The new tiered ARF structure will apply to every car that is registered under COEs obtained from the upcoming COE bidding exercise from March 11 – 13, 2013.
ARF = OMV
i.e. if the OMV of a vehicle is $15,000, the ARF will be valued at $15,000 as well.
[(OMV-$20,000)×140%] +$20,000 =ARF
For example if the OMV of a vehicle is $30,000
[($30,000-$20,000)×140%] +$20,000 =$34,000
Thus, for a vehicle with an OMV of $30,000 the ARF is valued at $34,000
[(OMV-$20,000)×180%] +$62,000 =ARF
For example, if the OMV of a vehicle is $75,000
Thus, for a vehicle with an OMV of $75,000 the ARF is valued at $107,000
Do note all the ARF values are before any CEVS rebates.
According to The Straits Times, the increased ARF rates will contribute around $150 million annually. With the change, luxury cars like an Audi A5 or a BMW 5 Series will see ARF costs rising as much as 22 percent or 42 percent respectively.