QUICK GUIDE ON CAR VALUATION

If you are currently a vehicle owner and would like to make a quick assessment on the value of your vehicle for sale, these are some steps you can take to arrive at an estimate of its current market value. It would be important to bear in mind that the following is meant to serve as a guide only. If your vehicle is not "typical" in any way, for example, if it has been extensively accessorised, is older than 10 years, or has a vintage/rarity appeal, the following will not necessarily apply.

Assess Current Market Offerings
This step is to determine the following:

1. Whether there cars similar to yours (in terms of age, specifications, etc) available for sale locally.
2. The approximate annual depreciation for these cars based on the asking price.

Currently, the best source of information for the above will be the local newspapers' classifieds section. Try to contact at least three advertisers so that you can get a range of estimates.

To determine the approximate annual depreciation, apply the following formula:

{(Asking price - minimum PARF benefit)/(120-age of car in months)} x 12

The minimum PARF benefit is the residual value that will apply at the end of the 10th year for that car and differs from car to car depending on the OMV (Open Market Value) of the car and the date of registration. As a rough guide the following applies:

Note: The above is a guide only. Please verify the corresponding percentages for each car you are looking at with the seller.

Once you have determined an estimate for the current depreciation levels for cars similar to yours, use the following formula to work out the approximate value of your car based on the depreciation approach:

{Approximate annual depreciation x (120-age of your car in months)/12} + Your car's minimum PARF benefit

Determine Base Value
This will give you the absolute bare minimum that your car is worth if it were to be exported. The base value is arrived at by determining the value of the following three components and summing these values:

1. PARF rebate
2. COE rebate
3. Export value of the car (this is often referred to as the "body" value)

Both 1 & 2 are loosely referred to as your car's "paper value" and can be determined by making an online query at www.onemotoring.com.sg under the section "De-register a vehicle".

If you do not intend to register a new vehicle in your name, you will need to deduct a percentage (we use 5% currently) from 1 & 2 above to determine the market value of the "paper". This is a "fee" that is applied by brokers who trade "paper".

If you intend to register a new vehicle in your name, you may be able to realise the full value of your old car's "paper" depending on the value of your old car's paper and the import value of your new car and the prevailing COE levels. We advise you to discuss this with the company that is selling you the new car to obtain specific information.

An estimate for item number 3 above can be arrived at by contacting vehicle exporters who will ask you for the following information:

1. Make and model
2. Engine capacity
3. Transmission type
4. Date of registration
5. Year of manufacture
6. Colour
7. Interior trim (leather/fabric, colour, manufacturer specific trim definitions)
8. Rim type (alloys, "sports rims", normal wheels with wheel covers)
9. Other notable accessories (eg, sun-roof, cruise control, climate control, xenon lights, rain sensors, number of airbags, transmission variants like tip-tronic, multi-function steering wheel, in-built CD changer, etc)
10. General vehicle condition

Applying the Results
Once you have completed the above, compare the results.

If you would like to seek further advice, please contact us for an obligation free discussion.

Back to articles