Depreciation, explained: the only number that really matters
In Singapore, the most important number in car ownership is not the sticker price. It is the annual depreciation — what the car costs you to own, above all running expenses, per year.
How to calculate it
Depreciation per year = (Purchase price − PARF rebate − COE rebate) ÷ Years remaining to COE expiry.
Example: A 2020 car purchased for S$120,000 with S$35,000 remaining in rebates and 4 years of COE left depreciates at S$21,250 per year — approximately S$1,771 per month before insurance, petrol and servicing.
Why young COEs punish you
A car with 2 years of COE left and a low sticker price looks cheap. But you get only 2 years of use, and your actual depreciation per year may be higher than buying a fresh COE car.
How to compare fairly
Always compute depreciation per year for every shortlisted car. A S$180,000 car with 9 years of COE and S$50,000 in rebates depreciates at S$14,444/year — cheaper annually than an S$90,000 car with 4 years of COE left.
Our market valuation tool computes depreciation-adjusted value for any car automatically.
