Parf Value

[AimanMaulana]

ARF is tiered based on OMV. Nowadays, everything revolve around ARF, which itself is based on OMV. It is very inaccurate to calculate based on OMV today.

 

To add on, if you are buying a car in a band of CEVS C or below, it will go like this:

OMV: 22,000

ARF: 22,800

CEVS: 5,000 penalty surcharge

PARF: ARF ｘ 50% = 22,800 ｘ 50% = 11,400

 

In this case, your CEVS is an additional surcharge that is separate from your ARF entirely.

 

Thank you so much for your detailed explanation. Will definitely be able to write my research paper better this way. I overlooked the fact that in band C and below, it becomes a surcharge instead of rebate, so I got very confused. Thank you :)

[7hm]

Thank you so much for your detailed explanation. Will definitely be able to write my research paper better this way. I overlooked the fact that in band C and below, it becomes a surcharge instead of rebate, so I got very confused. Thank you :)

 

 

Found the information I wanted to share with you:

http://www.businesstimes.com.sg/transport/distributors-rue-parallel-import-advantage

 

The main reason for a PI car's popularity is that it is generally cheaper than a similar model from an authorised distributor because of the PI car's lower OMV or open market value, resulting in lower registration taxes.

 

Apart from having to contend with lower OMVs among PIs, authorised distributors are also unhappy with what they perceive as double standards. One is the regulatory requirement for all cars in the showroom to display the Fels (fuel economy labelling scheme) label prominently on the windscreen.

 

"Many new cars in various PI dealers' premises do not have this label," said a BMS spokesman. "Yet official distributors are often subject to spot checks by government agencies and given warnings should we fail to comply."

 

Another bugbear for authorised distributors is the fixed Evolution Coefficient (EC) of 0.92 for carbon emission values enjoyed by parallel imported cars. Applying this EC lowers the carbon emission figure, thus netting a higher CEVS (Carbon Emissions-based Vehicle Scheme) rebate or lower CEVS surcharge.

The use of this fixed EC - for cars that have not been run in - also allows the batch approval application for five identical cars in the same bill of lading.

The BMS spokesman said: "This means parallel importers not only qualify for lower carbon emissions but they also get to save time and money."

The "Evolution Coefficient" (EC) as described above is the main reason you are observing the discrepancy in ARF between most typical PI vs AD cars... let's take a quick example based on this month's OMVs:

 

 

C200 AVANTGARDE (R17 LED SR) PETROL -- 1991cc:

(Mercedes-Benz C200, gasoline in Avantgarde trim, with sunroof and LED Intelligent Light System)

CO² Emission: 127g/km

CEVS: Band A4 (121~135), $5,000 rebate

OMV: $42,797

ARF: $20,000 + (140%ｘ22,797) - 5,000 = $46,916

PARF rebate: 50%ｘ46,916 = $23,458

 

C200 A PETROL -- 1991cc:   Let's assume this is a parallel imported car

(Mercedes-Benz C200 petrol, automatic 1,991cc)

EC: 0.92 (parallel imported)

CO² Emission: 127g/kmｘ0.92 = 116.84g/km

CEVS: Band A3 (106~120), $10,000 rebate

OMV: $34,014

ARF: $20,000 + (140%ｘ14,014) - 10,000 = $29,620

PARF rebate: 50%ｘ29,620 = $11,729

 

 

Based on the above example, you can see that in this case, the PI car is cheaper to bring in and declare to LTA (lower OMV), and simultaneously enjoys a larger CEVS rebate. Both of these aspects lead to a lower ARF, in this case, substantially so, versus the AD's car. This in turn leads to a much smaller PARF rebate.

However, even if the PI's car has the exact same OMV, it will receive a $5,000 higher CEVS rebate, due to it's EC, which puts it in a higher CEVS band. This still leads to a lower ARF and PARF.

On a secondary note however, in this scenario the AD car is actually a much better equipped car than the PI car - for example it has LED headlamps and a sunroof.

[Mkl22]

Very tricky when it comes to PARF values. It's best to get the dealer to retrieve the current value from one.motoring website on the spot. Don't rely on printed out copies as you don't know when it was printed. I was once shown a printed out copy that was 1 transfer short as compared to the online ad. Who knows what else was being hidden by the dealer? Needless to say, no deal.

Always see the date on the printout. Should be lower right or left corner. If in doubt ask the dealer to print out on the spot again. If they refuse then walk away.

[Phoenix]

Do you get back the road tax if car is scrapped?