If you own a van in Singapore — whether for personal use or business — you know it’s an asset that needs proper care. But over time, maintenance costs pile up, and performance may start to drop. When that happens, the big question arises: Should you repair it, or is it time to scrap your van in Singapore?
While repairs can extend a vehicle’s lifespan, there comes a point where scrapping is more practical, cost-effective, and even environmentally responsible. Here are the key factors to help you decide.
1. Repair Costs Are Higher Than the Van’s Value
One of the clearest signs it’s time to scrap your van in Singapore is when repair costs exceed the current market value of the vehicle. For example:
- A major engine or transmission repair might cost over $4,000.
- If the van’s resale value is only $3,000, it’s a poor financial decision to repair.
Always compare the cost of repair vs. the cost of buying a newer, more efficient van — especially when rebates or trade-in options are available.
2. Frequent Breakdowns Affect Productivity
If your van constantly breaks down, it’s not just a mechanical issue — it’s a business liability. Missed deliveries, delayed services, and frequent trips to the mechanic can cost your business time and money.
When reliability becomes a problem, scrapping the vehicle and upgrading to a newer model can improve operations, reduce stress, and enhance your brand’s image.
3. Your Van Is Near or Past Its COE Expiry
In Singapore, vehicles are subject to the Certificate of Entitlement (COE) system. If your van’s COE is about to expire:
- You’ll need to either renew it for another 5 or 10 years
- Or scrap the van in Singapore and claim any eligible COE or PARF rebates
If your van is already 10 years old and not worth investing in for another COE cycle, scrapping may be the smarter option. Plus, newer vans often come with lower emissions and better fuel efficiency.
4. Safety Concerns Are Mounting
Older vans may lack updated safety features and could pose risks on the road. If the vehicle struggles with braking, steering, or lighting — or if it fails repeated inspections — it might be safer and more responsible to retire it.
Scrapping the van and replacing it with a newer, road-safe model protects not just the driver, but everyone else on the road.
5. Environmental and Cost Incentives
Singapore encourages vehicle owners to go green. In some cases, scrapping an old petrol or diesel van and switching to an electric vehicle may qualify you for:
- Government incentives
- Early Turnover Scheme (ETS) benefits
- COE rebates
So beyond just saving on repairs, you may actually earn money when you choose to scrap a van in Singapore.
Final Thoughts
Deciding when to scrap your van in Singapore isn’t always easy, but if it’s breaking down frequently, costing too much to fix, or nearing the end of its COE, it may be time to move on. Scrapping responsibly not only makes financial sense — it supports Singapore’s vision for a cleaner, safer transport future.
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