The Budget 2023 speech just concluded earlier this week, and this presents some new changes to the Additional Registration Fee (ARF) system we are currently adopting. Deputy Prime Minister Lawrence Wong has since announced the Land Transport Authority (LTA) will increase the ARF values for new and used cars with an Open Market Value (OMV) of more than S$40,000.

OMV refers to the cost of the vehicle when it reached our shores, and before any COE, import levies, or other taxes are applied to the car.

Now, before everyone grabs their pitchforks and rallies on social media for yet another “give chicken wing, take whole chicken back” debate, if you’re not a luxury car buyer, there is no need to panic. Mainstream cars that make up the majority of car purchases in Singapore will remain fairly unaffected, as your run-of-the-mill Toyota or Honda typically has an OMV of S$20,000 or less. 

Conveniently, LTA has already curated a handy chart to document the changes.

If you don’t want to reference the chart, basically with this new scheme, the more expensive your car is, the more you will have to fork out. And don’t think you can escape this either, and this new ARF law is already in effect.

The PARF (Preferential Additional Registration Fee) rebate has also seen some change, and existing car owners can only get up to a maximum of S$60,000 with the new rules. This may or not be a huge factor to you, as in the past, you could get back up to 75 per cent of the vehicle’s PARF if you de-registered your vehicle within five years.

The biggest hitters will be the luxury car market, where most of their stock (even the base products) has an OMV of at least S$30,000. While you won’t see much of a change for a new 2 series, prepare to stomach a lot more for that gleaming 7 series at the back.

For example, if you were to walk in and purchase a Ferrari now, you would have to pay an additional 100% ARF tax, as the car’s OMV exceeds SGD$ 80,000. This translates to roughly another SGD$ 300-450k out of your precious bank account.

Would this shun people away from the ultra-luxury segment of the market? Perhaps, but to some of these owners, forking out another 200k or so isn’t something that is detrimental for them. Singapore has also seen a record number of luxury car sales in recent years, and that trend is set to only head skywards.

The best piece of advice we can give at this point is to prepare your wallets.

Catch the latest news right here on AutoApp!

With COE prices skyrocketing off to a record-breaking 6-digits in 2022 coupled with LTA reducing the total number of COE premiums available, car owners and prospective buyers are now caught in a bind. An increasing number of them are on the fence, unsure of when is the “best” time to drop that deposit on a brand-new car.

Of course, the ideal scenario for every customer is the hope that COE premiums see a steady decline in future cycles, while simultaneously deferring purchases when COE prices are too high. This is where Lexus’ Advantage programme comes into play.

With Lexus Advantage, customers are provided additional time till 31st December 2022 to make an informed decision before confirming thie COE bid for their new Lexus. This programme enables customers to have the flexibility to choose when to exercise their bid whilst enjoying the convenience of a complimentary Lexus courtesy car in the process.

Lexus Advantage also extends convenience to customers who wish to sell their existing cars, preventing these cars from becoming depreciating assets. Customers who trade in their vehicles will receive a complimentary Lexus courtesy car, alleviating their concerns about having to keep their current vehicle for months while waiting for their new Lexus.

Here are some of the benefits prospective customers can look forward with this programme:

1. Flexibility to reserve a Lexus model of their choice at the current price, with flexibility to bid COE at a later date. Should the COE price fall below the reserved price, the buyer will receive a dollar-for-dollar rebate. If the price goes above the reserved price, the buyer will be eligible for COE subsidies up to $3,000.
2. The ability to trade in their current vehicle now to get the best trade-in value yet enjoy the convenience of a complimentary Lexus courtesy car while waiting for the new vehicle, upon handing over their existing car.
3. Other ongoing sales promotions with no limitations. 

Available from 11 November to 31 December 2022, the program is eligible for anyone looking at new car purchases. However, with a programme like this, there are bound to be caveats.

The programme only has limited available units, and are only applicable to the Lexus ES 300h and Lexus NX 350h for now. There is one consolation though, with Lexus extending the option for customers to enjoy any other relevant sales promotions offered during the time of purchase.

Be up to date with the latest news here at AutoApp!