#value of a used car
Thinking of buying a used car? Our comprehensive guide on how to do so will definitely be of help.
It does not matter whether you are selling your current car or buying a pre-owned. Knowing how to calculate the estimated value of the car is paramount in making sure that you get the best value for your money. The overall value of a car is made up of the “Paper Value” and the “Body Value”. Let us start with understanding what constitutes the “Paper Value”.
The term “Paper Value” is the most commonly used term in the pre-owned market. It is the money you get back from the government when you de-register your car, thus making it the only money you will get back in the case of a total loss to the car (i.e. major accident).
There are two components that will make up a car’s Paper Value. They are the “PARF” benefit and the “COE rebate”.
PARF Benefit is a rebate given when you de-register your car before it’s tenth year of age. A car older than 10 years old will not be eligible for this rebate.
Due to policy changes over the years, the table below shows the different PARF benefits cars registered can get before May 2002 and after May 2002.
Age at De-registration
(Year) PARF Rebate (A)
Above 5 but not exceeding 6 120% of OMV 70% of ARF paid