Singapore’s Budget 2026 has introduced key changes that directly affect car owners, buyers, and anyone planning to finance a vehicle. With adjustments to rebates and long-term ownership costs, it’s now more important than ever to plan your car loan and insurance wisely.
At Keymotor.sg, we help drivers navigate these changes with clarity, so you can make confident financial decisions.
Key Budget 2026 Change: PARF Rebate Reduction
One of the most impactful announcements in Budget 2026 is the reduction in the Preferential Additional Registration Fee (PARF) rebate.
What changed?
- Lower PARF rebate percentages
- Reduced maximum rebate cap
- Smaller cash return when deregistering your car
Why it matters
The PARF rebate plays a big role in:
- Used car valuation
- Loan structuring
- Long-term ownership cost planning
With lower rebates, car owners may receive less cash back at the end of the vehicle’s lifespan, which directly affects resale and refinancing decisions.
How Budget 2026 Impacts Car Loans in Singapore
1. Used Car Loans
Lower PARF rebates may lead to:
- More conservative used car valuations
- Tighter loan-to-value calculations
This makes it essential to choose a car loan package that balances affordability and flexibility.
2. New Car & EV Financing
As Singapore continues to encourage electric and hybrid vehicle adoption, buyers are reassessing:
- Loan tenure vs monthly instalments
- Long-term ownership cost vs upfront price
A well-structured car loan can help reduce interest burden and improve cash flow.
3. Car Loan Refinancing
If you already own a car, Budget 2026 is a good time to review:
- Your current interest rate
- Remaining loan tenure
- Monthly repayment commitments
Refinancing may help lower monthly payments or improve financial flexibility.
Why Car Insurance Matters Even More Now
With shifting vehicle values and higher ownership costs, having the right car insurance coverage is critical.
Keymotor.sg helps drivers compare:
- Comprehensive insurance plans
- Third-party and third-party fire & theft coverage
- Add-on protection for peace of mind
We ensure you’re adequately covered without overpaying.
Smarter Car Ownership Starts With Better Planning
Budget 2026 reinforces one key takeaway:
Car ownership in Singapore requires smarter financial planning than ever.
At Keymotor.sg, we support you with:
✔ Personalised car loan advice
✔ Competitive financing solutions
✔ Insurance planning tailored to your vehicle and usage
✔ Clear explanations, no hidden terms Whether you’re buying, refinancing, or reviewing your options, our team is here to guide you
Speak to a Car Loan & Insurance Specialist Today
If Budget 2026 has made you rethink your car ownership plans, now is the right time to act.
👉 Visit Keymotor.sg
📞 Talk to our specialists for a personalised consultation Drive smarter. Finance better. Stay protected. for forward-thinking buyers who want the best mix of performance, cost savings and sustainability.
Budget 2026 may be reshaping how motorists think about car ownership, but with the right guidance and planning, you can make informed decisions that work for your financial goals.
Key Motor
