Scrap Car VS Renew COE: What Should You Do?
(Photo Credits: Straits Times)
After ten long years of service, your trusty metal steed has finally reached the tail-end of its lifespan. At this point of time, you’re probably standing at a crossroad; pondering if you should renew your car’s COE or forgo car ownership altogether.
For many, their beloved cars hold many fond memories that are hard to let go. For some, it might symbolize years of hardwork and determination. While for others, it may have been a loyal companion that accompanied them through different life stages.
Whatever the reason, a decision must be made. In this article, we’ll have a look at the process between scrapping your car and renewing its COE.
1) Apply for Deregistration
It is the vehicle owner’s responsibility to deregister and properly dispose of the vehicle. After the vehicle has been disposed of, the owner has to submit the vehicle disposal documents to LTA within 1 month from the vehicle deregistration date.
Do note that this deadline will be extended during the extended Circuit Breaker. More details can be found here.
When a vehicle is deregistered, it must be disposed of by either scrapping, exporting, or be pending to be exported.
Before this, it is important to make sure that you cleared any outstanding car loan and road taxes.
After the deregistering process, the owner is responsible for bringing these documents and the vehicle to an LTA-approved scrapyard. There are currently five LTA-approved scrapyards.
For users that are ineligible for SingPass/CorpPass, a visit to the LTA Customer Service Centre must be made.
2) Apply for PARF (Preferential Additional Registration Fee) and COE rebate
After deregistering your vehicle, you may be granted PARF/COE rebates, depending on the age of your vehicle and its COE expiry date.
It is an offence if you fail to submit the proof of disposal of your deregistered vehicle to LTA on time. It is also an offence to keep or use a deregistered vehicle.
3) Valuation from the Scrapyard
Apart from the PARF/COE rebates, you’ll still get money for the body of your car.
The LTA-approved scrapyard will perform the valuation of the physical components of your car.
Although the body provides the basis for valuation, the final valuation is primarily based on the make, supply and demand of the vehicle.
To find out more about what happens to your deregistered car at the scrapyard, you may wish to visit our previous article.
4) Should You Scrap Your Car?
The answer is “yes” if you’re willing to let go of your beloved vehicle. This is especially so if your vehicle has a long history of reliability issues.
If you do decide to scrap your car, Motorist can help you find the highest scrap valuation in less than 24 hours.
Through our online bidding platform, we can help you obtain the highest scrap value for your vehicle from our network of over 300 partners.
To get a complimentary quote, please enter your details below:
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COE Renewal Process
As most of you might already know, LTA announced that the COE bidding exercise will be suspended during the extended Circuit Breaker.
However, COE can still be renewed during this period. For car owners looking to renew their COE, the Prevailing Quota Premium (PQP) for May and June 2020 will be based on the average of the QP for the bidding exercises conducted in January, February and March 2020.
1) Renewing through OneMotoring
Unless you have excess money set aside (which most of us don’t), the option of renewing COE ourselves may be too taxing.
Moreover, you are required to handle the paperwork and procedures yourself, something that may be too inconvenient.
2) Through Motorist
If you require help with your COE renewal, kindly fill up the form below. Not only will we help you source for the lowest COE loan interest rates in Singapore, but we will also provide you with timely updates if your vehicle is affected by changes due to the Circuit Breaker.
Moreover, we will also handle all the paperwork and procedures for you! Currently, we are offering a complimentary pre-COE workshop check to our customers. This check will help you decide if your vehicle is suitable for COE renewal.
Schedule a free COE renewal consultation session!
3) Concluding Thoughts: Should You Renew Your COE?
So, should you renew your COE?
The answer should be “no” if your vehicle has a long history of reliability issues. It simply makes more sense to avoid the potential hefty repairs and invest in another vehicle.
However, if you deem that your vehicle is still roadworthy and in good condition, then you can perhaps consider renewing your COE. But do note that you will be forfeiting your existing PARF rebate.
Although your vehicle may no longer be eligible for PARF rebates after renewing, you’ll still receive COE rebates if you choose to scrap or de-register your vehicle before its COE term is up. Similar to a PARF vehicle, the rebate amount depends on the balance of your COE term.
Not only that, the road tax for COE vehicles are also higher as well. Additionally, the vehicle maintenance might be costlier in general too.
If you require assistance regarding your COE renewal amidst this turbulent and somewhat confusing time, our friendly colleagues will be really happy to assist. Don't worry, it's completely free of charge, with no obligations as well!
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