Step-by-Step Guide: How to Scrap Your Car in Singapore
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Is it time to bid farewell to your trusty, old car? Is your car’s Certificate of Entitlement (COE) about to expire? While you may be hesitant to give up your automobile that has served you all these years, remember that the longer you delay, the more its value will depreciate.
In Singapore, drivers who want to get rid of their old, high-mileage cars, have a responsibility of de-registering their vehicle and selling it, or properly disposing of it. There are two ways you can dispose of your car in Singapore; some may choose to export it to get more money, while others may choose to sell it to the scrap yard if it’s too old and not roadworthy.
Although the thought of scrapping your car may not cross your mind immediately, think of it as doing your part to help the environment. Car scrappage not only ensures that old, pollution-causing vehicles are disposed of efficiently, but parts of the car are also recycled and reused.
However, scrapping your car can seem overwhelming. To help, we’ve compiled a step-by-step guide of what you need to do to scrap your car in Singapore.
4 Steps to Scrap Your Car in Singapore
1. Apply for de-registration
If you’ve decided to scrap your car, you need to deregister it. De-registering your car means you give up ownership of the vehicle and surrender it to your chosen scrap yard or disposal center. Failure to dispose of your car or driving it after deregistering it may land you a fine, imprisonment, or both.
You can do the deregistration online by yourself via LTA’s OneMotoring website. But, before you deregister your vehicle, be sure to clear any outstanding car loans and road taxes!
2. Encash PARF and COE rebates
Once you have successfully deregistered your vehicle, start applying to encash your Preferential Additional Registration Fee (PARF) and COE rebates. Your application to encash the rebates must reach LTA within 12 months from the date your vehicle is deregistered.
Bear in mind that you’ll get the PARF rebate only if your car is less than 10 years old. As for the COE rebate, the longer the duration remaining in your COE when you deregister your car, the more COE rebate you can expect to reimburse.
You can find the PARF and COE Rebate forms on the OneMotoring website. Once you’re logged in via your Singpass, just follow the instructions on the screen and you’re done. You’ll receive the PARF/COE rebate from LTA within 2 to 4 weeks. Alternatively, you can make an appointment, preferably 1 week in advance, to submit the completed Application Form at LTA’s Customer Service Centre.
3. Valuation of the Car
Then, choose a trusted scrap yard that is LTA-approved and make an appointment (within 8 calendar days) with the scrap yard dealer to evaluate your car. The valuation of your car depends on your car’s body and model, plus the supply and demand of its secondhand car parts.
Before heading to the scrap yard, ensure that you have these necessary documents:
- Original NRIC (For Singaporeans and PRs) or Employment/Immigration pass card issued by MOM or ICA (for foreigners) of the authorised person
- Payment for any outstanding road tax and fees
- Deregistration document from LTA
4. Submit proof to LTA
Don’t forget to inform LTA that your car has been scrapped within a month of deregistering your vehicle. You could be charged by law if you fail to submit proof – with 3 months’ imprisonment or a fine of up to $2,000.
Ready to Scrap Your Car?
Scrapping your car is not an easy decision, but it doesn’t have to be complicated. Keeping informed with these essential tips before scrapping your car will certainly help you get the best deal.
There are, of course, other alternatives such as renewing your COE, selling your car, or exporting it as well! That’s why it’s important to plan ahead so you have time to sort things out. For example, you risk incurring additional costs to tow your car to the scrap yard if your COE has expired — because you can’t drive your car on Singapore roads once that happens.
As for your car insurance, you should check with your insurer if you can carry over your coverage for the remaining validity of your policy. Finally, take note of the submission deadlines at every step and remember to do your due diligence before you bid farewell to your 4-wheeled beauty!