Is your car's COE term coming to an end? Thinking of scrapping or exporting your car instead of bidding for a new COE? Here are 6 helpful tips that you should take note of before you scrap or export your car.
1. Do not procrastinate until the last minute
Don't leave scrapping or exporting your car until the very last minute. Once the COE expires, your car cannot be on the road anymore. As such, you will have to incur additional costs to tow it to the scrapyard. We highly recommend you to start making the arrangements at least 2 to 3 weeks before the COE expiry date.
2. Prices depends on supply and demand
The value that you get is dependent on various factors such as the supply/demand and the make/model of your car. Particularly in the year 2014 and 2015, it was observed that many new cars were being registered. So when we do a ten years count down, many cars were to be scrapped in 2014 and 2015. Consequently, there was an excess supply of car and therefore lowering the value for the body of your car.
3. Exporting your car will fetch you a better price than scrapping
Briefly explained in the earlier point, the value obtained from your car is dependable on the make & model.
Exporting your car will definitely fetch a better price as compared to scrapping your car. Essentially, selling your car to an exporter refers them helping to sell the car to dealers in other countries. As such, there will be some requirements that your car has to meet before you are able to sell it to an exporter.
Note that these requirements may changes from time to time, but the three below criteria are the common ones that we have observed so far.
If no exporter is willing to take in your car, then the next option would be to scrap your car at a scrapyard. This option will see your car being torn down for its spare parts and precious metal.
4. Offers from exporter varies
For the same car, different exporters will offer varying prices. This will depend on the contacts and countries each exporter deals with. For example, certain countries might ve willing to pay more for a particular brand of car, hence the difference in price offers.
5. Paper value = Total COE rebate + Total PARF rebate
To find out your car's 'paper value', you can check it on LTA's website by clicking on this link. A point to note, you will have to select the intended deregistration date and that the amount will varies depending on the date you select.
6. De-registering the car
Now that you understand the factors for de-registering your car, let's proceed to the final stage of completing the process.
Pro: You will get the full paper value plus the road tax rebate.
Con: Hassle and Effort Required.
First, drive your car to an LTA appointed scrapyard and arranging a return trip. The rebate will be held with LTA for about 3-4 weeks before eventually being released to your bank. To find out more about on the process of deregistering the car yourself, click here.
Pro: Additional body value. Hassle-free and Efficient! All paperwork will be sorted out and completed by them. You will receive the money immediately upon handling over the car, you don't have to wait and monitor when the money will be dispersed by LTA.
Con: There will be a 1-2% deduction from the paper value that acts as interest due to their money being stuck at LTA.
To find out more about this hassle-free service, then please click here.