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
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.
BODY VALUE
Body value quite simply means the value of the car itself, without considerations to any government rebates. It is when a car is assessed basing largely on its appearance and whether or not it is still functioning properly. In Singapore, most cars are exported when they are de-registered. Therefore, the body value of a car is also affected by the demand from foreign countries for that particular model.
When trading in your old ride for a new one or for another pre-owned, dealers might also offer a higher body value. However this is usually done to cover up the marked-up price of the new/used car you are buying from them.
Body value is an extremely variable amount even between similar models of similar age. This is because body value is not determined by fixed prices such as COE or OMV.
Paper Value + Body Value
Combine both of this together and you will arrive at the average cost price of a car. Even though the body value of a car might be hard to determine, it is still possible to judge from the Paper Value to determine if the amount you are paying for your pre-owned car is justified.
What if the car is an OPC car?
How do I calculate the Paper Value of an OPC car?
It is the same as deriving the Paper Value of a regular car. However, due to the upfront rebate of not more than $17,000, this value would have been much lesser or none at all as compared to a regular car.
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