As your car nears its 10th and final year, it's time to decide whether you should export, scrap or renew your COE.
There's a lot to think about, especially if you're thinking of scrapping or exporting your car.
We've summed it up in seven digestible points:
- Should you scrap or export your car
- How to calculate deregisteration value
- Deregistering a COE car
- How to get a higher scrap value
- How to get a higher selling price with an exporter
- How exporters quote prices
- What happens when scrapping or exporting a car
From finding out your car's scrap value to learning about Singapore's car exporters and car scrap yards - it's all you need to know when deregistering your car for scrap.
1. Should you scrap or export your carExporting your car generally gets you more money compared to scrapping. PHOTO: sgCarMart
If COE renewal is out of the question, you're probably planning to deregister your car. But once you've successfully deregistered your car, should you scrap or export it?
Some people choose to export their car because it gets them more money, while others scrap their car because it's too old or in bad condition and exporters don't want it.
Regardless of whether you scrap or export your car, you'll get back money based on your car's deregistration value. Which brings us to the next thing you should know.
2. How to calculate deregistration value
Your car's deregistration value is the sum of your Certificate of Entitlement (COE) rebate and the Preferential Additional Registration Fee (PARF) rebate:
[COE rebate + PARF rebate] = Deregistration value
Deregistration value (aka paper value) is the sum of money you'll get back upon successful deregistration of your car.
Your PARF is dependent on your car's Open Market Value (OMV).
3. Will you get money when you deregister a COE car?If you buy a COE car, the de-registration value of your car equates to the unused portion of COE should you choose to sell it later on. PHOTO: sgCarMart
A COE car is a car that has its COE renewed for five or 10 more years instead of deregistering it after its original 10-year cycle.
And the answer is YES, you can get rebates from deregistering a COE car.
However, your deregistration value only comprises of your COE rebate (the unused portion of your COE).
PARF cars (cars that have yet to renew their COE), as we mentioned above, are entitled to PARF rebates on top of COE rebates.
This is one of the main differences between PARF cars and COE cars.
4. How to get a higher scrap valueIt may take some time to do the research, but it's worth it when you get more money at the end of the day. PHOTO: sgCarMart
You can calculate the scrap value of your vehicle like so:
[Deregistration value + Body value] = Scrap value
A car's body value is the amount that dealers/scrapyards give your car. Many factors can influence the body value of your car - general demand, market changes and even the model of your car for example.
If you're familiar with the concept of supply and demand, you can use this knowledge to own high scrap value cars.
Taking a look at the data from data.gov.sg, I found that:
In 2015, there were ~80,000 new car registrations
In 2017, there were ~120,000 new car registrations
Assuming a majority of these cars deregister their cars 10 years down the road in 2025 and 2027 respectively, cars in 2025 will have a higher body value because of the "under supply" of cars in 2015. So if you bought a car in 2015, great news!
Also, prices quoted by scrapyards may vary. You may need to check with five or more scrapyards to get the best price or a price that you're happy with.
If that sounds like a bother, get help to source for quotations from over 100 scrapyards and get the best price without wasting any time.
5. How to get a higher selling price with an exporter?
Depending on your car's make and model, some overseas dealers will be willing to pay top dollar for it.
Car exporters who sell cars to these overseas dealers are more than happy to give your car a higher selling price compared to scrapyards, but it needs to meet three basic requirements:
- Is your car a popular model?
- Is there a high demand for your car in the overseas market?
- Is your car still in good condition?
Should your car fail to meet these requirements, you won't get a high offer, or in some cases, some car exporters won't even take your car.
It's a tedious process, but you can get started today, and we'll get the best price for you instead!
6. How do exporters quote prices
Car exporters, like car scrapyards, have their own rates too.
Their rates depend on factors like the calculated profit margins for each car that they sell, overheads and their network with dealers from various countries around the world.
Across countries, the popularity and demand for each car may differ. Some cars may be sturdier for certain climates and naturally more valuable to an overseas dealer.
The quote that exporters offer you might have some wiggle room for negotiation if you go from exporter to exporter asking for their "best price". This is not something we recommend for people with busy schedules.
If you lack the motivation but want the best results, you can get the highest quotation from 100 direct vehicle exporters without having to leave your home/office.
7. What happens when scrapping or exporting a car?Exporting will always get you more money provided that there's a demand for your car. PHOTO: sgCarMart
We've simplified how scrap and export work into some key points:
Scrap your car
- You'll need to drive to an LTA-appointed car scrapyard and bring along the completed de-registration form for identification purposes.
- Once you've successfully de-registered and sent your car for scrapping, you'll need to find transport back home.
- The scrapyard pays you for the car body on the spot. However, you might not be paid much.
- To get your car's deregistration value from LTA, you'll need to sit tight and wait - LTA will get back to you in a couple of weeks about your rebates, and you'll see your money within the month.
Export your car
- Not only will you get a higher value, but you'll also receive immediate payment for your car, and you won't have to handle the paperwork - your exporter completes it for you.
- Exporters won't buy unpopular car models.
- You won't be selling your car directly to an exporter. The exporters usually work through intermediaries, like car dealers and agents for bulk orders, so they won't buy it from individuals.
- sgCarMart Quotz gets you the best quote for your car from our exporters.
Now that you're well aware of how scrap/export works, you can deregister your car with ease in the future!
This article was first published in sgCarMart.