Enter 0 if the car has no PARF benefit, such as a car with renewed COE. Use the applicable LTA PARF rules for the vehicle.
This estimates annual depreciation to the end of the current COE period. Car body/resale value at deregistration is not included.
Disclaimer: Estimate only; actual resale value, PARF/COE rebates, vehicle condition and market prices can change the real depreciation.
What Is Car Depreciation in Singapore?
Car depreciation is the estimated reduction in a vehicle’s value over time.
In Singapore, a car’s purchase price can include the vehicle cost, COE and registration-related charges. Its future value may be affected by its age, remaining COE, condition, market demand and applicable rebates.
This Car Depreciation Calculator Singapore estimates how much of the entered purchase or asking price is used up each year and month until the current COE expires.
It does not calculate the car’s current resale value. For that purpose, compare similar market listings or use the Car Valuation Calculator Singapore.
How to Use the Car Depreciation Calculator
Enter the car’s purchase price or current asking price.
Next, enter the estimated PARF rebate available at the end of the current COE period. Use zero if the vehicle will not qualify for a PARF rebate, such as a car with a renewed COE.
Finally, enter the number of years remaining on the current COE and select Calculate.
The calculator displays:
- estimated depreciable amount;
- estimated annual depreciation; and
- estimated monthly depreciation.
Check the entered figures carefully. An incorrect PARF estimate or remaining COE period can significantly change the result.
Car Depreciation Formula Used
The calculator uses these formulas:
Estimated depreciable amount = Purchase or asking price − Estimated PARF rebate at the end of COE
Annual depreciation = Estimated depreciable amount ÷ Remaining COE period
Monthly depreciation = Annual depreciation ÷ 12
This method estimates depreciation until the current COE expires. It does not include an assumed car-body or resale value at deregistration.
Car Depreciation Calculation Example
Suppose a car has the following details:
- purchase or asking price: S$120,000;
- estimated PARF rebate: S$15,000; and
- remaining COE period: 6.5 years.
The estimated depreciable amount is:
S$120,000 − S$15,000 = S$105,000
The estimated annual depreciation is:
S$105,000 ÷ 6.5 = S$16,153.85
The estimated monthly depreciation is:
S$16,153.85 ÷ 12 = S$1,346.15
The result is an estimate. The actual financial loss may differ if the car is sold or deregistered earlier.
Understanding PARF and COE Rebates
PARF is a possible deregistration rebate, not an additional ownership cost.
Eligibility and the rebate amount depend on factors such as the vehicle’s registration details, age at deregistration and ARF paid. A car with a renewed COE generally does not have a PARF benefit.
A COE rebate may apply when a vehicle is deregistered before its COE expires. It is generally based on the applicable QP or PQP and the unused COE period.
Because this calculator estimates depreciation to the end of the current COE, it asks for an end-of-COE PARF estimate and does not add an early-deregistration COE rebate.
Review the official LTA PARF and COE rebate rules before entering the rebate amount.
What the Estimate Does Not Include
The displayed depreciation is not the complete cost of owning a car.
It does not include:
- loan interest;
- insurance premiums;
- road tax;
- fuel or charging costs;
- servicing and repairs;
- parking charges;
- ERP charges; or
- an assumed body or export value.
If the vehicle is financed, use the Car Loan Calculator Singapore to review the possible repayment separately.
Insurance is another recurring expense. The Car Insurance Calculator Singapore can help you prepare a separate premium estimate.
Why Actual Car Depreciation Can Differ
A calculator provides a planning estimate based on the figures entered. The real financial outcome may be different because of:
- changes in used-car demand;
- vehicle condition and accident history;
- mileage and service records;
- the remaining COE at the time of sale;
- model popularity;
- dealer margins;
- actual PARF or COE rebates; and
- the final selling or deregistration value.
Regular servicing and complete records may make a car more attractive to buyers. However, they cannot guarantee a particular resale value or depreciation rate.
Compare Car Ownership With Other Options
Annual depreciation is useful when comparing cars, but it should not be considered alone.
Include financing, insurance, tax, maintenance and daily travel costs before deciding whether a vehicle fits your budget.
If you are comparing car ownership with buses and trains, the Singapore Transport Fare Calculator can provide a separate public transport fare estimate.
For a vehicle brought into Singapore from overseas, review possible registration and import-related costs with the Singapore Car Import Tax Calculator.
More car, transport and finance tools are available through the Calculator Singapores homepage.
Frequently Asked Questions
Q1: What does the Car Depreciation Calculator Singapore calculate?
A: It estimates the depreciable amount and the average annual and monthly depreciation until the current COE expires.
Q2: Does the calculator show my car’s current market value?
A: No. Current market value requires recent prices for comparable vehicles with similar age, model, mileage, COE balance and condition.
Q3: What PARF amount should I enter?
A: Enter the estimated PARF rebate expected at the end of the current COE. Check the vehicle’s official details and current LTA rules instead of guessing.
Q4: What should I enter for a car with renewed COE?
A: Enter zero for the PARF rebate if the vehicle no longer has a PARF benefit. Enter the remaining period of its current renewed COE.
Q5: Does the result include a COE rebate?
A: No. The calculator estimates depreciation to the end of the current COE. A COE rebate may apply if the vehicle is deregistered earlier, subject to LTA rules.
Q6: Is lower annual depreciation always the better choice?
A: Not necessarily. Also consider reliability, loan interest, insurance, road tax, maintenance and how long you intend to keep the vehicle.
Q7: Is the calculated depreciation guaranteed?
A: No. It is an estimate based on the entered figures. Actual depreciation depends on the final selling or deregistration value and market conditions.