Complete Guide on How to Scrap Your Car in Singapore
Are you wondering whether to renew your Certificate of Entitlement (COE) or scrap your car in Singapore? Renewing your COE can be expensive, but scrapping your car can bring you some profits. Here’s a full guide on how to scrap your car in Singapore and why it might be a better option for you. Learn how to calculate your car’s scrap value and how to maximize your returns.
Renewing Your COE vs. Deregistering Your Car in Singapore
In Singapore, owning and using a car requires a COE. After ten years, you can renew your COE by paying the Prevailing Quota Premium (PQP), or deregister your car. If you choose to deregister your car before the COE expiration, you may be eligible for COE and Preferential Additional Registration Fee (PARF) rebates. Deciding whether to renew your COE or deregister your car depends on several factors.
Calculate Your Car’s Scrap Value in Singapore: COE and PARF Rebates
How to Calculate Your Car’s PARF Rebate
Your car is eligible for a PARF rebate if it is not more than ten years old. Taxis can enjoy PARF rebates if they are not more than eight years old. The PARF rebate amount depends on your car’s age, and you can enjoy a higher PARF rebate if you deregister your car earlier. To enjoy the PARF rebate, your car must meet certain criteria, such as not being laid up and being registered in Singapore on or after 1 September 2007.
Criteria to Meet for the PARF Rebate:
Private/Company/Private Hire Cars/Off-Peak: Must be a new car at the time of registration or an imported used car registered in Singapore on or after 1 Sep 2007, not more than 10 years old at deregistration, and not laid up.
Taxis: Must be a new taxi at the time of registration, not more than 8 years old at deregistration, and not laid up.
Enquire about Your PARF Rebate Here
How to Calculate Your COE Rebate
You can enjoy a COE rebate if you deregister your car before the COE expiration. The COE rebate amount is based on your paid Quota Premium (QP) or the PQP for a renewed COE. When you deregister your car, the QP/PQP will be prorated based on the remaining number of months and days of your car’s COE. You will not be entitled to any COE rebates if your COE expires before you deregister your car.
The COE Rebate Formula:
COE rebate = (Quota Premium paid x number of months left on your COE) / Total number of months bought by COE
Example: If Andy paid a quota premium of $40,000 for his COE and decided to deregister his car after 6 years and 10 months, he would receive a COE rebate of $12,666.67.
Renewing Your COE After 10 Years in Singapore
Renewing your COE after ten years means losing your PARF value rebate and paying for the Prevailing Quota Premiums. For example, if your PARF value rebate is $17,000 and a new COE costs you $35,000, renewing your COE would cost you $52,000. This means that your car’s depreciation for the next ten years would be $5,200 per year. Remember that you have 12 months from the date of registered.