Is your car’s COE term coming to an end, and you’re thinking of scrapping or exporting your car instead of bidding for a new COE? Here are 6 things you should note before scrapping or exporting your vehicle.
1. Do not leave things until the last minute
Don’t leave scrapping or exporting your car until the very last minute. Once the COE expires, your car cannot be driven on the road. You will also incur additional costs such as towing it to the scrapyard. We recommend that you start making arrangements at least 2 to 3 weeks before the COE expiry date.
2. The scrap value of your car depends on supply and demand
The value that you can get out of your car is dependent on various factors such as the supply and demand, and the make and model . In 2007 and 2008, there were about 10% less new cars being registered as compared to 2004 and 2005. This means in 10 years, fewer cars will be scrapped, and as a result will lead to an “under supply” of cars. This in turn leads to a higher scrap value for the body of your car.
3. Exporting your car will fetch you a better price than scrapping
As briefly touched on in the earlier point, the value obtained is dependable on the make & model of your car.
Exporting your car will definitely fetch a better price as compared to scrapping. For those unaware, an exporter will help you sell your vehicle to dealers in other countries. However, your car has to meet several requirements before being exported.
Kindly note that requirements may change from time to time, however, the three criteria below are the most common ones we have observed thus far.
- Popularity
- Demand
- Driving condition
If no exporter is willing to take in your car, then the next option would be to send your car to a scrapyard. This option will see your car being torn down for its spare parts and precious metal.
4. Offers from exporters will vary
Different exporters will offer different prices for the same car. This depends on the contacts and countries each exporter deals with. For example, some countries might pay more for a particular brand of car more than other countries, hence the difference in price.
At Motorist, we will assist you by obtaining offers from multiple exporters to ensure you get the highest and best possible deal for your car.
Click here to receive a non-obligational quote from us!
5. Paper value = Total COE rebate + Total PARF rebate
Confused over the term “paper value”? It is actually a fairly simple equation:
Paper Value = Total COE rebate + Total PARF rebate
The next question you’re probably asking is: “How do I find out the COE and PARF rebates for my car?”
To find out this amount, visit LTA’s website by clicking on this link. Alternatively, you could also download the Motorist App and add your vehicle in. The app will automatically compile all the necessary vehicle details from LTA for you.
If you’re using LTA’s website, kindly note you will have to select the intended de-registration date. The amount varies, depending on the date you select.
6. De-registering the car
Now that you understand the factors for de-registering your car, let’s discuss the pros and cons of scrapping and exporting.Scrapping the car yourself
Pro: You will get the full paper value plus the road tax rebate.
Con: Process can be quite tedious and troublesome.
You would need to drive your car to an LTA-appointed scrapyard and arrange a return trip. Any rebates will be held by LTA for about three to four weeks before being released to your bank.
To find out more about on the process of deregistering the car yourself, click here.
Sell direct to scrapyard/exporters
Pro: Additional body value. Hassle-free and efficient! All paperwork will be sorted out and completed by the scrapyard/exporter. You will receive the money immediately upon handing over the car, you don’t have to wait and monitor when the money will be released by LTA.
Con: There will be a 1-2% deduction from the paper value that acts as interest due to the money being stuck at LTA.
If you still have concerns over the scrap or export value of your car, kindly enter your details below to schedule an obligation-free consultation with us.
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Keyword: 6 Things to Note Before Scrapping Your Car