5 Cars that may increase prices and 5 cars that may not after Budget 2023

 

Getting a new car?

A revision in the Additional Registration Fee (ARF) Structure may impact your buying decision.

The revised ARF Structure is as follows.

Additionally, there is a CAP of PARF rebate of up to $60,000. This would mean you will get a lesser amount when you deregister the car. It may impact the resale value of the car as well. 

5 Cars with increased ARF AND THE POTENTIAL COST OF OWNERSHIP*

The E Class is Singapore's Mid Manager favourite car. It is a car to get to show that you have stepped into the luxury segment.

For the Towkay and CEO, this and the S class are the preferred car to be chauffeured in.

The 'entry' level luxurious sports car. 

Crazy Rich Asian type of Car.

This car is the one where top property agents like to flaunt their earnings own one day.

* Extra Ownsehip Cost is the total of additional ARF and the loss of PARF Rebate upon deregistration. It does not reflect the actual loss as resale prices are subject to market conditions.

5 Cars that still stay the same

If you see one on the road, chances are it comes with a PHV sticker too.

Entry-level European Car to get instead of the usual Japanese suspect.

Entry-Level German Car for one who wants a piece of German automobiles.

Brand and practicality. Worth the extra for a seven-seater.

Because you don't want a Mercedes.

Potential Impact

Cat B and Open Cat are likely to fall as well off car buyers adjust to these additional costs. While they can very well afford it, the potential of a 700K write-off in 5 years may deter some buyers

Insurance for super cars is likely to increase as well due to the cap in ARF which will impact the cost of car replacement if there is a need for one.

Cat A cars demand should remain constant with a small upside.

Disclosure

ARF is estimated from OMV obtained from One Motoring based on 2022/2023 OMV. Car prices are listed on SG Car Mart, excluding any dealer's discount and inclusive of COE. Car prices may fluctuate from time to time.