Application to convert an OPC to a normal car can be done at the Land Transport Authority (LTA). You will have to pay LTA S$100 as the conversion fee. In addition, you will have to fork out the pro-rated S$17K rebate which you have enjoyed when you purchased your OPC. The formula to calculate the top-up amount is as follows:

$17,000 x (120 months - No. of months that has passed at the point of conversion) / 120 months

Conversion of red car plate to normal car plate

This top-up amount will be apportioned to the COE and ARF value which shall be illustrated here with an example.

Car registered on 1 Jun 2005 as an OPC

COE = $11,000
ARF = $20,000

Because the car is registered as an OPC, the $17K rebate is used to offset the COE first, followed by the ARF. Therefore,

COE = $0
ARF = $20,000 - ($17,000 - $11,000) = $14,000

This OPC is now converted to normal car on 20 Jan 2007. The period when the car is registered as an OPC is as follows:

1 Jun 2005 to 31 Dec 2006 = 19 months
1 Jan 2007 to 20 Jan 2007 = 20 days or 0.67 months (i.e. 20 days divided by 30 days)

Hence, the total no. of months which the car was registered as an OPC is 19.67 months. The top-up amount to convert the OPC to normal car is calculated as follows:

$17,000 x (120 months - 19.67 months) / 120 months = $14,213

This top-up amount will be apportioned to the COE and ARF according to the following:

COE = $11,000 / $17,000 x $14,213 = $9,197
ARF = $6,000 / $17,000 x $14,213 = $5,016

Therefore, when the owner de-registers this car, the COE amount will be $9,197 and the ARF amount will be $19,016 (i.e. $14,000 + $5,016).

In summary, this $17K rebate is solely between the car owner and LTA. The bank is not involved here. Accordingly, the existing car loan from the bank remains unchanged. The top-up amount is made payable to LTA and if need be, the car owner will have to take personal loan with the bank to cough out this amount.