From Dealer to Scrap Yard: Key Events when Scrapping your Car in Singapore

Key Highlights

• In Singapore, car owners are responsible for properly de-registering their vehicles before selling them or delivering them to a scrapyard.
• You can typically get a higher scrap value for your vehicle by going through a scrap car dealer rather than going through the vehicle deregistration process yourself.
• When you choose to scrap your car, you can receive a COE rebate and may be eligible to receive a PARF rebate.
• After your vehicle is de-registered, you have one month to report to the LTA that your end-of-life vehicle (ELV) has been scrapped. Otherwise, you could face fines or even imprisonment!
• If you don’t want to scrap your car, you can export it or sell it to a private buyer.

Introduction

If you are close to the end of your COE (certificate of entitlement) or want to get rid of your old car, you might be curious about how to scrap your car in Singapore. The process is quite simple, whether you’re driving a Toyota, Honda, Hyundai, Mazda, Tesla, BYD or popular cars available in Singapore. However, there are some key points to remember about depreciation. This is important if you want to get the most out of your COE rebate, claim your PARF rebate (if you qualify), and make sure all your road taxes are paid.

Understanding the Car Scrapping Ecosystem in Singapore

The car scrapping process is usually managed by the car owner. Once they finish the steps for de-registering, they need to find a scrap yard that is approved by the LTA to accept their vehicle. These scrapyards can be found in various locations across Singapore, including Yio Chu Kang Road and Punggol Drive.

If car owners don’t want the hassle of de-registering their car and searching for a scrap yard, they can choose to work with scrap car dealers. These dealers buy cars that owners want to scrap and take care of the registration and scrapping process for them.

The Role of Dealers and Scrap Yards

Scrap car dealers and scrap yards are both important in the car scrapping system in Singapore. It’s vital to know the difference between them. Scrap yards are places where they dismantle and crush scrap cars and other vehicles, guiding you through the entire process. They salvage recyclable metals like steel and aluminum from the automotive components and sell them to companies that recycle it and use it for other products.

Scrap car dealers serve as middlemen. They connect car owners who want to scrap their cars with the scrap yards. By selling your car to a scrap dealer, you can get immediate payment and skip the process of de-registering your vehicle.

For car owners, working with a scrap car dealer is often more convenient and less stressful. Just make sure the dealer you choose is reliable and gives you a fair car scrape quote for your vehicle.

Regulations Governing Car Scrapping

The Land Transport Authority, or LTA, manages the car scrapping industry in Singapore. Before you can scrap your vehicle, you need to de-register it with the LTA. They offer clear rules about the necessary documents needed to sell your car to a scrapyard or scrap car dealer.

You can de-register your car online at the LTA’s OneMotoring website. If you would rather do it in person, you can make an appointment at one of their customer service centers.

Remember, if you sell your car to a dealer or a scrapyard without de-registering it, you could face a fine or even imprisonment by the LTA!

Now that you know a bit more about the car scrapping process in Singapore, let’s go through the steps. These steps will help you assess your vehicle and get it ready for scrapping.

Preparing Your Car for Scrapping

Taking some time to prepare before you go to the scrapyard or see a dealer can make the process easier. It will help you feel more relaxed and confident.

Assessing Your Vehicle’s End-of-Life Status

The first thing you should do if you think about scrapping your car is to check its condition. You need to figure out if it is better for you to scrap your car or sell it.

If your car’s body is badly damaged, the windscreen is cracked, the undercarriage is rusted, or it needs a lot of expensive repairs, scrapping it may be a smart choice. To find out your car’s value for scrap, you can ask scrap car dealers for quotes. They will give you an estimated quotation based on things like your car’s make, model, age, and condition.

Getting a professional inspection of your car can help you see any hidden problems. This way, you can make a better decision.

Necessary Documents for Car Scrapping

When you sell your vehicle to a scrap car dealer or de-register it yourself, it’s important to collect the necessary documents. The documents you need will depend on if the vehicle is owned by you or a business.

If you are an individual, you must have the original copy of your original NRIC. You will also need your vehicle’s registration number. Remember to show proof that you returned your license plates to the LTA. You might also need documents like your vehicle log card and car insurance details. You can find a complete list of required documents on the LTA’s OneMotoring website.

