LTA PARF Revision 2026 Singapore
How the New Rebate Changes Affect Used Car Buyers & Sellers
From 13 February 2026, the Land Transport Authority (LTA) has revised the PARF (Preferential Additional Registration Fee) rebate schedule and reduced the rebate cap for newly registered cars in Singapore. Under the new rules, PARF rebates are significantly lower for cars registered from this date onward, while vehicles registered before 13 February 2026 continue under the earlier, higher PARF structure.
Key Changes after Budget 2026
- PARF rebate percentages reduced (previously up to 75% of ARF, now up to 30% of ARF for the youngest band)
- PARF rebate cap reduced from $60,000 to $30,000
- Applies to cars registered on or after 13 February 2026 onward (based on COEs obtained from the second bidding exercise in February 2026), and certain other categories registered on or after 13 February 2026
PARF Rebate Comparison on or after 13 February 2026
| Age at Deregistration | Old PARF (Before 13 Feb 2026) | New PARF (From 13 Feb 2026) |
|---|---|---|
| Not more than 5 years | 75% of ARF paid | 30% of ARF paid |
| Above 5 to 6 years | 70% of ARF paid | 25% of ARF paid |
| Above 6 to 7 years | 65% of ARF paid | 20% of ARF paid |
| Above 7 to 8 years | 60% of ARF paid | 15% of ARF paid |
| Above 8 to 9 years | 55% of ARF paid | 10% of ARF paid |
| Above 9 to 10 years | 50% of ARF paid | 5% of ARF paid |
| More than 10 years | Nil | Nil |
| PARF Rebate Cap | $60,000 | $30,000 |
Key Impacts
- Pre-2026 cars become more attractive due to higher PARF rebates
- New cars may depreciate faster with reduced paper value protection
- Potential increase in demand for used cars
- Pre-2026 registration can be a selling point for sellers
For Buyers
1) Pre-2026 Cars Become More Attractive
Cars registered before 13 February 2026 remain on the earlier PARF schedule, which typically provides a higher rebate if the car is deregistered before 10 years old. This can make many used cars more appealing compared to newly registered cars under the revised PARF scheme, especially for buyers who care about exit value and depreciation protection.
2) New Cars May Depreciate Faster
With lower PARF rebates, the “paper value” safety net on newly registered cars is reduced. This can increase effective depreciation for newer registrations, which may push more value-conscious buyers toward used cars (particularly in the 1–5 year range).
For Sellers
1) Potential Increase in Demand for Used Cars
As new cars become less financially protected through PARF, some buyers may be more inclined to purchase a used car instead. This can support demand for well-priced, well-maintained used vehicles.
2) Pre-2026 Registration Can Be a Selling Point
If your car was registered before 13 February 2026, it may have a relative advantage because it retains the earlier PARF structure. For informed buyers, this can be a meaningful factor in evaluating overall value and resale strength.
Bottom Line
The PARF revision reduces incentives for early deregistration and lowers rebate support for newly registered cars. As a result, used cars—especially those registered before 13 February 2026—may become relatively more attractive to buyers, and sellers may see stronger interest in well-positioned units.
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