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This article is for you if you are not sure to renew COE or scrap vehicle.

Unless you have paid to renew your vehicle’s COE, it will be scrapped in Singapore after 10 years. You should start the process at least 2 weeks before your licencing ends. Your vehicle will not be allowed to be on the road after this date, and you could end up with additional costs.

If you are planning on renewing your vehicle’s certificate (COE), make sure that you get it done before it expires. You can only renew it once for a 5-year or renew for a 10-year. If you want to keep the vehicle registered beyond the current expiry date, you must first pay the PQP (Prevailing Quota Premium).

What is Prevailing Quota Premium (PQP)?

Those who wish to keep their vehicle registered beyond their current COE expiry date should pay the applicable PQP. PQP is the average quarterly change in the QP. It is the avearge of the last three months’ prices. Thus, it changes every month.

Reasons to scrap your vehicle

1. COE Price

According to Motorist.sg, the quota premium for CAT A is $80,000 followed by$102,002 for CAT B. It has become unaffordable to keep your vehicle if you do not need a vehicle for your work purpose on a daily basis. In this case, taking bus and MRT is a good alternative and you should scrap your vehicle at scrap yard in Singapore.

2. Mileage of your vehicle

Mileage of your vehicle is another factor to consider. For a 10 years old vehicle, it is normal to have a mileage of 70,000km to 100,000 km. You can consider to renew your COE if you always maintain your vehicle on time.

For vehicles with more than 200,000km, you might want to carry out a full inspection at a workshop before you make your decision. If the vehicle is still reliable, you can consider to renew your COE. Else, you should trade in for a new vehicle or scrap it.

3. Resale Value

Vehicles that are on high demand will have better resale value. You can research your secondhand vehicle value online before you decide.

Other than that, popular vehicles might have better resale value as the spare part can be easily found. With cheaper spare part, it is still worth it to renew your COE even though the mileage is high.

What is the procedure to scrap your vehicle?

1. De-register your vehicle

If you plan on scrapping your vehicle, then you must deregister it. Doing so allows you to surrender the ownership of the car to a scrap yard or disposal facility. Failing to do so could lead to either imprisonment or a fine. To do this process, you must first clear any debts, such as road taxes and car loans.

2. Claim COE and PARF Rebate

Once you have deregistered your car, you can then apply to the LTA to get the rebate on your Preferential Entitlement Registration Fee or COE. The agency will review your request within a year from the day your vehicle was registered.

The LTA’s rebate for vehicles less than ten years of age is only available for those who have a valid COE. On the other hand, if the duration of the COE remains longer, the rebate will increase. To apply for the rebate, you can visit OneMotoring’s website to get the details of the program. After you have submitted the application form, you can then make an appointment to meet with the agency at its Customer Service Centre.

Owners who are not Singpass users can still submit the Feedback Form to the agency. This will allow you to make an appointment at the Customer Service Centre to have your vehicle deregistered.

3. Vehicle Valuation

You can start the process of deregistering your vehicle by visiting a Singapore scrap yard that’s approved by the LTA. You can schedule an appointment to get an evaluation of the vehicle. The value of your vehicle can vary depending on its model and body. Some facilities can provide an estimate by calling a toll-free number.

It’s better to come to the scrap yard to get an estimate on the value of your vehicle. You should also bring your LTA deregistration and NRIC documents. In addition, you must clear all of your vehicle’s outstanding debts.

4. Inform LTA

You should inform the Land Transport Authority (LTA) of your vehicle’s status by providing them with proof that it has been scrapped or exported. Failure to provide this information could result in you being fined up to SGD2,000 or imprisoned for a period of three months. If you are convicted of this offense more than once, then you could be imprisoned for up to six months.

Conclusion

With all of the information provided, we hope it helps with your decision. Should you decide to scrap your vehicle and need help, feel free to contact us!

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.

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Should You Scrap Your COE Vehicle in 2023?