Scrap Car: A Complete Guide to Turning Your Old Vehicle into Value
When the time comes to part ways with your vehicle, one of the most practical and environmentally responsible solutions is to Scrap Car instead of letting it sit unused or attempting costly repairs. In Singapore, scrapping a car is not just about getting rid of an old machine it’s about recovering value, following regulations, and contributing to sustainable recycling practices. The process ensures that your car’s materials are reused responsibly while providing you with rebates and monetary returns for your deregistered vehicle.
In this detailed guide, we’ll walk you through everything you need to know about scrapping a car in Singapore from understanding the process and benefits to tips on maximizing your returns.
Understanding What It Means to Scrap a Car
The term scrap car refers to a regulated process of deregistering and dismantling a vehicle that’s no longer suitable for use on the road. Instead of abandoning it or attempting to sell it at an unreasonably low price, scrapping ensures your car is handled properly under the Land Transport Authority (LTA) regulations.
Every car in Singapore has a Certificate of Entitlement (COE) that lasts for 10 years. When it expires, owners have two main options either renew the COE or deregister the car. For many, renewing the COE is financially unfeasible due to the high cost, so scrapping becomes a practical and rewarding option.
Why You Should Scrap Your Car
There are multiple reasons why car owners choose to scrap their vehicles instead of renewing or exporting them.
1. COE Expiry
When the 10-year COE period is up, renewing it can cost tens of thousands of dollars. For cars that are already old or not in great condition, paying for renewal isn’t worth the expense. Scrapping the car allows you to reclaim rebates and recover some monetary value.
2. High Maintenance Costs
Older cars often come with recurring repair issues engine troubles, rust, or worn-out parts. Instead of continuing to pay high maintenance bills, scrapping helps you cut your losses and start fresh.
3. Environmental Responsibility
Scrapping ensures that vehicle components are properly recycled and that harmful fluids are disposed of safely. This supports Singapore’s green initiatives by reducing waste and pollution.
4. Recovering Rebates
When you scrap your car before the COE expires, you may be eligible for a COE rebate. Similarly, if the car is less than 10 years old, you can claim a PARF (Preferential Additional Registration Fee) rebate. Together, these can amount to a significant sum.
5. Legal Requirement
Abandoning an unregistered or unused car is illegal in Singapore. The proper scrapping process ensures compliance with LTA laws and helps you avoid penalties.
Key Terms to Understand Before You Scrap Your Car
Before proceeding, familiarize yourself with the terms that impact your final payout:
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COE (Certificate of Entitlement): A permit required to own and drive a car in Singapore for 10 years.
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COE Rebate: A refund for any remaining COE validity when you deregister early.
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PARF Rebate: A rebate you receive for deregistering your car before it turns 10 years old.
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Deregistration: The official process of taking your car off the road and out of LTA’s records.
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Scrapyard: A facility approved by the LTA to dismantle and recycle vehicles safely and responsibly.
The Process of Scrapping a Car in Singapore
Scrapping a car is a systematic process that requires attention to detail. Here’s a step-by-step breakdown:
Step 1: Prepare for Deregistration
Before scrapping your vehicle, ensure that there are no outstanding loans, road tax, or fines associated with it. Gather important documents like your log card, NRIC, and proof of ownership.
Step 2: Deregister the Vehicle
To scrap a car, you must first deregister it through the LTA. This step confirms that your vehicle is officially taken off the road. You can deregister the vehicle online through LTA’s platform or at an authorized service center.
Step 3: Choose a Licensed Scrapyard
After deregistration, the next step is to bring your vehicle to an LTA approved scrapyard. It is crucial to only use approved scrapyards to ensure proper disposal and avoid legal complications. These scrapyards dismantle your car safely, recycle its parts, and issue you with the necessary disposal certificate.
Step 4: Deliver or Tow the Vehicle
You can drive the car to the scrapyard if it’s still functional. Otherwise, arrange for towing. Many scrapyards offer complimentary towing services as part of their scrapping package.
