A Comprehensive Guide to Scrapping Your Car in Singapore
Do you have an old car that’s just sitting in your garage and taking up space? It’s time to consider scrapping your car in Singapore. Not only will it free up space, but it can also earn you some money. But how much can you get from scrap car in Singapore? Let’s find out.
COE Rebate: How is the Price of Scrapped Car Determined?
The scrap car value
Most car owners choose to scrap their car in Singapore when the COE is near its expiry date. However, some might want to scrap the car earlier to get more rebate from COE. However, there are some exceptions to this:
If you dispose of your vehicle for export after 2 years, different regulations apply to your vehicle.
If your vehicle is listed in the open COE category, the discount is based on the lower award contingent of the open category.
In general, the COE rebate can be calculated using the following formula:
COE Rebate = (Contingent Rewards Paid x Number of Months Remaining in your COE) / Total Months Purchased from COE
For instance, if you paid a quota premium of $35,000 for your COE and you decide to deregister your car in Singapore after 8 years and 10 months, here’s how you can calculate the COE rebate:
Number of months remaining COE = 10 years – 8 years 10 months = remaining 14 months
COE Rebate = ($35,000 x 14) / 129 months
You can get $3,798.45 back in COE rebates on your car!
However, if your COE expires before you unregister your car, you won’t receive the COE discount. At the same time, if you want to register a new car within 2 years of its registration, your COE rebate will be limited to 80% of the premium paid quota.
PARF Rebate: How Much Can You Get?
The PARF rebate is a percentage of the Additional Registration Fee (ARF), a tax credit that is differentiated based on the market value of the vehicle. The additional registration fee is considered part of the vehicle purchase price.
The PARF discount applies to cars that are less than 10 years old. In general, the more you pay for your car, the higher the PARF discount.
If your car is less than 10 years old, you are entitled to BOTH COE and PARF rebates. The PARF/COE discount is valid for 12 months from the date of vehicle deregistration. You have 12 months to redeem all PARF/COE discounts from the opt-out date before they expire.
How to Redeem Your Discount?
There are 3 different ways to redeem your PARF and COE rebates:
Use rebates to offset taxes and fees when registering a new vehicle
Transfer the discount to someone else
Scrapping your car in Singapore can be a practical decision that frees up valuable garage space while also earning you some cash in the process. Understanding the scarp car value and the components that determine the rebate that can be claimed, such as the COE and PARF rebate, is important to ensure that you get the most value for your old car. While the value of your scrap car is largely determined by these rebates, the way to redeem those rebates varies based on different situations. Nevertheless, it is important to do your research to understand how the rebates work in order to best optimize the returns that you can get. Therefore, consider visiting Scrap Car Singapore’s website at scrapcar.com.sg to learn more about how to scrap your car in Singapore and access the full range of services they offer.