Scrap Car in Singapore: The Complete Guide to Doing It the Right Way
Owning a car in Singapore comes with unique responsibilities—from high COE costs to strict government regulations on vehicle lifespan. At some point, every vehicle reaches the end of its usable life. When that happens, the most practical and financially sensible option is to Scrap Car through the proper channels. But what exactly does scrapping a car involve, and how do you do it without losing out on value? In this detailed guide, we cover everything you need to know about scrapping your car in Singapore—from the legal requirements and paperwork to the steps that ensure you receive the highest return.
What Does It Mean to Scrap a Car?
Scrapping a car refers to the process of deregistering your vehicle and disposing of it permanently, either by exporting it, dismantling it for parts, or recycling its materials. In Singapore, the Land Transport Authority (LTA) has clear rules that require owners to deregister cars that have reached the end of their COE period or when the owner no longer intends to use the vehicle. Once deregistered, the car must be scrapped, exported, or stored in an approved location. Failing to do so within the stipulated timeframe may result in penalties or loss of COE rebates.
When Should You Scrap a Car?
The most common reason for scrapping a car in Singapore is the expiry of the Certificate of Entitlement (COE). COEs are issued for 10 years, and once they expire, you have the option to renew or deregister. If you choose not to renew the COE, you are legally required to scrap or export the vehicle. Other reasons to scrap a car include irreparable damage, high maintenance costs, or simply choosing to switch to a new vehicle. In many cases, scrapping is a smarter financial decision than renewing the COE, especially for older vehicles.
Benefits of Scrapping Over COE Renewal
While renewing your COE gives you another 5 or 10 years of ownership, it also involves a significant upfront cost. For older vehicles, maintenance and repair costs may quickly exceed the value of the car itself. By scrapping your car, you can: recover unused road tax and PARF/COE rebates, avoid high maintenance and repair expenses, eliminate insurance premiums and other fees, and create space to purchase a newer, more fuel-efficient vehicle. For many car owners, the decision to scrap is both practical and cost-effective.
Step-by-Step Guide to Scrap Car in Singapore
Step 1: Decide If Scrapping Is the Right Option
Evaluate your car’s age, condition, and COE expiry date. If your COE is expiring soon and the car requires frequent repairs, scrapping may be the best option. You can check your car’s deregistration benefits using the LTA’s ONE.MOTORING portal.
Step 2: Deregister Your Car Through LTA
You must deregister your vehicle with LTA before scrapping it. This can be done online via the ONE.MOTORING website using your Singpass. Once deregistered, your vehicle is no longer allowed on the road, and you have 1 month to dispose of it legally.
Step 3: Choose a Licensed Scrap Yard or Exporter
Select a licensed scrap yard or car exporter approved by LTA. These businesses will either dismantle your vehicle or export it overseas. Make sure to obtain an official disposal certificate as proof of compliance with LTA regulations.
Step 4: Return Vehicle Plates
After scrapping, you must return your vehicle’s number plates to LTA’s designated collection center. This is mandatory and part of the deregistration process.
Step 5: Apply for COE and PARF Rebates
If your vehicle is eligible for COE or PARF rebates, you can apply for them online through ONE.MOTORING. The rebate amount depends on your vehicle’s age and remaining COE.
Step 6: Receive Payment
The scrap yard or exporter will usually pay you for the scrap value of your vehicle. This amount depends on the make, model, condition, and demand for parts. In some cases, you may also receive an additional payment for the body or export value.
Documents Needed to Scrap Car in Singapore
Before scrapping your vehicle, make sure you have the following documents: NRIC or valid ID, vehicle log card or registration details, LTA deregistration confirmation, COE/PARF rebate details (if applicable), ownership transfer letter (if needed), vehicle license plates. Having these ready will help speed up the process and ensure all steps are legally compliant.
How Much Can You Get When You Scrap a Car?
The total amount you receive depends on a few key factors: PARF rebate – available for cars deregistered within 10 years, COE rebate – applicable if you deregister before COE expires, scrap value – based on weight, make, model, and parts salvageable, export value – offered if the car is in good condition and can be sold overseas. Combined, these values can range from a few hundred to several thousand dollars. The key is to compare quotes from scrap yards and use a reputable service that ensures transparency.
Why Use a Scrap Car Service Platform?
Instead of calling multiple scrap yards and exporters, you can save time and get better offers by using a trusted online car platform that helps facilitate scrap car disposal. Platforms like Direct Cars provide: instant quotes from multiple licensed scrap yards, end-to-end paperwork support, coordination of pick-up or drop-off services, help with returning number plates and claiming rebates. This all-in-one approach eliminates stress, ensures compliance, and helps you secure the best payout possible.
Tips to Maximize Returns When Scrapping a Car
Compare Scrap Yard Offers
Don’t settle for the first quote. Scrap yards vary in pricing based on the demand for parts and materials. Getting multiple quotes ensures you get the highest offer.
Remove Accessories
Before scrapping, remove personal upgrades like sound systems, GPS units, or aftermarket rims if they can be reused or sold separately.
Use the Vehicle Until the Last Day
Maximize your road tax and COE usage by using the vehicle right up until deregistration, as you’ll only get a rebate for the unused portion.
Ensure Proper Paperwork
Only deal with LTA-licensed dealers or scrap yards and make sure you receive all official documentation, including the disposal certificate and payment receipts.
Keep Copies for Record
Always keep digital or physical copies of your deregistration papers, receipts, and rebate claims for future reference or tax purposes.
Common Mistakes to Avoid
Missing the One-Month Disposal Deadline
After deregistration, you have one month to scrap or export your car. Failing to meet this deadline can result in penalties and loss of rebates.
Choosing an Unlicensed Scrap Yard
Using unlicensed operators may lead to incomplete disposal, missing documents, or lower scrap payouts. Always verify credentials through the LTA site.
Forgetting to Return License Plates
This mandatory step is often overlooked. Make sure to return the plates to an LTA-authorized collection point after scrapping.
Not Applying for Rebates
If you’re eligible for COE or PARF rebates, don’t miss the chance to claim them. Delayed applications may reduce your refund or lead to forfeiture.
Frequently Asked Questions (FAQ)
How do I know if my car qualifies for a PARF rebate?
Cars deregistered within 10 years of first registration and with unexpired COE are usually eligible. You can check your eligibility on LTA’s ONE.MOTORING portal.
Can I scrap a car before COE expiry?
Yes. If you choose to scrap early, you’ll receive a pro-rated COE rebate for the unused period of the certificate.
How long does it take to scrap a car?
The full process, including deregistration, scrap yard appointment, and rebate claim, can usually be completed in 1 to 3 working days.
Is it better to scrap or export a car?
It depends on the car’s condition and market demand. Exporters may pay more for vehicles in good condition, while older or heavily used cars are better off scrapped.
Do I have to be present during scrapping?
If you’re using a licensed scrap yard or platform, they can handle the entire process for you. Some services even offer pick-up at your location.
What happens if I don’t scrap my car after deregistering?
You risk losing your COE/PARF rebates and may be fined by LTA. Ensure disposal is completed within 30 days of deregistration.
Final Thoughts
If you need to scrap car in Singapore, doing it through the proper channels is not only required by law—it’s the smartest way to recover value from your vehicle. From COE rebates and scrap payouts to smooth deregistration and documentation, there’s a clear process in place that protects car owners. Using a trusted online platform like Direct Cars streamlines the experience, ensures compliance, and gives you the best possible deal. Whether your car’s COE is expiring or maintenance costs are getting too high, now may be the perfect time to scrap your vehicle and move on. Start with an online quote and take the first step toward a hassle-free scrap car solution.
