Every car eventually reaches a point where repairs, road tax and insurance cost more than the car is worth to you. In Singapore that moment often comes as the Certificate of Entitlement (COE) nears its end. Scrapping, more precisely deregistering the car, can return more money than many owners expect, but only if you understand where that money comes from.
When scrapping makes sense
Scrapping is usually worth a look when the COE is close to expiry and you do not plan to renew it, when the car needs major repairs, or when it has been damaged in an accident. If the car is still in good condition, compare a scrap quote with a selling or export quote first. A buyer may value a well-kept car more than its deregistration value.
How the process works
- Check your car’s deregistration details on OneMotoring, the official portal of the Land Transport Authority (LTA).
- If the car is still under a loan, contact your finance company first. Any outstanding balance normally has to be settled before the car can be deregistered.
- Arrange for the car to be scrapped at an LTA-approved scrapyard or exported, then complete the deregistration with LTA.
- Once the deregistration is processed, any rebate due is paid to the registered owner.
What decides how much you get back
The money you receive comes from two sources. The first is the rebate from LTA. Depending on the car’s age and how much of its COE period is left, this may include a Preferential Additional Registration Fee (PARF) rebate and a COE rebate for the unused portion of the COE. The second is the value of the car itself to a scrapyard or exporter, which depends on its make, model, condition and current demand.
From that total, any outstanding loan or charges owed on the car will be deducted. Because the rules and amounts are set by LTA and can change, always confirm the latest figures on onemotoring.lta.gov.sg before you commit.
Get a quote before you decide
A scrap quote costs you nothing and takes the guesswork out of the decision. Our team can compare scrapping, export and selling for your car, explain each figure, and handle the paperwork with LTA on your behalf. Request a scrap quote or call our hotline to talk it through.
