Oct 21 2021
Deregistering Your Car in Singapore
Deregistering Car in Singapore

 

In Singapore, once your Certificate of Entitlement (COE) expires, you will need to deregister your vehicle. In other words, the lifespan of a car in Singapore is capped at 10 years, according to the COE validity. After 10 years or when COE is expiring, car owners would need to decide whether to renew the COE to keep the car or to deregister the old car.

Step by Step Guide to Deregister Your Car in Singapore

If you are not planning to renew COE, the only options left is to either export your car or scrap your car. Check this article here for more information about each option.

Here, we will be guiding you how to deregister your car. If you are not aware of this, below is a step-by-step guidance on hour car deregistration works.

What is Car Deregistration?

Car Deregistration is a procedure needed for you to inform the related Singapore Authority – Landed Transport Authority (LTA) that you do not wish to renew your COE. Upon deregistering, one must submit the proof of the vehicle disposal within a month. Take note here, failure to do so would be deemed as a serious offence in Singapore. Thus, car owners are advised to not do this last minute during expiration of the COE. 

You shall engage a trusted scrap car dealer before COE expires to avoid extra cost needed for car towing services as your car would not be permitted on road. 

What Rebates are You Entitled to Upon Car Deregistration?

PARF COE Rebate

When you deregister your car, the LTA would rebate you a sum of money which is known as  COE rebate and PARF rebate. The sum of these rebates are known as the deregistration value or paper value of your car. You might want to check with the scrap car Singapore dealer to know how much rebates you will be getting back from it. 

Both rebates depend on the type, age of your vehicle and the expiry date of COE. The earlier you deregister from the date of COE expiry, the higher COE rebates you will get. As for PARF rebates, it is a tax rebate that is based on the open market value (OMV) of your car. However, please note that, only PARF cars will be entitled to both rebates while COE cars are only entitled to COE rebates. 

What are “PARF Cars'' and “COE Cars”?

PARF cars refer to those cars that are using their original COE. While COE cars refer to old cars which have been renewed previously. This means, only cars that are less than 10 years old are entitled to PARF rebate. 

Upon renewal of COE, you are no longer entitled to PARF rebate and the renewal is paid depending on the Prevailing Quota Premium (PQP). Check here for more information if you choose to renew COE.

How Car Deregistration Works

Steps 1 to Steps 4
  1. Send Your Car to Singapore Scrap Car Dealer
  2. Deregister Your Vehicle
  3. Encash for COE and PARF Rebate
  4. Submit Disposal Proof to LTA

1. Send Your Car to JA8 Singapore Scrap Car Agent

First of all, you shall request a quotation for the valuation of your car from a Scrap Car Dealer in Singapore. The scrap car agent will then access your car conditions, models, supply and demands of the market for the particular vehicle to come out with a quotation. 

You can get a FREE quotation without any hidden charges from JA8 Scrap Car Singapore. We will handle all the paperwork for you at 0 cost. Submit your vehicle information now.

Your scrap car value would be your Deregistration Value (COE Rebate & PARF Rebate) + Car’s Body Value.

2. Deregister Your Vehicle

Before deregistering the vehicle, car owners must ensure that all outstanding road taxes and car loans are cleared. If you are deregistering the vehicle on your own, it is more troublesome where you will need to prepare all the related documents to deregister the vehicle. Now, it can be so much easier with the help of a Scrap Car Dealer. 

Just leave this to us, JA8 will settle all the fuss and keep you hassle-free from the entire process. All you need to do is to get a free quotation of your car value from us. Fill up the form now and we will get back to you in short. 

Notes: It is a serious offence to keep or continue driving a de-registered vehicle. You might be subjected to a fine or imprisonment or both if caught. 

Make the maximum value out of your vehicle by scrapping your car with JA8 Import & Export. We are known as the best scrap car agent in the market as we provide higher value than market rate and the most convenient services ever.

3. Encash for COE and PARF Rebate

You can apply for the encashment yourself for both rebates on OneMotoring website after you deregister your car.

Alternatively, you may leave it to the scrap car agent.

Upon receiving your vehicle details and after accessing your vehicle, JA8 Scrap Car Singapore will provide you a quotation of how much money in total you can get back from scrapping your car in Singapore.

Once you accept the quotation, we will arrange a time to collect the vehicle at your convenience. You don’t even have to travel and we will come to you! You will be paid on the spot, on cash, or by any payment method that you prefer. Let us know ahead which payment that you prefer. 

