Is your Car's COE term coming to an end? Thinking of scrapping or exporting your car instead of bidding for a new COE? 6 things that you should note before you scrap or export your car.
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 on the road. You will 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: Pricing depends on supply and demand
The value that you can get out of your car is dependent on various factors such as the supply/demand and the make/model. Compared to 2004 and 2005, there are about 10% lesser new cars being registered in 2007 and 2008. So when we do a ten years count down, in 2017 and 2018, less cars will be due to be scrapped which will result in an 'under supply' of car and in turn lead to a higher 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, value obtained is dependable on the make & model of your car.
Exporting your car will definitely fetch a better price as compared to scrapping your car. Essentially, selling your car to an exporter literally means that they are going to sell the car to dealers in other countries for you. However there will be some requirements that your car has to meet before you are able to sell it to an exporter.
Note that requirements may changes from time to time; the three below criteria are the common ones that we have observed so far.
- In Demand
- Good driving condition
If no exporter is willing to take in your car, then the next option would be to scrap your car at a scrapyard. This option will see your car being torn down for its spare parts and precious metal.
4: Offers from exporter varies
Different exporters will offer different prices even for the same car. This will depend on the contacts and countries each exporters deal with. For example, some countries might pay more for a particular brand of car more than other countries, hence the difference in price offers
At Motorist.sg, we can assist you in obtaining offers from multiple exporters to ensure you get the best possible deal for your car. Click here for more details.
5: Paper value = Total COE rebate + Total PARF rebate
What does it really means when you hear people talks about the paper value of the car? It is a simple equation that you have to remember.
Paper Value = Total COE rebate + Total PARF rebate
Second question would be, do you know how much is your car's paper value?
To find out the amount that you are able to get back as 'paper value', you can check it on LTA's website by clicking on this link. Take note, you will have to select the intended deregistration date and that 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 proceed to the last bit to complete the process.
Deregistering the car yourself
Pro: You will get the full paper value plus the road tax rebate.
Con: Ample Hassle and Effort Required.
First, drive your car to an LTA appointed scrapyard and arranging a return trip. The rebate will be stuck with LTA for about 3-4 weeks before eventually being released to your bank. To find out more about on the process of deregistering the car yourself, click here.
Sell Direct to Exporters
Pro: Additional body value.Hassle-free and Efficient! All paperwork will be sorted out and completed by them. You will receive the money immediately upon handling over the car, you don't have to wait and monitor when the money will be dispersed by LTA.
Con: There will be a 1-2% deduction from the paper value that acts as interest due to their money being stuck at LTA.