Hi Malek, you can choose to take out the IU or leave it in your car. But now there is an option to transfer your deregistered IU at an authorised IU service centre. The IU must be in good working condition, as deemed by the inspection centre, and must be transferred within six months from the registration date of the vehicle. It can only be transferred among vehicles in the same class. Transferring the IU costs about S$18.73 at VICOM, inclusive of GST.
It is much easier and faster to scrap your car through Motorist. You will get money for your car body and paper on the spot without having the need to send the car to a scrapyard and waiting 1-2 months for LTA to refund you the vehicle PARF. Selling it via Motorist will allow you to get cash on the spot with no work required on your part.