Should you scrap or export your car? The COE price has been increasing and renewing the COE seems more affordable for most Singaporeans.
However, if your COE is about to expire and the renewal is not possible, you have to deregister your vehicle. Before you can do so, you have to decide if you want to export or scrap your car.
Some people choose to export their vehicle because it’s more money, while others don’t want to export their car due to its condition or old age. Regardless of which option you choose, you’ll get the money back based on the value of your vehicle’s deregistration.
Know the Value of Your Car
Before you make the decision to export or scrap, it is good to understand the value of your car first. A car that has its COE renewed for another 5 or 10 years is considered a COE vehicle. This means that it can get a rebate from the government when it deregisters.
However, this doesn’t mean that you can get a full refund of your COE. Instead, you can get a partial refund of your deregistration value. For instance, if you have a vehicle that has yet to renew its COE, you can get a rebate from the Public Automotive Reserve Fund (PARF) on top of remaining COE.
The value of your car’s deregistration is computed by taking into account the various factors that affect its resale value. This is the deregistration value or paper value. The final deregistration value is the total of COE rebate and PARF rebate. Your PARF rebate will depend on the Open Market Value known as OMV.
Exporting Your Car
Some overseas dealers will pay higher price for your car if it’s a certain make and model. Generally, car exporters will give you a higher selling price than scrapping yards. However, before you can sell your car, you have to meet a couple of requirements. These include if it’s a popular model and if it’s in good condition.
If your car doesn’t meet these requirements, you might not get a high offer from an exporter. In some cases, they won’t even take your car. When it comes to car export prices, the rates depend on various factors such as the profit margins that car scrapyards and exporters have calculated for each vehicle. The demand and popularity of each model may vary in different countries.
Some cars are more valuable to an overseas dealer due to their sturdier construction. However, if you have time to ask for the best price from various exporters, you might have some room for negotiation to get a slightly better price.
Scrapping Your Car
The deregistration value and the body value of your car are two important factors that you should consider when it comes to determining the worth of your scrapped car. While the former is dependent on factors such as the make and model of the car, the latter is affected by the supply and demand of car bodies. For instance, if you have a car with a high number of registrations 10 years ago being a popular model, the scrap value of your vehicle will be lower now.
Before you can get your car registered, you’ll need to take it to an LTA-approved scrapyard. Once you have successfully registered your vehicle, you’ll need to find a way home. The facility will pay you for the car body on the spot, though you might not be able to get much money for it. To get the deregistration value of your vehicle, you’ll need to wait for the LTA to give you a confirmation regarding your rebates.
Conclusion: Scrap or Export Your Car?
Scrap or Export
The most efficient way is to get a few quotations from exporters/scrap yards. In the end, it all depends on the valuation of your car based on the current demand.