The Singapore Budget 2026 has introduced significant updates to the Preferential Additional Registration Fee (PARF) rebate structure. These changes represent a major shift in the cost of car ownership and the financial considerations for deregistering your vehicle.
At GW Automotive Group, we want to ensure you have the clearest picture possible to make informed decisions about your next vehicle or your current car’s lifecycle.
Key Changes at a Glance
The updates effectively reduce the “cash back” you receive from the government when you deregister your car before it hits the 10-year mark. Here are the two primary pillars of the update:
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Rebate Percentage Cut: The PARF rebate across all eligible age brackets has been reduced by 45 percentage points.
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Lowered Rebate Cap: The maximum PARF rebate you can receive is now capped at $30,000, down significantly from the previous $60,000.
These changes apply to all cars registered with COEs from the next bidding exercise (starting Feb 16, 2026) onwards.
Comparing the Old vs. New Rates
The table below breaks down exactly how much the rebate percentages have shifted based on the age of the vehicle at the time of deregistration:
| Age of vehicle at deregistration | Current PARF Rebate (% of ARF paid) | Revised PARF Rebate (% of ARF paid) |
| ≤ 5 years | 75% | 30% |
| > 5 but ≤ 6 years | 70% | 25% |
| > 6 but ≤ 7 years | 65% | 20% |
| > 7 but ≤ 8 years | 60% | 15% |
| > 8 but ≤ 9 years | 55% | 10% |
| > 9 but ≤ 10 years | 50% | 5% |
| > 10 years | NIL | NIL |
Spotlight: What This Means for the Toyota Noah Hybrid
For many Singaporean families, the Toyota Noah Hybrid is the go-to MPV. If you’re eyeing a new Noah in the upcoming bidding cycles, these changes will directly impact your long-term costs.
Currently, a Toyota Noah Hybrid might have an ARF (Additional Registration Fee) in the ballpark of $25,000 to $30,000 (depending on the specific trim and OMV).
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Under the OLD rules: If you scrapped your Noah after 10 years, you would have received a 50% rebate of that ARF—roughly $12,500 to $15,000.
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Under the NEW 2026 rules: That same 10th-year rebate drops to just 5%, meaning your “scrap value” at the end of 10 years could plummet to as little as $1,250 to $1,500.
Pro Tip: This massive drop in residual value means your annual depreciation effectively increases. For a family-favorite like the Noah, it’s more important than ever to factor in the total cost over the full 10-year period, rather than just the upfront price.
How GW Automotive Group Can Help
We understand that these policy shifts can be complex. Whether you are looking to trade in your current vehicle before the new rules impact the broader market or you want to find a fuel-efficient model like the Noah to help offset rising ownership costs, our team is here to consult.