By getting all the necessary documents ready before you start, you can have a smooth and easy process when you scrap your vehicle.

The Financial Aspects of Car Scrapping

After you figure out how much your old car is worth and get the needed paperwork, the next thing to consider is the money side of scrapping your car.

Remember, you might be able to get a PARF rebate and a COE rebate when you scrap your car. You can find more details about those below.

Calculating Your Car’s Scrap Value

Your car’s scrap value is determined by a number of factors, but the most important factors include the make, model, and year of your vehicle. Scrap car dealers may also consider the overall condition of your vehicle, including its mileage and whether or not it has any major damage.

Keep in mind that you will only be eligible to receive the preferential additional registration fee, commonly known as the PARF rebate, if your vehicle is less than 10 years old.

Factor	Description
Make and Model	Vehicles from luxury brands and those with higher demand in the used car market tend to have a higher scrap value. For example, a Tesla might fetch a higher price than a BYD.
Age	As a general rule of thumb, the older the vehicle, the lower the scrap value.
Mileage	Cars with lower mileage have a higher scrap value.
Condition	Vehicles with minimal damage and wear and tear are likely to get a higher scrap value.
Demand for Used Car Parts	If your vehicle’s parts (like the catalytic converter) are in high demand, the scrap value may increase.
Preferential Additional Registration Fee	If your vehicle is less than 10 years old, you are eligible for this rebate, which will be factored into the overall scrap value. You will need to de-register your vehicle before your COE expires to be eligible for a PARF rebate, however.

Understanding PARF and COE Rebates

One key financial point about scrapping your car is the PARF rebate and the COE rebate. These rebates can help you save money if you qualify. The PARF rebate aims to encourage vehicle owners to cancel their outstanding car loans and car registration before the COE runs out. How much you receive depends on a percentage of the extra registration fee you paid when you registered your car.

Besides the PARF rebate, you will get a COE rebate too. This rebate is based on how much time is left on your COE. The longer the time remaining, the bigger your rebate will be. Remember, the value of your car goes down over time. So, to make the most money, it’s better to scrap your vehicle sooner rather than later.

The Car Scrapping Process Step-by-Step

If you want to scrap your car, whether by yourself or with a scrap car dealer, it’s good to know the basic steps first. The process is not too hard. However, you will need to gather the right documents and meet the requirements of the Land Transport Authority.

De-registering Your Vehicle in Singapore

The first step to deregister a vehicle is to go to the Land Transport Authority. You can do this online at the LTA’s OneMotoring website. To get started, you need to create an account and log in with your SingPass.

Remember, you have to get your vehicle inspected at an LTA-approved inspection center before you can finish the online deregistration. During the inspection, the inspector will check if your vehicle meets the safety standards needed for deregistration and scrapping.

After the inspection, you will get a vehicle inspection report. You will need to include this report with your online deregistration application.

Selecting a Certified Scrap Yard or Dealer

If you work with a scrap car dealer, they will take care of the deregistration and scrapping steps for you. Once you agree on their car valuation, they usually give you an immediate payment and pick up your vehicle.

If you prefer to do it yourself and might get a little more money for your car, you can deregister it through the LTA. To retain the registration number of your vehicle, you can also find a scrap yard on your own. The LTA website has a list of all certified scrap yards in Singapore, so it’s easy to locate a good scrap yard near you.

Finalizing the Scrap Transaction

When you work with a scrap car dealer, the last step is easy. Just give them your car details and the necessary documents. Then, you will get your immediate payment and say goodbye!

If you decide to handle the scrapping yourself, you need to set up a time to take your vehicle to the scrap yard or contact a scrap car agent like us to come to you. Remember to bring all the needed documents. The scrap yard will not take your vehicle without them! Usually, after they have your car and the documents, they will pay you in cash or through a bank transfer based on your agreement.