Step 5: Receive Your Scrap Value
Once the car is assessed, you’ll receive an offer for its scrap value based on its weight, condition, and parts that can be recycled or resold. You’ll also receive your PARF and COE rebates separately through LTA’s system.
Step 6: Submit Proof of Scrapping
After your car is dismantled, the scrapyard provides proof of disposal. Submit this to LTA to finalize the deregistration and claim your rebates.
Factors That Affect the Scrap Value of Your Car
When you scrap your car, several factors determine how much you can receive:
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Car Age: The newer your vehicle, the higher your potential rebate.
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COE and PARF Rebate: If you deregister before COE expiry, you can reclaim part of the COE’s value.
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Weight and Material Value: The scrap price depends on metal demand and the car’s body weight.
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Condition and Reusable Parts: Engines, gearboxes, and electronic components that can be salvaged increase the car’s value.
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Market Trends: If certain car parts are in high demand, your scrap value might increase accordingly.
To maximize your returns, it’s a good idea to get multiple quotations from different scrapyards before deciding.
Common Mistakes to Avoid When Scrapping a Car
Even though scrapping seems straightforward, many car owners make costly mistakes. Here’s what you should avoid:
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Failing to Deregister Properly: Deregistration must be completed before scrapping.
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Ignoring Outstanding Fines or Loans: Clear all dues before scrapping to avoid delays.
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Using Unlicensed Scrapyards: Only approved scrapyards can legally handle deregistered cars.
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Forgetting to Remove Belongings: Once scrapped, your car and its contents are unrecoverable.
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Not Checking Rebate Eligibility: Missing out on rebates means losing money you deserve.
By avoiding these errors, you ensure a smooth and beneficial scrapping experience.
Environmental Benefits of Car Scrapping
Scrapping isn’t just a financial decision it’s also an eco-friendly one. Cars contain metals, plastics, and fluids that can harm the environment if not handled properly. Licensed scrapyards follow strict protocols to:
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Recycle Metals: Steel, aluminum, and copper are recovered and reused.
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Dispose of Fluids Safely: Engine oil, brake fluids, and coolants are drained and processed responsibly.
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Reduce Waste: Many parts are reused or resold, reducing landfill waste.
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Support Sustainable Manufacturing: Recycled materials are used to produce new vehicles and machinery.
This makes car scrapping a key part of Singapore’s broader effort to build a greener and more sustainable future.
Tips to Get the Best Value When Scrapping Your Car
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Plan Ahead: Don’t wait until your COE expires deregister early to qualify for rebates.
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Compare Offers: Different scrapyards offer different prices, so always shop around.
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Understand Rebate Calculations: Familiarize yourself with how LTA calculates COE and PARF rebates.
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Negotiate: Some scrapyards are open to negotiation if your car has valuable parts.
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Keep Maintenance Records: A well maintained car often fetches a better scrap rate.
These tips can help you make the most of your vehicle’s end-of-life process.
A Real-Life Example
Let’s say Mr. Lee owns a nine-year-old sedan nearing the end of its COE. Instead of paying for a renewal, he decides to scrap the car. He clears all outstanding loans, deregisters his vehicle, and contacts a licensed scrapyard. After a quick evaluation, he receives a fair offer for the scrap value, plus rebates from the remaining COE. Within weeks, Mr. Lee collects his payments and has peace of mind knowing his old vehicle was responsibly recycled.
The Future of Car Scrapping in Singapore
With the government pushing for greener transport options and the rise of electric vehicles, car scrapping will continue to play an essential role in managing the country’s automotive lifecycle. As more sustainable methods and technologies emerge, the scrapping process will likely become even more efficient and eco-friendly, benefiting both the economy and the environment.
Conclusion
Scrapping a car might feel like the end of a chapter, but it’s actually the beginning of something responsible and rewarding. The scrap car process in Singapore ensures that every vehicle is properly deregistered, dismantled, and recycled, offering car owners both peace of mind and financial return.
By understanding the procedures, preparing your documents, and working with a licensed scrapyard, you can turn what once was an old, depreciated vehicle into reclaimed value while helping to build a cleaner, more sustainable future.
