asked about Scrap/Export Car

almost 3 years ago

When my car's COE is expiring, do I need to clear the loan first before I can scrap or de-register the car?

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Shafiah

By law, your vehicle is required to be cleared of all financial obligations before it can be deregistered or scrapped. Meaning, all outstanding loans have to be paid up before the scrap or reregistration process can take place.

If you still have outstanding loans when your car's COE is expiring, Motorist.sg can help you by having our partners settle the loan on your behalf with your PARF & COE rebates, which are usually more than enough so you will not need to top up with cash.

When you scrap your car yourself, you have to pay up the loan in cash first as LTA will usually only refund you the rebates about 3 weeks later.

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almost 3 years ago