Scrapping your car in Singapore can be a bit of an obscure and misunderstood process. This is due to the lack of clear information and directions that exist online. To help bridge this gap in knowledge, we have first written this article to address what is perhaps the most important question that you would be asking: “how much do you get for scrapping a car?”
If you did not know that you would be financially compensated for scrapping your car or are unsure as to how to go about determining its fair value, then this article is for you.
Why do you get financial compensation for scrapping your car?
The easy and short answer to this question is that you would be selling your car’s body to scrap dealers who in turn pay you for the materials. However, in Singapore, not only do you get paid for your car body’s scrap, but you also receive rebates from scrapping your car.
The first rebate is the COE rebate. In Singapore, in order to own a car, you would have had to purchase a COE or Certificate of Entitlement. The COE gives you the legal right to drive the car on the road for a duration of 10 years.
Once the COE is expired, you would no longer be eligible to drive that car. You do have the option of extending your COE by paying a premium, either that or scrapped your car and receive a rebate on the COE for the amount of time left on it. As such, in essence, a COE rebate compensates you for any unused time that you previously purchased on the COE.
The second possible rebate is known as the PARF rebate. Unlike the COE rebate, the PARF rebate is not given under all circumstances. Rather, it is only released when you choose to scrap your car within the first COE cycle. From this standpoint, you could see the PARF rebate as a form of encouragement to purchase a new car rather than renewing your COE. In doing so, you would be keeping the average age of cars on Singapore roads low as well as boosting the local economy.
Determining the Value of your Scrap
As alluded to before, other than rebates, you would also receive money from a scrap car dealer in exchange for your car’s body. Unlike the rebates however, this value is determined at the discretion of the dealer. As such, he or she is free to quote any price which is deemed fair value to them. In order to get the best price for your car, we recommend speaking to several dealers to find a good deal on the market.
You should also research into the condition of your car and market forces that would be affecting its value. These factors will affect the evaluation carried out by the scrap car dealer on your car when determining the price of your car’s body.