In Budget 2026, the Singapore Government made a significant shift to the Preferential Additional Registration Fee (PARF) rebate, a long-standing incentive tied to vehicle deregistration and depreciation. These changes will take effect from the second Certificate of Entitlement (COE) bidding exercise in February 2026, which means cars registered after 13th February 2026 will be affected by the reduced rebates. As a result, this is reshaping how Singaporeans think about car ownership, used car values, and depreciation.
Whether you’re researching PARF rebate Singapore, COE changes 2026, or evaluating side hustle opportunities due to these changes, here’s what you need to know and how this could be a good opportunity to become a driver partner with Lalamove.
Understanding the 2026 PARF Rebate Update
PARF rebates essentially reward owners who deregister their cars early. This is done by refunding part of the Additional Registration Fee (ARF) with the amount depending on the age of the car. There are 3 ways you can claim your refund which are:
- Encash PARF rebates.
- Offsetting several upfront vehicle taxes and fees.
- PARF rebates transfer to another party.
The PARF changes in 2026 signifies a drastic decrease in PARF rebate where the rebate percentage has been reduced by 45 percentage points across all age bands. and the maximum rebate cap has been cut from S$60,000 to S$30,000.
The table below showcases the changes in the PARF rebate.
|
Age of vehicle eligible for PARF at deregistration |
Current PARF Rebate (% of ARF paid) |
New PARF Rebate (% of ARF paid) |
|
5 years or less |
75% |
30% |
|
Above 5 but not more than 6 years |
70% |
25% |
|
Above 6 but not more than 7 years |
65% |
20% |
|
Above 7 but not more than 8 years |
60% |
15% |
|
Above 8 but not more than 9 years |
55% |
10% |
|
Above 9 but not more than 10 years |
50% |
5% |
|
Above 10 years |
None |
None |
|
Cap on PARF Rebate |
$60,000 |
$30,000 |
How This Affects Car Ownership Costs in Singapore
The PARF rebate change has real implications for drivers and prospective car buyers:
- Higher Depreciation for Cars
With lower PARF rebates, car depreciation increases, this signifies that vehicles will retain less paper value over time. For some instances, mid-range petrol cars may now experience significantly lower scrap values at the end of their COE cycle. - Renewing Your COE Might Look More Attractive
As the scrap value (PARF rebate) has shrunk, some owners may choose to renew their COEs instead of deregistering their vehicles earlier, especially for well-maintained cars. - EVs Become More Competitive
While all cars lose some rebate value, EVs are less impacted because they already enjoy upfront tax incentives that lower their initial purchase cost. This can make EV depreciation more stable comparatively.
What This Means for Singaporeans Considering Delivery Work
In a market where the cost of private transport is rising, many are looking for flexible income opportunities that don’t require heavy car ownership burdens or unpredictable depreciation. That’s where becoming a Lalamove Delivery Partner makes financial sense especially with the exclusive benefits we offer. Whether it is the additional income, 25% fuel discounts or our many other driver partner benefits, they help offset car ownership costs in Singapore, making last-mile delivery an appealing career or side-hustle option with flexible earning potential.
In addition, we’ve partnered with National Delivery Champions Association (NDCA) to further support our most active driver partners. Those who complete higher order volumes can earn complimentary 6 months NTUC membership, giving them access to added perks and recognition. It’s part of our commitment to continually rewarding and supporting our driver community.
Navigating Singapore’s Transport Policy and Your Career
The Budget 2026 PARF rebate changes are a clear signal from the government that vehicle ownership dynamics in Singapore are evolving. With higher depreciation, many drivers may rethink how they get around, particularly in an era of rising COE and declining PARF rebates.
So are you planning to keep your car after the 2026 PARF changes?
Don’t just manage the cost, monetise it!
With flexible earnings and our Lalamove driver partner benefits, Lalamove helps you reduce expenses while earning flexibly.
