A Complete Guide to Scrapping Your Car in Singapore

Byadmin

Scrap Car is a process many vehicle owners go through when their car reaches the end of its lifespan or when the Certificate of Entitlement (COE) expires. The process ensures that old cars are disposed of in an environmentally responsible way while allowing owners to receive the remaining value of their vehicle.

This guide explains everything you need to know about scrapping a car in Singapore, including the necessary steps, documents required, how to get the best value, and common FAQs.

When Should You Scrap Your Car?

COE Expiry

In Singapore, cars have a 10-year COE validity. When it expires, you can either renew the COE or deregister and scrap the car. If your car is old and not worth renewing the COE, scrapping is the best option.

High Maintenance Costs

Older cars often require frequent repairs and maintenance. If repair costs are becoming too high, it might be better to scrap the car rather than continue spending on repairs.

Low Resale Value

If your car is no longer in demand in the resale market, scrapping it could be a more practical option.

How to Scrap a Car in Singapore

Step 1: Deregister Your Car

Before scrapping, you need to deregister your car with the Land Transport Authority (LTA). Deregistration officially removes the car from Singapore’s road system.

Step 2: Choose a Scrap Yard or Exporter

You can sell your car to an LTA-approved scrapyard or an export dealer. Some cars are exported to overseas markets where they can still be used, while others are dismantled for parts.

Step 3: Get a Quote for Your Car

Different scrap yards and exporters may offer different prices. Comparing multiple quotes ensures you get the best value.

Step 4: Submit Your Car to the Scrap Yard

Once you accept an offer, take your car to the scrapyard. They will inspect the vehicle and complete the necessary paperwork.

Step 5: Receive Your Payment and COE/PARF Rebates

After scrapping, you can claim any remaining COE and Preferential Additional Registration Fee (PARF) rebates. The rebate amount depends on how many years are left on your COE and the age of the car.

Factors Affecting the Scrap Value of Your Car

Car Age and Condition

Cars in better condition may fetch higher scrap or export value. Heavily damaged or non-functioning vehicles may have lower value.

COE and PARF Rebates

If your COE has remaining validity, you can claim a COE rebate. Similarly, the PARF rebate depends on your car’s age.

Demand for Used Car Parts

Scrapyards may pay more for certain car models that have valuable parts. Popular brands and models usually get better prices.

Scrap Yard vs. Exporter Pricing

Some cars are worth more if exported rather than scrapped. Checking both options can help maximize the return.

Documents Required for Scrapping a Car

  • Vehicle log card (Registration Card)

  • Identification documents (NRIC/FIN)

  • Deregistration confirmation from LTA

  • Loan settlement documents (if applicable)

  • COE and PARF rebate details

Tips to Get the Best Scrap Value

Compare Multiple Offers

Different scrapyards and export dealers offer different prices. Comparing multiple quotes helps you get the best value.

Time Your Scrapping Wisely

Scrapping your car just before COE expiry ensures you maximize your rebate value.

Check for Demand in the Export Market

If your car is still in good condition, some exporters may pay more than scrapyards.

Remove Personal Items Before Scrapping

Ensure you remove all personal belongings before handing over your car.

FAQs

How long does it take to scrap a car in Singapore?

The process is usually completed within a few days, depending on paperwork and payments.

Can I scrap my car before COE expires?

Yes, you can scrap your car anytime, and you will receive COE and PARF rebates for the remaining validity.

What happens if I don’t scrap my car after COE expires?

If you don’t renew COE or scrap the car, you will face penalties and storage fees.

Can I sell my car for scrap if it has an outstanding loan?

You need to settle the loan before scrapping or deregistering the car.

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