Car Depreciation Calculator (2026)
Calculate your car's depreciation based on purchase price, PARF value, and COE remaining.
What is a Car Depreciation Calculator?
A car depreciation calculator estimates how much value your vehicle loses each year in Singapore. Depreciation is calculated as (Purchase Price - PARF Rebate) divided by the number of COE years remaining. It is the single largest cost of car ownership, typically accounting for 40-50% of total expenses.
Enter your car details to see depreciation and current estimated value
Annual Dep.
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Current Value
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COE Left
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Quick Reference
- • COE cycle: 10 years from registration date
- • PARF rebate: 75% of ARF (within 5 years), decreasing to 50% (at 10 years)
- • No PARF rebate after 10 years — major value cliff
- • First 3 years typically see the steepest depreciation
- • Lower annual depreciation = better value when comparing cars
How Car Depreciation Works in Singapore
Depreciation is the single largest cost of car ownership in Singapore. It's calculated as (Purchase Price - PARF Rebate) / COE Years. This gives you the annual depreciation, which is the amount your car loses in value each year.
The PARF rebate is based on the Additional Registration Fee (ARF) you paid when registering the vehicle. If you deregister within 10 years, you receive a percentage of the ARF back — starting at 75% within the first 5 years and declining to 50% by year 10.
Depreciation is the key metric for comparing car value in Singapore. A car costing $150,000 with $15,000 annual depreciation is actually cheaper to own than a $100,000 car with $12,000 annual depreciation if you factor in the total ownership period.
Depreciation Formula
(Purchase Price - PARF Rebate) / COE Years
The key metric for car value comparison
PARF Rebate
75% of ARF (within 5 years) to 50% (at 10 years)
No PARF rebate after 10 years
Smart Buying Tip
Lower annual depreciation = better value
Compare $/year, not just sticker price
Frequently Asked Questions
How is car depreciation calculated in Singapore?expand_more
Car depreciation in Singapore is calculated as: (Purchase Price - PARF Rebate) / Number of COE Years. The PARF (Preferential Additional Registration Fee) rebate is the portion of your ARF that you get back when you deregister the vehicle within 10 years. This formula gives you the annual depreciation, which is the key metric savvy car buyers use to compare vehicles.
What is the PARF rebate and how does it work?expand_more
The PARF rebate is a refund of a portion of the Additional Registration Fee (ARF) you paid when registering the vehicle. If you deregister within 10 years, you receive a PARF rebate based on the vehicle's age: 75% of ARF if deregistered within 5 years, 70% within 6 years, 65% within 7 years, 60% within 8 years, 55% within 9 years, and 50% within 10 years. After 10 years, no PARF rebate is given.
When is the best time to sell a car to minimise depreciation?expand_more
In Singapore, the general wisdom is to sell before the 10-year COE expiry mark because you lose the PARF rebate entirely after that. Many owners sell at the 5-7 year mark for the best balance of depreciation and usage. Cars with lower annual depreciation are generally better value. The first 3 years tend to have the steepest depreciation.
What is the difference between depreciation and residual value?expand_more
Depreciation is the amount your car loses in value each year — it's a cost. Residual value is what your car is still worth at a given point in time. In Singapore, a car's residual value is largely determined by the remaining COE period and PARF rebate eligibility. A car with 5 years of COE left will have a higher residual value than one with 2 years left.
Sources
- • Land Transport Authority (lta.gov.sg) — PARF rebate schedule and COE renewal policies
- • OneMotoring (onemotoring.lta.gov.sg) — ARF rates and vehicle deregistration procedures