Additional Registration Fee (ARF) in Singapore: 5 Mistakes to Avoid
Calculates the tiered ARF for cars registered in Singapore. The maths is not complicated, but a handful of errors come up again and again in this and related loans & finance calculations. Here is what to watch for.
Inflation erodes buying power, so a savings goal set in today's dollars needs to be adjusted upwards for the years it will take to reach it. Singapore's core inflation has varied widely over the past decade, so it is worth testing a range of rates.
Cars in Singapore carry costs found almost nowhere else, including the Certificate of Entitlement and the Additional Registration Fee. Loans are capped at 60% or 70% of the price depending on the car's Open Market Value, and the maximum tenure is seven years.
1. Paying only the minimum on a card
Minimum payments barely cover interest, so balances can take years to clear.
2. Only looking at the monthly payment
A longer tenure lowers the instalment but raises the total interest paid.
3. Comparing flat rates with effective rates
A 3% flat rate can be close to 5.5% effective because interest is charged on the original amount for the whole term.
4. Using unrealistic returns
Projecting 10% a year for decades can make goals look easy; test lower rates too.
5. Forgetting inflation
S$1 million in 30 years will buy much less than S$1 million today.
The correct method
100% on the first S$20,000 of OMV, 140% on the next S$20,000, 190% on the next S$20,000 and 250% above S$60,000.
For example, with these inputs:
- Open Market Value (OMV) (S$): 35,000
the calculator returns:
- ARF payable: S$41,000.00
- ARF as % of OMV: 117.14%
ARF tiers are revised from time to time in the Budget. Check LTA's current schedule before relying on the figure.
Related calculations
- Break-Even Calculator: Finds how many units you must sell to cover costs.
- Profit Margin Calculator: Calculates profit, margin and markup from cost and price.
- Markup Calculator: Finds the selling price from cost and markup.
- Discount Calculator: Works out sale prices during Great Singapore Sale, 11.11 and other promotions.
The Additional Registration Fee (ARF) Calculator applies the formula consistently, so it is a quick way to double-check your own working.
Run your own numbers: Additional Registration Fee (ARF) Calculator