A scrap car Singapore process is more than just disposing of an old vehicle—it’s about maximising value, reducing waste, and following regulations. Whether your car’s COE is expiring, repair costs are too high, or you simply want to upgrade, understanding the scrapping process ensures a smooth and rewarding experience.
When Should You Scrap Your Car in Singapore?
Scrapping a car isn’t always the first choice, but in many cases, it makes the most financial sense. Here’s when you should consider it:
✔ COE Expiry
Most car owners scrap their vehicle before or when their Certificate of Entitlement (COE) expires after 10 years.
✔ High Maintenance & Repair Costs
If constant repairs are burning a hole in your wallet, scrapping may be a more practical option.
✔ Depreciating Resale Value
As your car ages, its market value drops. Sometimes, scrapping provides better returns than selling it second-hand.
✔ Severe Damage or Accident
If your vehicle has been in a serious accident, scrapping it may be the only viable choice.
✔ Upgrading to a New Vehicle
If you’re planning to buy a new car, scrapping the old one can help recover some costs through rebates.
“Car owners often overlook the benefits of scrapping before COE expiry, missing out on rebates and better scrap values.”
How to Scrap a Car in Singapore: Step-by-Step Guide
1. Deregister Your Car with LTA
- Before scrapping, you must deregister the vehicle via the Land Transport Authority (LTA).
- If your COE has not fully depreciated, you can apply for a COE rebate.
2. Choose a Licensed Scrapyard or Exporter
- LTA-approved scrapyards ensure that your vehicle is disposed of legally and safely.
- Car exporters may offer better rates if your car still has value in overseas markets.
3. Get a Quotation for Your Scrap Car
- Contact multiple scrapyards or exporters to compare offers.
- Factors that affect the price include brand, model, condition, and metal value.
4. Deliver the Car to the Scrapyard
- If the car is still drivable, you can drive it there yourself.
- Some scrapyards offer free towing services for non-functioning vehicles.
5. Receive Payment & LTA Confirmation
- Once the vehicle is scrapped, you’ll receive official confirmation.
- Any applicable rebates from LTA will be processed and refunded.
How Much Can You Get for Scrapping a Car?
The amount you receive depends on several factors:
💰 COE Rebate
If your COE still has time left, you can claim a refund.
💰 PARF Rebate
If your car is under 10 years old, you may be eligible for a Preferential Additional Registration Fee (PARF) rebate.
💰 Scrap Metal Value
The metal components of your car can be recycled, contributing to the scrap value.
💰 Parts Salvage Value
Some scrapyards may offer extra payment for valuable parts like catalytic converters and engines.
Example Calculation:
A 9-year-old car with remaining COE could receive both a COE and PARF rebate, along with a scrap value, significantly reducing the cost of upgrading to a new vehicle.
Alternatives to Scrapping Your Car
🚗 Sell to a Used Car Dealer
If the car is still roadworthy, selling it second-hand may yield a better return.
🚗 Export to Overseas Markets
Some countries have demand for second-hand Singaporean cars, particularly in developing markets.
🚗 Trade-in for a New Car
Some dealerships accept old cars as part of their trade-in deals.
🚗 Repurpose or Recycle Parts
Certain parts, like the battery, tyres, and audio system, can be salvaged and resold separately.
Avoid These Common Mistakes When Scrapping a Car
🚫 Forgetting to Claim COE or PARF Rebates
Ensure you claim all applicable rebates before scrapping.
🚫 Accepting the First Offer
Compare multiple scrapyard and exporter quotes to get the best deal.
🚫 Leaving Personal Belongings Behind
Check the car thoroughly before handing it over.
🚫 Not Cancelling Insurance
Cancel your insurance policy after deregistration to avoid unnecessary charges.
Environmental Benefits of Scrapping a Car in Singapore
Singapore has strict vehicle disposal and recycling policies to ensure minimal waste. When scrapping a car, various components are recycled:
♻ Metal Body
Melted down and reused in manufacturing.
♻ Engine & Transmission
Rebuilt and sold as second-hand parts.
♻ Batteries & Electronics
Processed separately to prevent toxic waste contamination.
By choosing an authorised scrapyard, you contribute to a more sustainable automotive industry.
Frequently Asked Questions (FAQs)
1. How long does the scrapping process take?
- Once the car is deregistered and delivered to the scrapyard, processing usually takes a few days to a week.
2. Can I scrap my car before COE expiry?
- Yes! If you scrap early, you can claim unused COE value.
3. What happens if I don’t scrap my car after deregistration?
- If you deregister your car but fail to scrap or export it, you may face fines and penalties from LTA.
4. Can I remove parts before scrapping?
- Some scrapyards allow owners to remove valuable parts, but always confirm before proceeding.
Conclusion: Making the Right Choice for Your Scrap Car in Singapore
Whether you’re looking to maximise rebates, get the best scrap value, or ensure an eco-friendly disposal, understanding the scrap car in Singapore process is crucial. By following the right steps and avoiding common mistakes, you can get the best deal while contributing to a more sustainable future.
