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Important Things To Know Before Scrapping Your Car

Out with the old, and in with the new. If your car’s COE is ending, you might be thinking of scrapping or exporting instead of selling it. However, scrapping or exporting your car can be an overwhelming task. Luckily, we have compiled an easy guide to what you need to know before you scrap your car.

Plan early

First and foremost, plan in advance. Ideally, you should start your scrapping process at least a few weeks before your COE expires, as you will be subject to additional costs for towing your vehicle to the scrapyard once it does.

Scrap or export?


You will receive the full paper value (total PARF + COE rebate), on top of road tax rebate. However, the value obtained for scrapping your car depends on a number of factors such as car model and mileage, as well as the current supply and demand. 

(Related story: At What Mileage Does A Car Lose Value)

On top of that, it can be quite troublesome as you will have to drive your car to the scrapyard itself, and the rebate will be held by the LTA for 3-4 weeks before being released to you.


On the other hand, you might get a better price on your car by exporting it, and you will have to do far less yourself. The exporter will help you sell your car to overseas dealers, subject to your vehicle’s eligibility. 

However, this can also be risky due to the different supply and demand for car models in different countries. The price your car can fetch from exporting depends on key factors such as demand, driving condition, and model popularity.

 In addition,  a 1-2% deduction from the paper value will be incurred, which acts as interest to the dealers.

Disposal sites

You may choose to engage with a dealer to export/scrap your car for you, or you can choose to scrap your car yourself. Both have their pros and cons.

 As mentioned before, if you choose to engage with a dealer, they will handle everything after you agree on their quoted price and you will get your money immediately.


If you’ve decided on scrapping your car, you need to deregister your vehicle. Deregistering your vehicle entails giving up ownership of your car and surrendering it to your car disposal center. Failure to dispose of your vehicle or driving it post-deregistration may land you a fine, imprisonment, or both.

Before you deregister your vehicle, be sure to clear any outstanding car loans and road taxes!

Cancelling your insurance

As with clearing your car loans and road taxes, be sure to cancel your insurance before you proceed with scrapping your car. Doing so will prevent complications in your scrapping/exporting process such as being charged recurring payments.

Applying for encash for PARF and COE Rebate

Your next step will be to apply for encash for your Preferential Additional Registration Fee (PARF) and COE Rebate. These rebates compensate you for the rest of the time until your car’s COE expires, if your vehicle is eligible. 

PARF rebates are only eligible for cars not more than 10 years old and taxis not more than 8 years old, while COE rebates are for all vehicles with remaining COE.

You can calculate your PARF and COE rebate value on LTA’s website here

PARF and COE rebate application can be done in two ways:

  1. Apply on the One Motoring website with your SingPass 2FA.
  2. Apply at the LTA Customer Service Center at 10 Sin Ming Drive.

After you apply, you will receive the rebate in 2-4 weeks.

Ready to scrap?

Scrapping or exporting your car is a big decision. Keeping informed with these essential tips before you do so will not only help you get the best deal, as well as ensure the most fuss-free experience possible.

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