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.
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!