Looking to buy a second-hand car? Do you know that other than looking at the colour, make, and model – you’ll need to decide whether you want a PARF car or COE car?
Do you know what is the difference between a 𝐏𝐀𝐑𝐅 and 𝐂𝐎𝐄 𝐂𝐚𝐫?
What Is A PARF Car and A COE Car?
A PARF car is less than 10 years old and you’re able to get back at least 50% of the ARF value when you scrap your car before your car hits the 10th year.
A COE car is a car that has already been through one round of COE and had renewed its COE (5 years or 10 years). This kind of car might be cheaper to buy but you will not get back any of the ARF value when you scrap your car and will only get back the unused portion of your COE back.
Difference Between A PARF Car and A COE Car
The price of used cars can greatly differ from each other due to the rebates that come with de-registering it – the Preferential Additional Registration Fee (PARF) and Certificate of Entitlement (COE) rebates.
Hence, COE cars are the cheapest used cars you can buy in the market because you’ll only get the COE rebate when de-registering. Whereas for PARF cars, they are more costly because when you de-registration, you get both the PARF and COE rebates.
COE may seems cheaper when you first buy it, but please be prepared to pay higher repair and maintenance costs if you get COE cars as compare to the newer PARF cars. In addition, you will need to pay higher road tax for COE cars.
Choosing between a PARF car and a COE car is not only a matter of budget, but of knowing the difference between the both and see which will fit into your budget better.
So, which kind of car do you prefer? 
Contact us to find out more about the difference between getting a PARF car and COE car!
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