Car Scrapping: How to Scrap Your Car in Singapore?

If you owned an old car that’s no longer roadworthy or has an expiring Certificate of Entitlement (COE), it may be time to consider scrapping it. Delaying the process will only lead to further depreciation in value.

In Singapore, it’s the responsibility of the owner to properly dispose of their vehicle by either selling it or exporting it for more money. If the car is too old and not roadworthy, selling it to a scrapyard is a viable option.

Car scrapping is the process of dismantling a vehicle for recycling purposes. This can be done for various reasons, such as when the car is old and no longer in use or has suffered extensive damage beyond repair.

In Singapore, car scrapping is a regulated process that must be carried out in accordance with the law. It is important to follow the proper process for car scrapping to ensure that it is done safely and legally.

In this article, we will discuss the important things to note before scrapping your car in Singapore.

Reasons for scrapping a car in Singapore

There are various reasons why car owners in Singapore choose to scrap their vehicles. Here are some of the most common reasons:

A. Age of the car

One of the most common reasons for scrapping a car in Singapore is its age. In Singapore, cars are subject to a 10-year lifespan limit, after which they must be scrapped or undergo a costly revalidation process.

B. Cost of repairs

When the cost of repairing a car exceeds its value, it may be more economical to scrap the car and purchase a new one.

C. Expired COE

Cars in Singapore are required to have a Certificate of Entitlement (COE) to be registered and driven on the road. COEs have a limited lifespan, after which they must be renewed or the car must be scrapped.

D. Emissions standards

The LTA has strict emissions standards for vehicles in Singapore. If a car does not meet these standards, it may not be allowed on the road, and scrapping it may be the only option.

E. Other reasons

Other reasons for scrapping a car in Singapore may include the car being involved in a serious traffic accident or simply being no longer needed by the owner.

Steps to Take Before Scrapping Your Car

A. Check COE expiry date

Before scrapping your car, you should check the expiry date of your COE. If the COE has expired, you will need to scrap the car or renew the COE to keep the car on the road.

B. Find out your paper value

The term “paper value” refers to the total value of a vehicle’s COE rebate and PARF rebate. To calculate this value, simply add the two rebates together.

However, it’s important to note that PARF rebates only apply to cars that are less than 10 years old, while COE rebates are granted when a vehicle is deregistered before its COE expires.

The amount of COE rebate you receive will depend on how early you deregister your vehicle. Find out how to calculate your PARF/COE rebate for a registered vehicle here.

C. Settle outstanding loans or fines

If you have any outstanding loans or traffic offence fines related to your car, you should settle them before scrapping the car. Failure to do so may result in legal issues.

D. Cancel car insurance

You should also cancel your car insurance before scrapping your car to avoid paying unnecessary premiums.

By canceling your policy, you may be eligible for a rebate on the remaining premium you’ve already paid. This prorated rebate can help you save money and avoid overpaying for insurance you no longer require.

E. Remove personal belongings

Before handing over your car to the scrapyard, be sure to remove any personal belongings from the car, such as cashcard, coins, attached car accessories etc.

Where and how to find a reputable scrap car agent?

You can choose to scrap your car at any of the LTA-appointed scrapyards or car scrapping agent to ensure that your car is scrapped safely and legally. You can search for reputable car scrapping agents online or ask for recommendations from friends or family.

Car scrapping agents typically offer a higher scrap value and provide a more convenient and hassle-free option for car owners as they handle all aspects of the car scrapping process.

How to find out the scrap value of a car?

The scrap value of your car is influenced by a variety of factors, including the supply and demand of vehicles and the specific make and model of your car. In recent years, there has been a decrease in the number of new cars being registered, which means that there will be fewer cars being scrapped in the future.

This could lead to an “under supply” of cars and result in a higher scrap value for your car’s body. However, it’s important to note that there may be a 1-2% deduction from the paper value of your car due to interest charges from the LTA.

Documents needed for scrapping your car

When scrapping a car in Singapore, there are a few documents that are required.

• For Singaporeans and Permanent Residents, the original NRIC is needed.
• For foreigners, an Employment or Immigration pass card issued by MOM or ICA is required.
• Additionally, payment for any outstanding road tax and fees must be made.
• Deregistration document from LTA.

These documents ensure that the process of car scrapping is done legally and efficiently.

The car scrapping process in Singapore

Driving the car to the scrapyard / Contacting a Car Scrapping agent

Once all the necessary documents are prepared, the car owner can drive their car to the scrapyard or contact a Scrap Car agent who will come and collect the car which is more convenient.

Not only will the Scrap Car agent or exporter take care of all the paperwork and provide immediate payment upon handing over the car, but you may also receive additional value for the body of the car.

However, it’s important to note that there may be a small deduction from the paper value due to interest while the money is stuck at LTA. Overall, using a scrap car agent or exporter can be a great option for those looking for a quick and easy way to dispose of their old vehicle.

Deregistering the car and canceling road tax

Upon arrival at the scrapyard, the car will be inspected to determine its scrap value. The scrap value is based on factors such as the age and condition of the car, as well as the current market demand for its parts. The scrapyard will then assist in deregistering the car and canceling its road tax.

Handing over the car to the scrapyard

After the deregistration process is complete, the car owner must hand over the car to the scrapyard. The scrapyard will then dismantle the car and sell its parts for scrap metal or recycling. Car owners should ensure that they remove all personal belongings from the car before handing it over to the scrapyard.

Transfer ownership of car

The scrapyard will provide the necessary paperwork to transfer ownership of the car. The car owner must sign the transfer form and provide a copy of their identity card. The scrapyard will then send the transfer form to the Land Transport Authority (LTA) for processing.

Collecting payment for the scrapped car

Once the transfer of car ownership is completed, payment for the scrapped car will be made through bank transfer or cash. The amount received will be based on the agreed-upon scrap value of the car.

Keeping your car plate number

To retain the registration number of your vehicle, it is important to apply for it before or during the process of deregistering your vehicle at an LTA-appointed scrapyard, EPZ, or Customer Service Centre. You have a window of one month after deregistering your vehicle to keep the registration number.

It is important to notify the Land Transport Authority (LTA) when your vehicle has been scrapped within one month of deregistration. Failure to provide proof of scrapping could result in legal charges, including a fine of up to $2,000 or imprisonment for up to three months. Don’t forget to take care of this important step to avoid any legal consequences.

Don’t want to scrap your car?

Car scrapping is a necessary process for car owners in Singapore who are looking to dispose of their old or damaged cars. However, if you don’t want to scrap your car, there are other options such as renewing your COE, selling your car, or exporting it. That’s why it’s important to plan ahead and explore your options before the time to scrap arrives.

It is also important to follow the proper process for car scrapping to avoid any legal or financial complications. By taking the necessary steps before scrapping a car and working with a reputable scrapyard or Scrap Car agent, car owners can ensure a smooth and hassle-free car scrapping experience.

For instance, if you choose to renew your COE, it’s best to do so before it expires to avoid additional towing costs to the scrap yard.

If you decide to sell your car, make sure to do your research and find a reputable dealer or platform to ensure a fair price. Whatever your choice may be, plan ahead so you have time to sort things out.

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