Scrap Car Singapore: A Complete Guide to Disposing Your Vehicle the Right Way
Owning a car in Singapore comes with a set of unique challenges—from rising COE prices to strict lifespan limits. At some point, every vehicle owner must make a decision: renew the COE, sell the car, or scrap it. If your vehicle is reaching the end of its Certificate of Entitlement (COE) period or is no longer worth the cost of maintaining, it may be time to consider the Scrap Car Singapore route. Scrapping your vehicle properly is not just a legal obligation, but also a financially smart move when done through the right channels. In this guide, we break down the entire process of scrapping your car in Singapore, what you stand to gain, and how to avoid common pitfalls.
What Does “Scrap Car” Mean in Singapore?
In Singapore, “scrap car” refers to the legal process of permanently deregistering a vehicle and ensuring its proper disposal through an LTA-authorised facility. The Land Transport Authority (LTA) requires all cars that are deregistered to be either scrapped, exported, or stored in a bonded warehouse. If you choose to scrap your car, it will typically be dismantled for recyclable materials or used parts. Failing to scrap a car properly or within the required time frame can result in the loss of rebates and potential penalties from the LTA.
When Should You Scrap a Car in Singapore?
Most car owners choose to scrap their car when their COE is about to expire. Since the COE in Singapore only lasts for 10 years (with optional renewal for another 5 or 10 years), many choose to deregister and scrap the car before the COE ends. Other common reasons to scrap a car include high repair costs, poor resale value, accident damage, or simply wanting to upgrade to a newer model. If your vehicle is no longer roadworthy or is costing you more than it’s worth, scrapping is often the best option.
Benefits of Scrapping Your Car
Scrapping a car in Singapore isn’t just about meeting legal requirements—it can be financially rewarding as well. When you deregister and scrap your car, you may be eligible for several benefits, including: COE rebate – if you deregister your car before the COE expires, you’ll receive a pro-rated rebate for the unused COE period; PARF rebate – available if your car is deregistered within 10 years of registration; Scrap value – paid by the scrap yard for the car’s metal and usable parts; Export value – for cars that are exported instead of scrapped. These rebates and returns can add up to thousands of dollars, making scrapping a practical option for aging vehicles.
Step-by-Step Process to Scrap Car Singapore
Step 1: Decide if Scrapping is Right for You
Assess your vehicle’s age, condition, and cost of COE renewal. If the cost of renewing the COE is higher than the value of the car, scrapping may be the smarter move. Use LTA’s ONE.MOTORING portal to check rebate eligibility.
Step 2: Deregister Your Vehicle with LTA
Log in to the ONE.MOTORING portal using Singpass and submit a request to deregister your car. This process is mandatory before any scrapping or exporting can take place. Once deregistered, you must dispose of the vehicle within 30 days.
Step 3: Choose a Licensed Scrap Yard or Exporter
LTA requires that all scrapped vehicles be disposed of by authorised scrapyards or exporters. You can find a list of approved scrap yards on the ONE.MOTORING website. Choose one that offers a fair quote and provides an official disposal certificate.
Step 4: Arrange for Towing or Drop-Off
Some scrap yards provide free towing services, while others may require you to deliver the car. Confirm these details in advance to avoid extra charges.
Step 5: Return Your License Plates
After scrapping your car, you must return the vehicle’s front and rear license plates to an LTA-appointed facility. This step is mandatory and must be completed to finalise the process.
Step 6: Apply for Rebates
After disposal, you can apply for COE and PARF rebates via the ONE.MOTORING portal. Rebates will be credited to your bank account once approved.
Step 7: Receive Scrap Payment
In addition to government rebates, you’ll also receive a payment from the scrap yard or exporter. This is based on the scrap metal value or export resale value of your vehicle.
What Documents Are Required?
To ensure a smooth scrapping process, prepare the following documents: vehicle log card (e-log), NRIC or passport, LTA deregistration notice, loan settlement letter (if applicable), service records (optional), number plates (to be returned), signed agreement with scrap yard or exporter. Having these documents ready speeds up the transaction and ensures you receive your rebates promptly.
How Much Can You Get When You Scrap a Car in Singapore?
The total amount you receive will depend on several components: COE rebate – calculated based on the unused months of your current COE; PARF rebate – applicable only if the car is deregistered within 10 years of first registration; Scrap value – determined by the weight and metal content of the vehicle; Export value – applicable if your car is in good enough condition to be sold overseas. On average, you could receive anywhere from a few hundred dollars to several thousand, depending on your vehicle’s make, model, and condition.
Why Use an Online Scrap Car Platform?
Rather than negotiating individually with scrap yards, using an online car platform like Direct Cars offers key advantages: instant valuation – receive a quick estimate based on current scrap metal rates and market demand; access to multiple offers – compare scrap quotes from a network of LTA-approved partners; end-to-end support – from deregistration to plate return, the platform handles all paperwork and logistics; secure payment – funds are transferred directly to your account upon successful scrapping. This hassle-free process saves time, ensures legal compliance, and maximises your return.
Tips to Maximise Your Scrap Car Value
Get Multiple Quotes
Don’t accept the first offer you receive. Use a platform or contact several scrap yards to compare prices.
Remove Aftermarket Accessories
If your car has aftermarket rims, speakers, or navigation systems, remove them before scrapping. You can sell these parts separately.
Use Up Your Road Tax and Fuel
Maximise usage of your road tax and fuel before scrapping the car. You’ll only receive a rebate on the unused portion of your road tax.
Keep All Receipts
Document everything related to the scrapping process, including towing receipts, disposal certificates, and rebate claims, in case of disputes or follow-ups.
Common Mistakes to Avoid
Missing the 30-Day Disposal Deadline
After deregistering your vehicle, you have 30 days to scrap or export it. Failing to meet this deadline may result in penalties or forfeiture of rebates.
Using an Unlicensed Scrap Yard
Always verify that the scrap yard or exporter is LTA-approved. Using unlicensed operators can result in compliance issues and lost payments.
Forgetting to Return License Plates
License plate return is a mandatory part of the scrapping process. Ensure both front and rear plates are returned to complete the transaction.
Not Claiming Rebates
You must apply for your PARF and COE rebates after scrapping. Forgetting or delaying this step can reduce your financial return.
Frequently Asked Questions (FAQ)
Can I scrap my car before COE expiry?
Yes, you can scrap a car at any time. If you scrap it before COE expiry, you will receive a pro-rated COE rebate for the unused months.
What if my car still has a loan?
You must settle your outstanding loan with the bank before you can deregister and scrap your vehicle. A loan settlement letter will be required.
Can I export my car instead of scrapping?
Yes, exporting is an alternative if your car is in good condition and has overseas resale potential. You must still deregister the car through LTA first.
How long does the whole process take?
From deregistration to rebate payment, the entire process typically takes between 3 to 10 working days depending on the scrap yard and bank processing time.
Is there a best time to scrap a car?
It’s ideal to scrap your car just before COE expiry to maximise usage and still claim your rebate. Avoid waiting until the last minute.
Final Thoughts
If you’re searching for a reliable and straightforward way to scrap car Singapore, the key is to follow a structured and transparent process. Deregister your vehicle on time, choose a licensed scrap yard, ensure all documents are in place, and claim your COE and PARF rebates. Using a trusted online platform like Direct Cars makes the process even easier, helping you get the best value with the least amount of effort. Whether your car has reached the end of its life or you simply want to avoid the high cost of COE renewal, scrapping is a practical and financially sensible decision. Start with an instant online quote and let the professionals handle the rest.