The Scrapping Process: What Happens to Your Car

Once your car reaches the scrapyard, it goes through several stages:

1. Fluid Removal: All fluids, including engine oil, coolant, and fuel, are safely drained and disposed of or recycled.
2. Parts Removal: Valuable parts that can be reused or sold are removed. This might include the battery, catalytic converter, and other components in good condition.
3. Dismantling: The car is systematically taken apart, separating different materials like plastic, glass, and various metals.
4. Crushing: What remains of the car body is crushed to reduce its size for easier transport and processing.
5. Shredding: The crushed car is then shredded into small pieces, allowing for easier separation of different materials.
6. Material Separation: Advanced technologies are used to separate different types of metals (like steel and aluminum) and other materials.
7. Recycling: The separated materials are sent to respective recycling facilities. For instance, steel and aluminum are melted down and reused in new products, while rubber from tyres can be repurposed for various applications.

This process ensures that as much of your end-of-life vehicle (ELV) as possible is recycled or reused, minimizing waste and environmental impact.

Alternatives to Scrapping Your Car

If you think scrapping your car is not the best choice, don’t stress. There are other options besides scrap yards and dealers. When you want to sell your car, many choices are there for you. Each option has some good points and some bad points.

What are the benefits of scrapping a car in Singapore?

Scrapping a car in Singapore helps free up space, reduces pollution, and earns you some money. It’s an environmentally friendly choice that can also provide financial incentives through rebates and tax benefits. Car scrapping services in Singapore make the process convenient and hassle-free.

Here are two alternatives to think about.

Selling Your Car Prior to Scrapping

If your car is in good shape and you want to sell it instead of scrapping it, you can! There are many online places where you can list your old car for sale. Websites like Carousell and sgCarMart help car owners find buyers.

A big plus of selling your car on your own is that you may get a better car valuation than if you sell it to a scrapyard or scrap car dealer.

But, remember to think about the time, effort, and money you need to put into selling your vehicle by yourself.

Exporting Your Car Overseas

Did you know you can send your car to another country instead of throwing it away? Exporting your vehicle is a good option if your car is still in good shape. It’s even better if you already have a buyer in another country.

In Singapore, there are companies that help with car exports. These companies are known as exporters. To export your car, you need to work with one of them. They will help you step by step. You will first need to cancel your car’s registration with the LTA. Then, they will help you arrange for your car to be taken to an Export Processing Zone, or EPZ.

The exporter will make sure your car follows the import rules of the country where it is going.

Conclusion

In Singapore, knowing how car scrapping works is very important. You need to check if your vehicle is at the end of its life and find out how much money it can bring you as scrap value. This guide will help you with every important part of the process, from understanding the value of your car to knowing what happens to its catalytic converter and tyres. By following the steps, you will feel more sure about car scrapping. It’s also important to pick a certified scrap yard or dealer for a smooth experience. If you are looking for other options, think about selling your car instead of scrapping it or selling it to a dealer overseas. When you are ready, get quotes from trusted dealers. This will help you make the right choice for your car’s last journey, whether it ends up being dismantled or crushed into recyclable metals at a local scrapyard.

Frequently Asked Questions

What If My Car Still Has a Valid COE?

If you decide to scrap your car before the COE runs out, you can still get a COE rebate. This rebate is based on how much time is left on your COE. When this happens, the car owner gets money from the dealer for the scrap value of the car. They also receive the COE rebate because they have deregistered the vehicle.

Can I Retain My Car’s License Plate After Scrapping?

You cannot keep your registration number once your car is scrapped. Before you scrap your vehicle, you must give your license plates to the Land Transport Authority.

How to decide whether to renew COE or sell to a scrap car dealer?

If you are thinking about whether to renew your COE or sell your car to a scrap car dealer, you should think about a few things. First, look at the COE rebate amount. Next, check the car valuation from the scrap car dealer. Finally, consider the total cost of renewing your COE.

What parts of my car are recyclable?

Most parts of your car are recyclable. The steel and aluminum from the body and engine can be melted down and reused. Tyres can be shredded and used in construction materials. Even fluids like engine oil can be refined and reused. The catalytic converter, which contains precious metals, is particularly valuable for recycling.

Are there any environmental benefits to scrapping my car?

Yes, there are significant environmental benefits to scrapping your car properly. It ensures that hazardous materials are disposed of safely, and that recyclable materials are recovered and reused. This reduces the need for new raw materials and helps to minimize waste. Additionally, removing older, less efficient vehicles from the road can help reduce overall vehicle emissions in Singapore.