4. Submit Disposal Proof to LTA

After you have completed the deregistration and scrapped your car, you are required to submit a proof of disposal or export within a month after deregistering. 

Failure to do so might cause you to face a fine up to $2,000 or imprisonment of 3 months.

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Oct 20 2021
Should I Renew, Sell or Scrap My Car?

If you have owned your car for more than 7 or 8 years, you are probably at a point of time where there are few questions on your mind now. Different from other countries, Singapore has different laws for its citizens to own a car in Singapore. One of the major differences is that there is a need to bid for Certificate of Entitlement (COE). Only with a COE, your registered vehicle can be driven to the road.

The cost of a COE is very high as it almost equals the price of a car and it only has a validity of 10 years. What happened after the COE expired?

You will need to:

  • Decide whether to renew the COE on same vehicle for the next 5-10 years
  • Deregister the old vehicle, sell it off or scrap it at a LTA authorized scrap car dealer.

Here, we will list out what are the options you have, and what are the pros and cons of each option to help you in making the best decision.

1. Renew Your COE

As the vehicle’s COE expires, one must renew COE if he or she wishes to keep the vehicle registered to use on the road. If you do not renew the COE, your 10-years vehicle would need to be deregistered and disposed of.

COE must be renewed before it expires. Or by latest, within 1 month after expiration with an extra late renewal fee charged. Depending on your vehicle’s category, you can choose to renew your COE for another 5 or 10 years.

Read here for more pros and cons of renewing COE.

2. Scrap Your Car

Scrap Car Jun Yard in Singapore

Other than selling your car, scrap cars in Singapore would be the best alternative option. Scrapping your car is a good way to make quick money out of an old vehicle. At JA8, when you scrap your car with us, we will pay you upfront in cash, or in any payment method that you prefer. This is by far, the fastest turnarounds for money as compared to selling your car. You do not need to worry about how to trade in the cars or deal with the fuss of selling the car.

Moreover, the value of metal is constantly increasing over time. Despite the faulty condition of your cars, you can get the greatest value out of it by scrapping your car with JA8 Scrap Car Singapore. We provide you with the most convenient services and cover all the paperwork needed. You don’t even need to drive your car to any scrap yard but we will pick up your vehicle at your convenience!

Your scrap car value is made up from two major parts: COE rebate and PARF rebate. Check here to see how your scrap car value is calculated.

3. Sell Your Car to Used Car Dealers

Sell You Car to Singapore Car Dealer

Renewing COE with a 10-years vehicle is definitely not the best option for the majority of the people. This is because a 10 years vehicle might cost you higher maintenance cost and other car servicing expenses. Most of the time, people would just sell their car to car exporters or to get cash from scrapping the old car.

Selling your car can be so much easier with the help of JA8 Import and Export. We are a direct car exporter in Singapore. By selling your old car to JA8, it saves you in terms of intermediary cost and we will handle all the paperwork for you.

Selling your car in Singapore can be totally hassle free with the help of direct car dealers. The least thing that you need to worry about is the condition of your car. Most of the time, car dealers accept almost every car that is offered. You do not need to worry if your car is faulty. We accept all car models in all conditions.

4. Sell Your Car Directly to an End-Consumer.

Sell Used Car to End Buyers

Another option you have is to find an end-consumer and sell your car directly to the buyer. This is the most time consuming method as you would need to source for potential buyers yourself. Selling directly can get you higher cash returns. By eliminating agents or dealers, you would be able to earn a higher selling price.

However, the biggest disadvantage of selling directly to an end user is the amount of effort and work needed. In an owner-to-owner deal, as car owner, you will need to settle all the administrative paperwork needed. It is very crucial for the car seller to know about the procedure clearly in order for a smooth transfer of car ownership.

Other than that,It is not easy to source for buyers. You would need to waste your time to go through various viewings and test drives for those who are interested. Check with JA8 Import and Export to get the fastest free quotation and valuation for your car.

 

3 Things You Should Take Note Before Scrapping Your Car

1. Don’t do it at the last minute!

You should already seek out scrap car service one month before your COE expires to avoid additional cost. 

2. Scrap Car Value is depending on Supply & Demand

If there is greater demand for your car parts, you would definitely get a higher value for scrapping your car. 

3. Find Reliable Scrap Car Dealer in Singapore

It is important to find a trusted scrap car dealer in Singapore that can offer you with best value. You can check from Google Reviews on the services before engaging to avoid potential issues.

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Oct 5 2021
Pros & Cons of Renewing COE in Singapore
Pros and Cons Renewing COE in SIngapore
  • Is your COE coming to expire?
  • Not sure whether to renew your COE or to deregister your vehicle and get a new one?
  • What is the better option other than renewing COE?

