Hotline (24 HRS) 65 9144 1158
Working Hours Mon-Fri: 8.00 - 17.00

Land Rover meets Tesla: What you need to know about Rivian, the EV-maker that went public last week

Looking to scrap your car? Here's your step by step guide on how to scrap a car, replete with tips and info on how much money you can expect to get back.

Out with the old, in with the new. Or perhaps, you've decided to use public transport and ride-hailing services such as Grab and Gojek going forward. Whatever the reason for getting rid of your car may be, besides exporting or selling your car, you have the option to scrap your car.

While the thought of scrapping your car may send you hysterical at first — it can be tedious and daunting — take heart that all's not lost. We've put together this handy guide to help you along the way.

Step by step guide to scrap a car in Singapore

There's a process to follow if you've decided to scrap your car. Here are the main steps you need to take note of.

#1 Send your car to your chosen scrapyard

For starters, your chosen scrapyard has to be an LTA-approved scrapyard. You'll have to make an appointment with the scrapyard operator prior to sending your car for scrapping.

The LTA-approved scrapyard will provide you with the valuation of your car, taking into account factors such as your car's body, model, supply and demand of the vehicle junk.

Of course, you're responsible for getting your car to the scrapyard and arranging your own transport back home.

Prefer something more convenient? Get help from a CaseTrust-SVTA accredited motor dealer. The motor dealer will give you a quote for your car. This is why it's also a good idea to do your own research to find one that pays you the most for your soon-to-be de-registered vehicle if you're looking to get as much money back as possible.

#2 Apply for de-registration

Before you de-register your car, you need to ensure that you've cleared all outstanding car loans and road taxes. It's your responsibility to apply for the de-registration of your vehicle to relinquish your ownership of the car. The de-registration can be done online on LTA's OneMotoring website. It is one of the many digital services available to car owners. You need to log in with your SingPass/CorpPass 2FA.

Important note: It is an offence to keep, drive or use a de-registered vehicle. Those who flout the rules may be prosecuted in court, face a fine or imprisonment or both.

#3 Encash for PARF and COE Rebates

You can apply to enjoy your PARF (Preferential Additional Registration Fee) and COE (Certificate of Entitlement) rebates on the OneMotoring website after you've de-registered your car.

Alternatively, you may visit the LTA Customer Service Centre at Sin Ming Drive to apply for the encashment.

Keep in mind that you'll get the PARF rebate only if your car's less than 10 years old. It is a tiered tax rebate based on the open market value of your vehicle.

As for the COE rebate, the longer the duration remaining in your COE when you de-register your car, the more COE rebate you can expect to enjoy.

#4 Submit proof to LTA

You are required to submit proof that your car has been scrapped within a month of de-registering your vehicle. Failure to do so may result in you getting prosecuted in court. You may also have to deal with 3 months' imprisonment or a fine of up to $2,000.

How much money you can expect to get back

The money you can expect to receive from the whole process comprises the PARF rebate, COE rebate and your car body's value (i.e. the amount that motor dealers or LTA-approved scrapyards assign your car).

#1 PARF rebate

This is a tiered tax rebate based on open market value of your vehicle. You can enjoy 50% to 75% PARF rebate if your car is (i) is under 10 years old; and (ii) has never had its COE renewed.

#2 COE rebate

This rebate is basically the pro-rated amount of your unused COE. You can easily calculate the COE rebate you're eligible for with this formula:

COE rebate = (Quota Premium paid x number of months left on your COE) / Total number of months bought by COE

By extension, you will not receive a COE rebate if you de-register your car after your COE has expired.

#3 Your car body's value

Many different factors influence the body value of your car. These include general demand and supply, your car model, and whether the scrapyard or motor dealer is out to fleece you. As mentioned, the prices quoted by scrapyards and motor dealers can vary, so do your due diligence ahead of time!

What to do with your PARF and COE rebates?

You have multiple ways to utilise your PARF and COE rebates: encash them, use them to offset upfront vehicle fees and taxes when you register a new car, or transfer your rebates to another individual. For the latter, a $15 fee applies for each rebate transfer you make. You can find all the relevant information here.

Back to top

Tips on scrapping a car in Singapore

Scrapping a car isn't as straightforward as it seems. Aside from researching your options, it's important to plan ahead so you have time to sort things out. For instance, you risk incurring extra costs to tow your car to the scrapyard if your COE has expired — you aren't allowed to drive your car on the road once that happens.

For any unused portion of your car insurance, definitely reach out to your insurer separately for the refund. Looking to encash PARF and COE rebates? Take note you have 12 months from the date your car's de-registered to do so. After you've submitted the PARF and/or COE rebate form(s) to LTA, you can expect to receive the rebate(s) in two to four weeks' time.

(credits to: