Car depreciation calculator (annual depreciation)
Annual depreciation is how Singapore buyers compare used cars. Enter the price, the PARF or scrap value you expect at the end, and the COE left.
Worked example
A S$120,000 car with 8 years 6 months of COE left and an expected S$15,000 PARF rebate: (120,000 - 15,000) / 8.5 = S$12,352.94 a year, about S$1,029 a month - before road tax, insurance, petrol and parking.
Figures computed with the same formula as the calculator and unit-tested against official examples.
How it works
Car listings in Singapore quote annual depreciation = (price - PARF rebate) / remaining COE years. It is the market's shorthand for what owning the car costs you each year in lost value, because at the end of the COE the car is worth roughly its PARF rebate or scrap/export value.
The PARF rebate depends on the car's ARF and age at deregistration, and was reduced by Budget 2026 (with a lower cap) for newer registrations, so use a realistic figure. For cars past 10 years (COE renewed) there is no PARF rebate; enter the expected scrap or export value instead.
This is a market convention, not an LTA formula: the car's real resale value depends on demand, mileage and condition.
FAQ
What is a good annual depreciation?
It depends on the car class and budget; the useful thing is comparing like-for-like listings. A lower figure means less value lost per year of ownership.
How do I know my car's PARF or scrap value?
Use the free PARF & scrap value calculator linked below, or check the PARF rebate on OneMotoring with your car's details.
Does depreciation include road tax and insurance?
No. Add road tax (see the road tax calculator), insurance, fuel and parking for the full yearly cost.
Sources & rates as of 12 Nov 2026
If an official rate changes, the official page wins. Spotted an outdated figure? This page is reviewed regularly.