Motorcycle Depreciation Singapore: What You'll Really Lose Each Year

Motorcycles are often sold as the "affordable" alternative to a car in Singapore. And compared to a $160,000 car with $106,000 worth of COE baked in, a $20,000–$35,000 motorcycle looks reasonable. But the depreciation math is less forgiving than most buyers expect — especially under the 2026 PARF changes that have affected every registered vehicle category, including Category D.

How Motorcycle Depreciation Works

Motorcycle depreciation in Singapore follows the same framework as cars. The basic formula is:

Annual Depreciation = (Purchase Price − Scrap Value) ÷ 10 years

The "scrap value" for a motorcycle is its deregistration value — the PARF rebate plus any remaining COE rebate, minus the deregistration fee.

The PARF rebate is calculated as a percentage of the ARF (Additional Registration Fee) paid at registration. ARF for motorcycles is tiered based on OMV, just like cars. For motorcycles, the OMV is typically $4,000–$12,000, making the ARF relatively modest compared to cars.

Category D COE and Current Premiums

Category D covers motorcycles. In early 2026, Cat D COE sits around $7,989 — significantly softer than the $100,000+ premiums in Cat A and Cat B. Cat D has been more volatile than car categories, with prices ranging from $5,000 to $11,000 in recent years.

The COE forms part of the bike's registration cost and is embedded in the purchase price. When you deregister or scrap the motorcycle, you receive a pro-rated COE rebate for the remaining months of validity — this is separate from the PARF rebate.

The Impact of Budget 2026 on Motorcycle PARF

The Budget 2026 PARF changes apply to all vehicles, including motorcycles. For bikes registered from 13 February 2026 onward:

• PARF rebate at year 9–10: reduced from 50% of ARF to just 5% of ARF
• Maximum PARF rebate cap: reduced from $60,000 to $30,000 (the cap rarely mattered for bikes anyway given lower ARF values)

For motorcycles, the ARF is much smaller than for cars — a typical mass-market bike with OMV around $6,000 might pay ARF of roughly $6,000–$8,000 (at 100% of OMV under the tiered structure). Under the old rules, the PARF rebate at year 9 might be $3,000–$4,000. Under the new rules, it drops to $300–$400.

This means the "terminal value" of a new motorcycle has fallen substantially. The practical effect on a $25,000 motorcycle:

The gap isn't as dramatic as it is for cars (where the PARF cut is more significant in absolute dollar terms), but the percentage impact is similar — roughly a 15–20% increase in effective depreciation.

New Motorcycle vs. Used Motorcycle: Which Depreciates Less?

The strongest depreciation argument for motorcycles is for used bikes with remaining COE and the old PARF scheme.

A motorcycle registered in 2022 (pre-2026 PARF rules) with 6 years of COE remaining and an old-scheme PARF rebate of $3,000–$4,000 still retains that higher scrap value. If you buy that bike secondhand for $12,000–$15,000 today, your depreciation is anchored to the original purchase price and the old PARF calculation — giving you better value than buying a new $25,000 bike with near-zero backend PARF.

This is part of a broader "two-tier" market dynamic now developing in Singapore, where pre-2026 registered vehicles command a premium precisely because of their higher deregistration value. For motorcycles, the gap is smaller than for cars in absolute dollar terms, but the principle holds.

What Motorcycles Actually Cost Per Month

For a new 400cc motorcycle at $25,000 in 2026:

• Depreciation: ~$196/month
• Loan instalment (if financed, 70% LTV, 7-year tenure): ~$280/month
• Road tax: ~$70–$100/year ($6–$8/month)
• Insurance: $500–$1,200/year ($40–$100/month) depending on age, experience, bike type
• Petrol: ~$50–$80/month
• Servicing/maintenance: ~$30–$50/month

Total: approximately $600–$750/month for a new bike

Used bikes with remaining COE (3–5 years) can halve the depreciation cost but require attention to service history, tyre condition, and any structural repairs that may have been glossed over.

Tips for Minimising Motorcycle Depreciation

Buy with COE years remaining. Every year of remaining COE you buy in the used market is COE premium you don't pay fresh. This is particularly relevant now that Cat D COE runs around $8,000 — a bike with 5 years remaining has $4,000 worth of COE already paid (at 50% of Cat D PQP).

Consider less popular makes if budget is tight. Japanese brands (Honda, Yamaha, Kawasaki) generally hold better resale value and have lower maintenance costs. European brands (BMW, Ducati) depreciate more steeply and have significantly higher servicing costs.

Factor in whether you're Cat D or Cat E. Some buyers use Cat E COE for larger bikes (>400cc), which costs considerably more. A 1000cc superbike using Cat E COE is a different depreciation calculation altogether.

For a complete breakdown of the PARF and COE rebate system across all vehicle categories — including worked examples with current 2026 figures — the Singapore COE Navigator covers the full framework so you know your true annual cost before you commit.

Get the free COE Decision Checklist or access the complete kit with total cost calculators and the repair cost database for used bikes and cars.