Part 2 - Types of pre-owned cars

Story by Ming Jie
21 Apr 2010
 

Everything you need to know about buying a pre-owned car explained.

Part 2 - Types of pre-owned cars

Which category your desired pre-owned car falls under will greatly affect your budget considerations.

PARF vs COE
The Pre-owned car market is typically broken down into two major categories. They are the "PARF cars" and "COE cars". Which category your desired pre-owned car falls under will greatly affect your budget considerations. We break down this two terms and explain in detail what they mean.

PARF Cars
If you do not know by now, a COE or Certificate Of Entitlement is valid for only 10 years. This means it allows you to own a car for 10 years before the COE expires, in which case you can either choose to de-register your car or renew your COE.

However, if you were to decide to de-register your car earlier than 10 years, that means taking your car off the road earlier than intended, you will be entitled to a rebate. (Yes, the government is giving you money back for scrapping your car early) Do note that this is valid only for first-time registered cars. It is not valid for cars with renewed COE.

The term for the rebate is called the "Preferential Additional Registration Fee", or "PARF" in short. This rebate is to keep the car population in Singapore young.

In essence, this means that ANY car on sale in the pre-owned market that is first registered less than 10 years ago from now is still entitled to this rebate. Thus, we call these cars "PARF" cars.

When determining the value of a pre-owned car or to calculate the depreciation of a car, the PARF rebate amount is a significant factor in the equation. Go to "Determining The Value Of A Pre-Owned Car" to find out how to calculate a vehicle's PARF value.


COE Cars
The PARF benefit is not the only rebate you will get when you scrap your car earlier than intended. You get a rebate on your COE as well. (More money!)

COE rebate is quite simply a refund. The amount you pay for your COE entitles you to use your car on the road for 10 years. In the case when you decide to de-register the car earlier than 10 years, you will receive a refund for the remaining months that your COE is not use.

Unlike the PARF benefit, COE rebate is given regardless of how many times the car has it's COE renewed. For example a 15-year-old car would have had it's COE renewed on its tenth year. Given that the COE is renewed for another 10 years, scrapping the car will only return a 5-year COE rebate. There will be no PARF benefits. Go to "Determining The Value Of A Pre-Owned Car" to find out more about the COE rebate.

"COE car" is thus the term given for any car with its COE already renewed.

 


Know how much your Car is worth now!
Allow us to help with the valuation of your car, with our extensive network of dealers! This service is absolutely Free!

KNOW YOUR CAR

Best offer with no obligations.
Start Now!

Excellent service provided by Justin. I\\\'m served by an honest dealer. Will definitely recommend Oneshift.com to my friends!

Dragon Gail Anne - 13 hours ago

Everything was done in a short time. Dealer contacted me in no time, fuss free transaction indeed!

Azhar - 1 day ago

Fast response received from dealer. Was scheduled with an experienced scrap dealer. All arrangement was finalised with no hiccups.

Daphne - 2 days ago

Engagement with dealer was smooth and process to scrap my car was explained in detail. Website is user friendly.

Ong Swee San - 2 days ago

Engaged by the dealer almost right away after being notified of the quote for my car. Speedy replies and transaction.

Linda Na - 3 days ago

Justin has been very friendly and helpful. His great service in accommodating the transaction for both me and the dealer went smooth and fast for me.

Aaron Chew Khee Chye - 3 days ago

Thanks for reaching out to me promptly, a super smooth transaction carried out by both the dealer and your company. Fast deal.

Chew - 4 days ago

Totally didnt expect such excellence service from Oneshift. For a first timer like me, I was guided by Oneshift from quotation till I let go of my car.

Yin Qiang - 5 days ago

Hit my target price, saved my hassle of going down to dealers to quote, everything was very smooth, transaction got done real quick. Thumbs up for the job done!

WANG YEE CHONG - 6 days ago

Smooth service provided by Justin on assisting me the process of scrapping of my car. Kudos to him on the great work!

Subramaniam - 6 days ago