All cars in Singapore have an expiry date as derived by its Certificate Of Entitlement (COE). A COE enables you to drive your car on Singapore’s roads, and has a lifespan of 10 years. Once the COE has been expired, it can no longer be driven on Singapore’s roads, and thus is commonly scrapped for financial compensation.
Extending Your COE – an Alternative to Scrapping
It should be noted that scrapping is not your only option. When your COE is approaching its termination date, you can decide whether you should extend it. To extend your COE for another 10 years, you would have to pay the price of the COE. In return, you can continue driving your current vehicle on the road.
However, when you do decide to scrap your car, you would be receiving lesser financial compensation. This is because while you will still be entitled to receive the COE rebate and get compensation for your car’s scrap, you will not be receiving the PARF rebate. The PARF rebate is only given to vehicle owners who choose to scrap their car within the first 10-year cycle of their COE.
Given the drawback of choosing to extend your COE, we recommend that you only do so when your current car has tremendous value, financially or sentimentally. If not, scrapping your car within its first 10-year cycle is likely to yield you better overall returns.
Choosing to Scrap Your Car
If you have decided to scrap your car then the first thing that you will likely want to know is how to check scrap value of car Singapore. As mentioned before, the entire financial sum that you will receive consists of 3 components:
- COE Rebate
- PARF Rebate
- Car body scrap value
The COE rebate and PARF rebate are formulated and fixed based on the authorities. All exact calculations can be found on the One Motoring website.
On the other hand, the car body scrap value is determined by individual authorised scrap car dealers. The dealers are free to evaluate the value of your car’s body and to offer you a price at their discretion. While each dealer may have his or her own method for devising a suitable price for your car’s body, they generally rely on two factors:
- Supply and demand for your car model
- The condition of your car body
Each year, certain car models will become more valuable than others based on their supply and demand. If you are fortunate to be scrapping your car in a year where your car is in demand, then you are likely to receive higher offers across the board.
Your car’s condition is derived based on the mileage that it has covered as well as any defects that it may have obtained. In general, the lower its mileage on the road, the better condition it is deemed to have with less wear and tear.