In Singapore, all car owners are required to have a certification of entitlement (COE) when they purchase a brand new car. The COE carries with it a 10 year period during which the car is licensed to be driven on the road. When the full duration of this period is approaching its end, car owners have a choice to make.
In this case, you could either choose to renew your COE or to scrap your car. If you fail to take either of these options, and continue to drive your car on the road, then you would be violating the law.
Choosing Between Renewing & Scrapping
Typically, owners decide between renewing or scrapping based on the condition of the car. If the car has endured its fair share of wear and tear, then the common choice would be to scrap it. This is because it would be risky to continue to drive a car that is in poor condition. It adds unnecessary risk to your daily life.
On the other hand, if you choose to scrap your car, you will be letting go of an asset that you may share sentimental value with. Additionally, you may need to get a replacement car together with a new COE.
COE Rebate & PARF Rebate
If you are scrapping your car within its first 10 year COE cycle, then you will be eligible to collect both COE rebate and PARF rebate.
The COE rebate is applicable for all vehicles that have an existing COE. The longer the duration remaining in your current COE period, the more COE rebate you will receive.
On the other hand, PARF rebates are given for cars that are not more than 10 years old and taxis that are not more than 8 years old. Similar to how the COE rebate works, the newer your car or taxi is when you deregister, the more PARF rebate you will receive.
Choosing The Right Car Scrap Dealer
How to scrap my car? The car scrapping process can be confusing with plenty of misleading information found online.
If you have decided to scrap your car, then you will need to work with an LTA authorised agent to initiate and complete the car scrapping process. At this point, it should be noted that not all car scrap dealers are equal.
4 factors are generally considered when choosing the car scrap agent:
- The price offered for your car is of chief concern. Depending on the condition of your car as well as market demand for your car model, dealers would offer you varying prices for your car body.
- The location of the dealer should be in close proximity to your home or office.
- The dealer should offer fair terms in their contract offer.
- Reviews should be considered as you want an experienced dealer who will make your process a hassle free one.
Once you have picked the car scrapping agent for you, listen to their advice and follow their instructions for a straightforward experience.