to bid for COEs registered before 15 February 2023)
| Vehicle Open Market Value (OMV) | ARF Rate (% of OMV to pay) |
| First $20,000 | 100% |
| Next $20,000 (i.e. $20,001 to $40,000) | 140% |
| Next $20,000 (i.e. $40,001 to $60,000) | 190% |
| Next $20,000 (i.e. $60,001 to $80,000) | 250% |
| Above $80,000 (i.e. $80,001 and above) | 320% |
(For Cars registered with COEs obtained from the second COE bidding exercise in February 2023 onwards, or Cars that do not need to bid for COEs registered on or after 15 February 2023)
This means that a A180 COMPACT SALOON PROGRESSIVE PETROL–1332cc with OMV of S$31,599 would be S$20,000 + S$16,238.60 = S$36,238.60
Excise Duty factor
There will be a 20% of the OMV tax that is imposed on the vehicle by Singapore Customs that is imported into Singapore. On top of the excise duty, remember there is also a GST (Goods and Service Tax) of 8% imposed on your vehicle.
Certification of Entitlement (COE) factor
A COE allows you the right to own and use a vehicle in Singapore. The COE is dependent on the demand for the registration of cars in the market and in the corresponding vehicle category.
As you can only own and drive a car that has a COE, the car valuation is affected by how many remaining years are left in its COE vehicle.
PARF vs COE Cars factor
The car valuation is also determined if the vehicle is a PARF cars (First 10-year depreciation period) or cars with renewed 5-year or 10-year COE.
A PARF car valuation is generally higher as it includes the Preferential Additional Registration Fee (PARF) rebate and COE rebates which are both a percentage of the ARF paid on purchase.
Determine the PARF & COE Rebate
For cars that are deregistered not more than 10 years of use in Singapore, you can receive a Preferential Additional Registration Fee (PARF) from the Land Transport Authority.
The younger you deregister your car, the more PARF rebate you will enjoy. ARF payable cars are subject to a PARF rebate cap of $60,000.
| Age at deregistration | PARF rebate |
|---|---|
| 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 |
For vehicles with tax incentives such as the Green Vehicle rebate, Off-Peak Car (OPC) rebate or Carbon Emission-based Vehicle Scheme (CEVS)/Vehicle Emission Scheme (VES) rebate, the PARF rebate will be calculated based on the net ARF you paid for the vehicle.
Likewise for COE rebate, it is granted if you deregister your vehicle before its COE expires. The earlier you deregister your vehicle, the more COE rebate you will enjoy.
How COE rebate is calculated: COE rebate = QP or PQP of 10-year COE paid x Total unused period of COE/120 months
For your convenience, you can enquire the PARF/COE Rebate for your vehicle here.
Car Conditions factor
Car dealers often assess the value of a car based on factors like its mileage and condition. For an more in depth idea of what you can expect, take a look at our car valuation table for a breakdown of general values calculated by dealers.
| Car Value Determining Factor | Reduction of Car Valuation Price (SGD) |
|---|---|
| Minor dents | $50 per dent |
| Paint scratches | $200 – $300 per panel |
| Foggy headlights | $250 – $400 for each headlight cover |
| Rusts and stains | $500 – $800 for each affected area |
| Accident(s) | $2,000 upwards |
| Exterior modifications | $500 – $2,000 |
| Interior modifications | Increase in valuation |
| Cleanliness | $800 – $1,200 |
| No spare key | $400 – few thousands dollars depending on car brand |
| No or poor service records | $500 – $1,000 |
| Brake pads | $200 – $300 |
| Tires | $150 – $550 per tyre |
| Faulty accessories (such as air-con) | $400 – $800 |
| Engine noise | $500 – $4,000 |
| Vehicle color | $800 – $2,000 |
| Number of owner | $800 for every extra owner |
| Make and model | French, Chinese and Malaysian car brands have lower resale value |
| Mileage (As an average of 20,000km per year) | $2000 – $2500 |
Why it’s important to get a car valuation before selling your car
Car valuation is the process of determining how much money a vehicle is worth today. It’s an important tool to help car owners know what they should be asking for when selling their vehicle in order to make sure they’re getting a fair deal.
Knowing the true worth of your car can also protect you from being taken advantage of by unethical dealers who may try to offer too low a price for the car.
After you have get a free valuation for your car, you can make a more conscious decision to sell or scrap your vehicle.
Trying to figure out how much your car is worth?
So now we hope you have a better understanding and idea on how the valuation of your car is being calculated.
And if you are intending to sell your car before buying a new car, you can find out the current value of your car easily at Carsnap. Carsnap offers a 100% non-obligatory free car valuation for your car as fast as within 24 hours.
From there, you can then get a better guide to price your car and decide how you want to sell your car, whether to sell it to a car dealer, a direct buyer, or consigning your car.
How to calculate the value of your car in Singapore?
Step 1: Know the OMV (Open Market Value)
Step 2: Determine the RF (Registration Fe) and ARF (Additional Registration Fee)
Step 3: Determine the PARF
Step 4: Put all of them together: Annual Depreciation = (Total Cost of Vehicle – Sale Value of Vehicle) / Number of Years in Service
How accurate is your car valuation?
To get an accurate valuation for your car, it’s important to consider various factors, such as the make and model, the registration date, mileage, any previous accidents, and faulty parts. To ensure an accurate car valuation, please provide us with detailed information about your car’s condition so we can make the most accurate assessment possible.
What is paper value of Singapore car?
Paper Value is the financial value assigned to a car at the time of its deregistration. This value is made up of two components: the Scrap Value, which includes both the deregistration value (received from LTA) and the body value; and Deregistration Value, which is comprised of a PARF rebate and a CEO rebate.
How to I get a free car valuation in Singapore?
You can get a free car valuation to find out how much your car is worth today. Simply submit your car details and Carsnap will help you obtain the highest and most accurate valuation of your car.
How do you calculate if a car is worth selling?
Before selling a car, it’s important to determine its value. One way to do this is by using a free valuation service like Carsnap. By knowing the car’s worth, you can make informed decisions when it comes to selling, trading in, buying, or refinancing the vehicle.
What is the best website to calculate car value?
With partnerships with hundreds of trusted and reliable car dealers, Carsnap can provide you with a free car valuation within 24 hours, with no obligation to sell. Simply submit your car details and get an accurate estimate of your car’s value. Trust Carsnap to help you get the best value for your vehicle.
