If you’re wondering, how to scrap my car, you’re not alone. Many car owners in Singapore reach a point where maintaining an old vehicle becomes costly, or their Certificate of Entitlement (COE) is about to expire. Scrapping a car isn’t just about getting rid of it—it’s about maximising rebates, securing the best price, and ensuring an eco-friendly disposal. This guide will walk you through every step, so you don’t leave money on the table.
When Should You Consider Scrapping Your Car?
Scrapping a car is a decision that often comes down to practicality and cost-effectiveness. Here’s when you should consider it:
✔ Your COE Is Expiring – In Singapore, most car owners choose to scrap or renew their COE before the 10-year mark.
✔ Repairs Are Too Expensive – If fixing your car costs more than its value, scrapping might be the better choice.
✔ The Resale Value Is Too Low – Older cars depreciate quickly. If selling it won’t get you much, scrapping could be a smarter move.
✔ Your Car Has Been in an Accident – Heavily damaged cars usually have little resale value.
✔ You’re Buying a New Car – Some people scrap their old cars to offset the costs of a new one.
“A car is an asset—but when it starts costing you more than it’s worth, scrapping becomes the logical choice.”
Step-by-Step Guide on How to Scrap My Car in Singapore
1. Deregister Your Car with the Land Transport Authority (LTA)
- Before scrapping, you must deregister your car via LTA.
- If your COE hasn’t fully depreciated, you can apply for a COE rebate.
- If your car is under 10 years old, you may also be eligible for a PARF rebate (Preferential Additional Registration Fee).
2. Find an Authorised Scrapyard or Exporter
- LTA-approved scrapyards handle official vehicle disposal and recycling.
- Car exporters may offer better rates if your car still has demand in overseas markets.
3. Get a Scrap Quotation
- Reach out to multiple scrapyards and exporters to compare offers.
- The scrap value depends on factors such as make, model, age, condition, and demand for spare parts.
4. Arrange for Car Delivery or Towing
- If your car is still in running condition, you can drive it to the scrapyard.
- If it’s not operational, some scrapyards offer free towing services.
5. Receive Your Payment & LTA Confirmation
- Once the scrapyard processes your vehicle, they will provide you with a scrap certificate.
- Any LTA rebates will be refunded to your bank account.
How Much Can You Get for Scrapping a Car?
💰 COE Rebate
If your COE still has remaining value, you can claim a prorated rebate.
💰 PARF Rebate
For cars under 10 years old, you can receive a percentage of the original ARF (Additional Registration Fee).
💰 Scrap Value
Determined by metal demand, weight, and condition of salvageable parts.
💰 Exporter Offers
If your car is still roadworthy, some exporters may pay higher than scrap value.
Example:
A 9-year-old sedan with a few months of COE left may receive a COE rebate, a PARF rebate, and a scrap payout from the scrapyard, making scrapping a financially viable choice.
Alternatives to Scrapping Your Car
🚗 Sell to a Used Car Dealer
If your car is still in good shape, selling it may fetch a better price than scrapping.
🚗 Export to Overseas Markets
Some used cars are worth more in foreign markets.
🚗 Trade-in for a New Vehicle
Some dealerships accept trade-ins, allowing you to offset the cost of a new car.
🚗 Donate or Recycle Parts
If you’re environmentally conscious, you can recycle components like batteries, tyres, and metal.
Common Mistakes to Avoid When Scrapping a Car
🚫 Not Checking for COE or PARF Rebates
Many owners lose money by forgetting to claim rebates.
🚫 Accepting the First Quote
Different scrapyards offer different rates; always compare.
🚫 Leaving Personal Belongings Behind
Check thoroughly before handing over your car.
🚫 Forgetting to Cancel Insurance
Cancel your car insurance after deregistration to avoid unnecessary charges.
Why Scrapping a Car Helps the Environment
Singapore has a structured vehicle recycling system to ensure that scrapped cars don’t go to waste. When you scrap a car, its components are repurposed:
♻ Metal Body
Melted and reused for new manufacturing.
♻ Tyres & Batteries
Processed to prevent toxic waste.
♻ Usable Parts
Engines, transmissions, and electronics are resold or refurbished.
By choosing an LTA-authorised scrapyard, you contribute to Singapore’s sustainability efforts while disposing of your car responsibly.
Frequently Asked Questions (FAQs)
1. How long does the scrapping process take?
Once the car is deregistered and delivered, the process usually takes a few days to a week.
2. Can I scrap my car before COE expiry?
Yes, and if your COE has time left, you can claim a prorated COE rebate.
3. What happens if I don’t scrap my car after deregistration?
If you deregister your car but don’t scrap or export it, LTA may issue penalties.
4. Can I remove parts before scrapping?
Some scrapyards allow owners to remove valuable parts, but always confirm in advance.
Final Thoughts: Making the Smart Choice When Scrapping Your Car
Scrapping a car isn’t just about disposal—it’s about making the right financial and environmental choice. If you’re wondering how to scrap my car, following the correct steps ensures that you get the best value, avoid unnecessary fees, and contribute to Singapore’s sustainability efforts. Whether through rebates, scrapyard offers, or export options, understanding your choices can make the process smoother and more rewarding.