How to Calculate ARF?

How to Calculate ARF?

Be clear on what you are paying for and find out how to calculate ARF (Additional Registration Fee).

Be sure to understand what you are paying for a new car, like how to calculate ARF (Additional Registration Fee), just like how you should know your directions while driving to reach the destination.

What is ARF (Additional Registration Fee)?

ARF is a tax imposed on registration of vehicles in Singapore and can make up a relatively large portion of the price you pay for the vehicle, so it is important that you know how to calculate the ARF. How much one needs to pay for the ARF depends upon the OMV of the vehicle, which is the price to be paid when a vehicle is imported into Singapore.

 

How to Calculate ARF?

The ARF for your car will be derived from the prevailing ARF rates as well as its OMV. For cars registered with COEs obtained from March 2013 tender exercises and onwards, the ARF rates are as follows.

Vehicle OMVARF Rates
First S$20,000100%
Next S$30,000140%
Above S$50,000180%

(Data taken from https://www.lta.gov.sg/content/ltaweb/en/roads-and-motoring/owning-a-vehicle/costs-of-owning-a-vehicle/tax-structure-for-cars.html as of 29 March 2019 and is valid for cars registered with COEs obtained from March 2013 tender exercises and onwards.)

 

Therefore, if you own a vehicle with its COE obtained from March 2013 tender exercises and onwards or are looking to buy a new vehicle, the ARF would be computed as such:

Vehicle OMVARF RatesExample 1 –
If you are intending to buy a vehicle with OMV of $19,000
Example 2 –
If you are intending to buy a vehicle with OMV of $80,000
First S$20,000100%100% x $19,000 = $19,000100% x $20,000 = $20,000
Next S$30,000140%140% x $30,000 = $42,000
Above S$50,000180%180% x $30,000 = $54,000
Total ARF Payable:$19,000$20,000 + $42,000 + $54,000 = $116,000

 

Learn how to calculate ARF (Additional Registration Fee) now.

Have a clear idea on how to calculate ARF (Additional Registration Fee) and make the car buying process an easy one.

VES (Vehicle Emission Scheme)

After getting a better idea on how the ARF is calculated, we now look into VES which would determine your Final ARF. VES is to get people to opt to buy cleaner cars that emits less pollutants. Depending on the car model and its specifications you are choosing to go for, you may be able to get VES rebates to offset your ARF. The VES rebates or surcharges are as follows.

VES BandAmountVES Rebate/ VES Surcharge
A1$20,000Rebate
A2$10,000Rebate
B$0Neutral
C1$10,000Surcharge
C2$20,000Surcharge

(Data taken from https://www.lta.gov.sg/content/ltaweb/en/roads-and-motoring/owning-a-vehicle/costs-of-owning-a-vehicle/tax-structure-for-cars.html as of 29 March 2019 and is valid for cars registered from 1 January 2018 to 31 December 2019)

 

MHG Cars retail a wide variety of VES rebates cars. Take your pick among the following car models that can help you save as much as possible on your ARF!

MHG CarsVES BandVES Rebate Amount
Honda Fit 1.3GFA2$10,000 VES Rebate
Honda Fit 1.5 HybridA2$10,000 VES Rebate
Honda Freed 1.5G HybridA2$10,000 VES Rebate
Honda Shuttle 1.5GA2$10,000 VES Rebate
Honda Shuttle 1.5 HybridA2$10,000 VES Rebate
Honda Vezel 1.5XA2$10,000 VES Rebate
Honda Vezel Hybrid 1.5XA2$10,000 VES Rebate
Honda Grace DX HybridA2$10,000 VES Rebate
Toyota CHR 1.8SA2$10,000 VES Rebate
Toyota Camry 2.5GA2$10,000 VES Rebate
Toyota Noah 1.8X HybridA2$10,000 VES Rebate

 

Check out our JDM Collection to find out more!

 

PARF (Preferential Additional Registration Fee) Rebate for your vehicle

If you decide to de-register your vehicle before its COE of 10 years is up, you may be able to get back rebates which is dependent on the ARF. How much you may get back depends on the age of your car at de-registration and the net amount you have paid for ARF after discounting any Green Vehicle rebate, Off-Peak Car (OPC) rebate or Carbon Emission-based Vehicle Scheme (CEVS)/Vehicle Emission Scheme (VES) rebates. You may click here to check out the eligibility criteria to enjoy the PARF rebate.

Age of Car at De-RegistrationPARF Rebates
Not exceeding 5 years75% of ARF paid
Above 5 years but not exceeding 6 years70% of ARF paid
Above 6 years but not exceeding 7 years65% of ARF paid
Above 7 years but not exceeding 8 years60% of ARF paid
Above 8 years but not exceeding 9 years55% of ARF paid
Above 9 years but not exceeding 10 years50% of ARF paid
Above 10 yearsNIL

(Data taken from https://www.lta.gov.sg/content/ltaweb/en/roads-and-motoring/owning-a-vehicle/costs-of-owning-a-vehicle/tax-structure-for-cars.html as of 29 March 2019 and is valid for cars registered with COE obtained from May 2002 tender exercise and onwards.)

 

For example, if you plan to de-register your car when it is above 6 years but not exceeding 7 years, you may get back 65% of the ARF that you paid. Assuming you paid $19,000 for ARF after all rebates, you may get back up to $12,350 upon de-registering.

An extra tip: If you choose to renew the COE for your car and not de-register it, the PARF rebates will be fully forfeited. Therefore, if your ARF and PARF are of considerable amounts, it may be worthwhile to de-register your car and get a new one.

 

MHG Cars offers the best deals for new cars. Browse our JDM Collection and be sure to like and follow us on Facebook for the best deals.

Apart from the OMV and ARF, there are various costs that goes into the car price and many other things that you should be aware of when you are thinking of owning a new car in Singapore. You can make the process less complicated by checking out our articles on How to Get the Best Deal on a New Car and Parallel Importers and Authorised Car Dealers – What are the Pros and Cons. MHG Cars would be sharing more tips moving forward so be sure to like and follow us on Facebook so that you will be informed when our next article is up. If you like this article, make sure to Share this Post on Facebook too!

You now know how to calculate ARF and PARF rebates. Make sure to like and follow us on Facebook so that you know when the next articles are out.

Now that you know how to calculate ARF and PARF rebates, you are now one step closer to driving away with a new car! Make sure to like and follow us on Facebook so that you know when the next articles are out.