Car Import Guide

Depreciation and PARF Rebates for Imported Cars

Published: 31 Aug 2026

Most discussions about importing a car focus on the purchase and registration costs. But if you plan to keep the car for several years and eventually sell it, depreciation becomes just as important a part of the total cost of ownership.

This guide explains how depreciation works for imported cars in Singapore, what drives it, and how PARF rebates and COE renewal decisions fit into the picture.

How Depreciation Works in Singapore

A large share of a car’s value in Singapore is tied to its COE and the taxes paid at registration. As the COE approaches expiry, the car’s market value increasingly reflects its deregistration-related values rather than the price of comparable cars on the road. This applies to imported and locally bought cars alike.

For imported cars, the specification, parts support and buyer demand for that particular model add another layer on top of these mechanics.

What Drives Depreciation for Imported Cars

COE Remaining

A large part of a Singapore car's value is tied to its COE. As the COE approaches expiry, the vehicle's value moves towards its deregistration and PARF-related values rather than what similar cars fetched when COE premiums were high.

OMV and ARF

Because ARF is calculated from the vehicle's OMV, higher-OMV vehicles carry a larger ARF component. This affects both the upfront cost and the potential PARF rebate at deregistration.

Age of the Vehicle

Older used imports lose value more slowly in absolute terms because there is simply less value left to lose. However, they may also have a shorter remaining usable lifespan.

Make, Model and Parts Support

Models with strong dealer support and readily available parts in Singapore tend to hold value better than rare or unsupported models, even when they were cheaper to import.

Specification Differences

Imported vehicles can have different specifications from their locally sold equivalents. Unusual specifications may appeal to some buyers but narrow the pool of prospective buyers later.

Condition and History

Complete service records, an accident-free history and good condition have the same positive effect on resale value for imports as they do for locally registered cars.

PARF Rebates: The Basics

The PARF (Preferential Additional Registration Fee) rebate is linked to the ARF paid at registration and is generally available when a vehicle is deregistered before a certain age. For imported cars, the ARF is calculated from the assessed OMV, so the potential rebate is directly connected to the taxes paid at import.

The rules around PARF eligibility and rates are set by the authorities and can change, so the applicable figures should always be confirmed against current regulations rather than older articles or forum posts. Our COE and ARF guide for imported cars explains how these taxes are calculated at registration.

COE Renewal vs Deregistration

As the COE nears expiry, owners generally face two paths, each with different financial implications.

Renew the COE

Renewing keeps the car on the road for another cycle but requires paying the prevailing COE quota premium. Whether this makes sense depends on the car’s condition, the current premium, and how long you realistically intend to keep it.

Deregister and Sell

Deregistering releases any applicable PARF and COE rebates. Selling before the COE runs down too far usually achieves a better outcome than holding onto a car with only months of COE remaining.

Work Depreciation into Your Import Budget

A meaningful comparison between importing and buying locally should include expected depreciation over your intended holding period, not just the purchase and registration costs. Estimate the full landed cost first — our guide to understanding import costs can help — then layer on holding costs and expected resale.

Planning to Import a Car?

Start by using our car import calculator to estimate the expected costs. Our consultants can also help you compare the total cost of ownership of an imported vehicle against locally available alternatives.