An In-Depth Guide on How to Scrap My Car: Everything You Need to Know

In this comprehensive guide, readers will gain a thorough understanding of the process of how to scrap my car in Singapore, covering everything from the reasons for scrapping a car to the steps involved in the process. This article aims to provide valuable insights and practical guidance for a vehicle owners considering to upgrade or have an old car to get rid off, ensuring that they are well-equipped to make informed decisions when it comes to scrapping their vehicles.

Why Should I Scrap My Car?

When it comes to deciding what to do with an old or unused car, scrapping it can be a practical and environmentally friendly option. There are several reasons why you might consider scrapping your car, including environmental benefits, financial incentives, and space and maintenance considerations.

Environmental Benefits of Scrapping a Car

One of the primary reasons to scrap a car is the positive impact it can have on the environment. Older vehicles are often less fuel-efficient and emit higher levels of pollutants, contributing to air and water pollution. By scrapping your car, you can help reduce harmful emissions and align with the Singapore Government’s push for sustainable practices. Singapore has set ambitious targets under its Green Plan to accelerate the transition to electric vehicles (EVs) and reduce emissions from the land transport sector. The key initiatives to phase Out Internal Combustion Engine Vehicles

• Singapore aims to phase out sales of new internal combustion engine (ICE) cars and taxis by 2030. This means only electric vehicles will be allowed for new registrations from 2030 onwards.
• New registrations of diesel cars and taxis will cease from 2025 to pave the way for greener vehicles.

Financial Incentives for Scrapping a Car

Singapore offers two main financial incentives for scrapping a car – the COE (Certificate of Entitlement) rebate and the PARF (Preferential Additional Registration Fee) rebate.

COE Rebate

If you deregister your car before the COE expires, you are eligible for a COE rebate based on the unused portion of the COE period. The rebate is calculated as:COE rebate = (QP paid x remaining months on COE) / Total months of COE periodWhere QP is the Quota Premium or Prevailing Quota Premium paid for the COE. For example, if you paid $50,000 for a 10-year COE and deregister after 8 years 6 months, the rebate would be ($50,000 x 18 months) / 120 months = $7,500.

PARF Rebate

If your car is under 10 years old at deregistration, you are eligible for a PARF rebate to recoup some of the Additional Registration Fee (ARF) paid when registering the car. The PARF rebate is based on the car’s age:

• Under 5 years: 75% of ARF paid
• 5 to <6 years: 70% of ARF paid
• 6 to <7 years: 65% of ARF paid
• 7 to <8 years: 60% of ARF paid
• 8 to <9 years: 55% of ARF paid
• 9 to <10 years: 50% of ARF paid
• Over 10 years: No PARF rebate
• The ARF is calculated based on the car’s Open Market Value (OMV) at a tiered rate, so more expensive cars get a higher PARF rebate if deregistered within 10 years.In summary, by deregistering your car before the COE expires and within 10 years of registration, you can receive a substantial portion of the upfront costs back as COE and PARF rebates, providing financial incentives to scrap older, more polluting vehicles

Space and Maintenance Considerations

Old or unused cars can take up valuable space in your garage or driveway. By scrapping your car, you can free up space for other purposes. Additionally, maintaining an old vehicle that is no longer in use can be costly and time-consuming. Scrapping the car can help you avoid ongoing maintenance expenses.

How to Prepare Your Car for Scrapping

Before scrapping your car, there are several important steps to take to ensure a smooth process.

Clearing Out Personal Belongings

Before handing over your car to a scrap yard, be sure to remove all personal belongings from the vehicle. Check the glove compartment, trunk, and any other storage areas to ensure that nothing important is left behind.

Obtaining Necessary Paperwork

You will need to gather important paperwork, such as the vehicle title and registration, before scrapping your car. These documents are typically easily retrieved from LTA website at https://onemotoring.lta.gov.sg/content/onemotoring/home.html and is required by the scrap car dealer to complete the transaction.

Removing License Plates and Canceling Insurance

It’s important to remove the license plates from your car before scrapping it. Additionally, be sure to cancel your car insurance policy once the vehicle has been scrapped to avoid any unnecessary expenses.

Finding a Reputable Scrap Yard

When it comes to choosing a scrap yard for your car, it’s essential to find a reputable and reliable dealer such as scrapcar.com.sg.

Researching Local Scrap Yards

Start your research on local scrap yards by focusing on CaseTrust Accredited Business in Singapore known for their fair and transparent business practices. Look for well-established businesses with a reputation for honesty. To gain further insight, explore their Google Business reviews or visit their Facebook business page for additional feedback and information. This step can provide valuable details to help you make an informed decision when choosing a scrap yard to work with.

Checking for Proper Licensing and Certifications

Ensure that the scrap yard you choose has the General Waste Disposal Facility (GWDF) license from the National Environment Agency (NEA) to operate legally. This can help protect you from potential liabilities and ensure that the scrapping process is conducted in compliance with regulations of Singapore.

Reading Customer Reviews and Testimonials

Before making a decision, take the time to read customer reviews and testimonials about the scrap yards you are considering. This can provide valuable insights into the experiences of other customers and help you make an informed choice.

The Process of Scrapping Your Car

Once you have selected a scrap yard, the process of scrapping your car typically involves the following steps.

Getting a Quote for Your Vehicle

Contact the scrap yard to get a quote for your vehicle. The quote will be based on factors such as the car’s make, model, condition, and current market value for scrap metal.

Arranging for Transportation to the Scrap Yard

Once you have accepted the quote, you will need to arrange for transportation of the vehicle to the scrap yard. Some scrap yards may offer towing services, while others may require you to deliver the car yourself.

Receiving a Certificate of Destruction and Payment

After delivering the car to the scrap yard, you will receive a Certificate of Destruction, which serves as proof that the vehicle has been permanently taken off the road. You will also receive payment for the value of the scrap metal in your car.

Conclusion

Scrapping a car can offer a range of benefits, including environmental advantages, financial incentives, and practical considerations. By following the steps outlined in this guide and choosing a reputable scrap yard, you can ensure a smooth and efficient scrapping process. Remember to clear out personal belongings, obtain necessary paperwork, and research scrap yards before making a decision. Figuring out the right approach on how to scrap my car in Singapore can be overwhelming if not done right therefore its wiser to leverage on a professional scrap car specialist for a more a positive and rewarding experience.