Car Depreciation Calculator Singapore: Compare Two Cars
Car A
Kept to COE expiry, PARF is 50% of ARF.
Car B
Kept to COE expiry, PARF is 50% of ARF, capped at S$60,000.
- A
- B
- Price
- S$98,000
- S$125,000
- PARF left at expiry
- S$15,000
- S$20,000
- Value written off
- S$83,000
- S$105,000
- COE left
- 6.25 yrs
- 8.50 yrs
- Per month
- S$1,107
- S$1,029
Depreciation only counts the drop in the car's value. Road tax, insurance, petrol, parking and servicing come on top, and resale prices before COE expiry depend on the market.
Car A depreciation a year
S$13,280
- Car B depreciation a year
- S$12,353
- Car B is cheaper by
- S$927/yr
- Over the shorter COE
- S$5,794
How this works
Used car listings in Singapore quote depreciation per year: annual depreciation = (price − PARF rebate left at COE expiry) ÷ years of COE left. It is the value you write off each year if you keep the car to the end of its COE and then deregister it.
The PARF left at expiry is the last step of LTA's schedule: 50% of the ARF paid for cars registered before 15 February 2023 (no cap), 50% capped at S$60,000 for cars registered from 15 February 2023 to 12 February 2026, and 5% capped at S$30,000 for cars registered with COEs from the second February 2026 bidding onwards. A car with a renewed COE has no PARF, so the whole price is written off.
Lower depreciation means less value lost per year, but compare like with like: it leaves out road tax, insurance, fuel, parking and servicing, and it assumes you keep the car to COE expiry.
FAQs
How is car depreciation calculated in Singapore?
Depreciation per year = (price − PARF at COE expiry) ÷ COE years left. A S$98,000 car with S$30,000 ARF registered before Feb 2023 and 6 years 3 months of COE left depreciates S$13,280 a year: (S$98,000 − S$15,000) ÷ 6.25.
What is a good depreciation for a used car?
There is no fixed number: it depends on the model and COE prices. Compare cars of the same class and age on this figure. In the default comparison here, a S$125,000 car with 8.5 years left depreciates S$12,353 a year, less than the cheaper S$98,000 car.
Why do cars registered after February 2026 depreciate more?
Their PARF rebate at COE expiry is only 5% of ARF (capped at S$30,000) instead of 50%, so almost the whole price is written off. A S$150,000 car with S$40,000 ARF and 9 years left loses S$16,444 a year.
Does depreciation include the COE?
Yes. The COE is part of the price, and it is worth nothing at expiry, so it is written off over the COE years left along with the rest of the car's value.