How to Scrap Car in Singapore? Full Guide
Is your vehicle’s COE going to expire soon? If so, what are the alternative you have other than renewing your vehicle’s COE? Is it a good idea to renew your vehicle’s COE? Or will it be more profitable to scrap your vehicle/ export your vehicle to third world country?
At JA8 IMPORT AND EXPORT, we will provide you a full guide on how to scrap car in Singapore and why you should do so. If you are looking to scrap your car in Singapore, here’s a detailed summary of the entire scrap car process in Singapore. You can also find out how much money you can make from your vehicle!
Should I Renew My COE or Deregister it?
In Singapore, you must bid for a Certificate of Entitlement (COE) in order to register and own a brand new vehicle.
- After securing a COE, you can register for a vehicle and every COE gives you the right to use your vehicle on the road for a 10 years period.
- At the end of the 10-year, you can choose to renew the COE by paying the current average PQP (Prevailing Quota Premium) in relation to your vehicle category.
- If you do not wish to extend your COE, you can choose to deregister your vehicle.
If you choose to deregister your vehicle before its COE expires, you will be eligible for rebates from the unused portion of your COE.
The amount of COE rebate depends on the period of COE that is unused. You may also be granted Preferential Additional Registration Fee (PARF) rebates, depending on the age of your vehicle.
Scrap Car Value in Singapore: COE and PARF Rebate
- How much PARF Rebate My Car is Entitled to?
PARF rebates are eligible only if your car is not more than 10 years old. While for taxis, PARF is only available for those that are not more than 8 years old. You get to enjoy a higher PARF rebate when you deregister your car earlier. There are certain criteria that your car/taxi must meet in order to enjoy the PARF rebate.
Criteria to Meet to Enjoy the PARF Rebate:
- Private Vehicle / Company Vehicle/ Private Hire Cars / Off-Peak Cars
- Must be a new car at the time of registration in Singapore, or if not, your vehicle must be an imported used car registered in Singapore on or after 1 Sep 2007
- Must not more than 10 years old at the time of deregistration
- Must not been laid-up during from the date of registration
- Taxis
- Must be a new taxi at the time of registration in Singapore
- Must not more than 8 years old at the time of deregistration
- Must not been laid-up during from the date of registration
How is PARF Rebate Calculated?
PARF is calculated based on:
- Your vehicle’s age from the day it was registered to when you deregister the vehicle
- Amount of ARF – Additional Registration Fee that you have paid upon new vehicle registration.
How much COE Rebate My Car is Entitled to?
You will be entitled to COE rebate if you deregister your vehicles before the COE expiration. The COE rebate value is based on your paid Quota Premium (QP) or if Prevailing Quota Premium (PQP) for a renewed COE. When you deregister your car, the QP/PQP will be prorated based on the remaining number of months and days of your vehicle’s COE.
If COE expires before you deregister the car, you will not be entitled to any COE rebates.
How to calculate my COE Rebate?
Generally, the COE rebate formula is as below:
COE rebate =
(Quota Premium paid x number of months left on your COE) / Total number of months bought by COE
Eg. Andy paid a quota premium of $40,000 for his COE. He decided to deregister his car after 6 years and 10 months, here’s the calculation on the COE rebate that Andy will receive:
- Number of months left on COE = 10 years – 6 years 10 months = 38 months left
- COE Rebate = ($40,000 x 38)/120 months
Andy will get $12,666.67 in COE rebate back for his car!
What Happens if I Renew My COE After 10 Years?
If you renew your vehicle COE after ten years, you will be losing the rebate for your PARF value. Moreover, you would need to pay for the Prevailing Quota Premiums.
If your PARF value rebate is $17,000 and current’s Prevailing Quota Premium costs $35,000, the COE renewal would cost you a total amount of $52,000. This means that your depreciation for the next 10 years for the car would be $5,200 per year.
From the date of deregistration, you have 12 months to redeem your car’s PARF and COE rebates.