Here we analyse for you what are the advantages and disadvantages to Renew COE or to Deregister it.

Why You Shouldn't Renew COE?

1. Your COE and PARF Rebate is Forfeited

You are entitled to 2 cash rebates when you choose to sell or scrap your car in Singapore: COE and PARF rebates. Both of them depreciate along with the age of the car. When the car is de-registered, these 2 cash rebates will be returned to the car owner depending on the age of the vehicle. 

However, if you choose to renew your COE, both of the cash rebates will be forfeited. 

Good news here if you choose to deregister the old car and buy a new one, you are able to use these rebates to offset some cost! 

If you are still considering whether to renew your COE or scrap your car at JA8, read here for more information.

2. High Maintenance Cost

One major thing that you should consider is the car maintenance cost. 

A reminder to car owners who wanted to renew COE, it’s not just a one-off payment that you pay upon renewal. 

You should also factor in other expenses such as the cost of servicing, cost of maintenance, and inspections of an old car.

Renewing your COE might appear to be cheaper and affordable than buying a new car. However, the truth is, the wear and tear of the car is relatively way much higher. A 10 year-old car, plus another 5 or 10 years that you renew on the COE can be old and weary. The regular servicing and maintenance fees are just the minimal expenses. 

Old cars often need more of the regular change of the car parts. You might experience frequent car breakdowns in a short period over and over again. Moreover, these are all costs on your own without any car warranty.

As compared with buying a new car, maintenance cost would be a smaller concern as a new car comes with warranty. If you were to take good care of the car, there wouldn’t be much expenses involved here. 

Some of the new car warranties come with their own terms and conditions. Make sure you know what is covered under your car warranty to ease your future claims.

3. Higher rate of Road Tax

Take into consideration on the road tax that you are going to pay. Car Owners that decided to renew their COE are charged with higher road tax in Singapore. Do you know that in Singapore, the road tax will be increased 10% each year after the first 10 years of your vehicle.

The rate of road tax will continue to rise until it comes to a surcharge of 50% of road tax.

What If You Want to Renew COE?

1.100% Bank Loans

For COE renewal, the majority of the banks in Singapore would only allow a loan tenure for up to 7 years. But at the same time, the financing rate for the COE renewal loan can be up to 100%.

Whereas purchasing a new car, owners can only enjoy a financing rate of up to 70% maximum of the loan. 

Thus, if you do not have enough budget to pay for the 30%, it is suggested that you should renew your vehicle COE instead of deregister it and go for a new car.

2. Lower Depreciation Value

Vehicle’s value depreciates once you own it. The longer the age of the cars, the more value is lost over time. Of course, as a car owner, it’s better to have lower depreciation value. From the original price to the final price you get back from the car when you decide to scrap the car or deregister it. The difference in value is the cost of depreciation.

Car Depreciation Value

Renewing your COE give your vehicle a lower depreciation value as compared to buying a new car. This is because you do not need to pay for the old car anymore. When you renew the COE, only the forfeited PARF and PQP are unavoidable sinking costs that will depreciate in the next 5-10 years. 

When you buy a new car, the depreciation value is commonly higher because more costs are involved. COE, PARF and the car body value are all costs that you need to factor into the depreciation. 

3. Lower Upfront Cost

Renewing COE will cost you a lower upfront cost which is the Prevailing Quota Premium (PQP) while excluding the new car cost. For your information, the PQP varies monthly depending on the COE bidding exercise in the past three months that is conducted.

As mentioned earlier, for owners can get 100% bank loans if they choose to renew COE . This also means that you do not need to fork out a great lump sum of money. Due to the full loan practice, you would only need to pay an upfront cost that is as low as $1,000 and that bank loan can be repaid in 7 years.

Of course, don’t forget to add in the interest rate of the bank loan as part of your cost. The longer the year of loan tenure, the total amount of interest paid would be higher at the end of the period.

Final Words

Generally, we would suggest you to deregister and scrap your car in Singapore to get better value out of the vehicles.

JA8 Import & Export as the best scrap car agent in Singapore uses transparent assessment to calculate your scrap car value. We also help to export your car to other markets.

If you are looking for scrapping your car at highest value and least hasslement, contact us now! We will respond in short with the best quote in the Singapore market. Check what our customers reviewed about our service!

All the paperworks is on us! We help to prepare all related documents. All you need to do is just pass us the car, and get your cash on the spot. Everything else is settled from our end!

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