For Singaporeans who want to get rid of their old high-mileage cars, they have a responsibility of de-registration and the proper disposal of their old car. There are many avenues to which you can scrap your car in Singapore.
Some may choose to sell it to the junkyard, while others would prefer exporting them as secondhand vehicles. In either case, the vehicle has to undergo the due procedure for scrapping before officially being acquired by the new entity (a new owner or the dump site).
What do you have to do to scrap your car in Singapore?
1. Application for De-registration
As the owner, it’s your responsibility to apply for the de-registration of the vehicle. De-registration means relinquishing one’s ownership of the car and surrendering it to the appointed disposal center.
However, before you do this, make sure that you have cleared any outstanding car loan and road taxes. This has to be done on time and updated promptly in the government systems.
Essentially, there are two ways to dispose of your old vehicle. Either by sending it to the junkyard to get it crushed or exporting it to other markets. You can also retain the COE and sell it as part of the bargain to the appointed dumpsite, or new owner.
After the de-registration process, the owner is clear to send such documents with the vehicle to the junkyard.
2. Application to Encash for PARF and COE Rebate
After you have successfully de-registered your vehicle, you should start applying to encash for your Preferential Additional Registration Fee (PARF) and COE Rebate. These rebates will compensate you for the remaining valid period for the car before the COE expires.
To find the PARF and COE Rebate forms, simply visit the One Motoring website and log in with your SingPass 2FA. Alternatively, you can visit the LTA Customer Service Centre at 10 Sin Ming Drive to apply for the encashment.
Obviously, the easier way to do it is online with your SingPass 2FA. Once you’re logged in, just follow the instructions on the screen and you’re done. You’ll receive the PARF/COE rebate from LTA in 2 to 4 weeks.
3. Valuation of the Car
The LTA-approved junkyard will perform the valuation of the car. While the body of your car provides the basis for the valuation, there are other factors that affect the final valuation. This includes the car’s model, supply and demand of the vehicle junk and even where you scrap your car.
When you’ve received compensation for your scrap car, the junkyard owns the right to the vehicle. Which means that the junkyard can dispose of the vehicle as they wish.
Possible Disposal Sites/Methods for Scrapping
While there are many ways for you to scrap your car, many Singaporean car owners choose to engage the services of a motor dealer to help them scrap or export their cars.
Why? Because it’s way more convenient than doing it on your own and you usually get more money back!
With help from the dealer, the de-registration and subsequent disposal of your car is a quick and easy process. Simply visit your dealer of choice and they’ll provide you with a quote for your car. If you accept the offer, the car will be off your hands and you’ll get the cash for your car immediately.
However, if you still want to scrap your car by yourself, here’s how you can do it.
- LTA-appointed Scrapyards: These scrapyards provide a valuation for the body. Once accepted by the scrapyard, the de-registration process will follow.
- LTA-appointed export processing zones (EPZ): Here, you only send your vehicle to the EPZ waiting for approval and possible exportation. Once accepted, the car will be automatically de-registered and full compensation offered.
- LTA Counter: This is for vehicles that will be exported out of Singapore. You have to submit the valid and required export documents for the purposes of de-registering the vehicle. Usually, a motor dealer would carry this out for you. The LTA counters can also be used for Vehicles that are eligible for rebates. For cars that qualify for PARF rebates, first of all, you can de-register the cars and then dispose of them. You will then be required to submit proof of disposal after one month.
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