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A guide to scrapping or exporting your car, calculating your scrap & deregistration value and how to get a higher selling price when your COE expires
Category: Car Ownership Advice
As your car nears its 10th and final year, it's time to decide whether you should export, scrap or renew your COE.
There's a lot to think about, especially if you're thinking of scrapping or exporting your car. We've summed it up in seven digestible points:
- Should you scrap or export your car
- How to calculate deregisteration value
- Deregistering a COE car
- How to get a higher scrap value
- How to get a higher selling price with an exporter
- How exporters quote prices
- What happens when scrapping or exporting a car
Should you scrap or export your car
If COE renewal is out of the question, you're probably planning to deregister your car. But once you've successfully deregistered your car, should you scrap or export it?
Some people choose to export their car because it gets them more money, while others scrap their car because it's too old or in bad condition and exporters don't want it.
Regardless of whether you scrap or export your car, you'll get back money based on your car's deregistration value. Which brings us to the next thing you should know.
How to calculate deregistration value
Your car's deregistration value is the sum of your Certificate of Entitlement (COE) rebate and the Preferential Additional Registration Fee (PARF) rebate:
[COE rebate + PARF rebate] = Deregistration value
Deregistration value (aka paper value) is the sum of money you'll get back upon successful deregistration of your car.
Your PARF is dependent on your car's Open Market Value (OMV).
Find out how to calculate your PARF, OMV and COE rebates
Will you get money when you deregister a COE car?
A COE car is a car that has its COE renewed for five or 10 more years instead of deregistering it after its original 10-year cycle.
And the answer is YES, you can get rebates from deregistering a COE car.
However, your deregistration value only comprises of your COE rebate (the unused portion of your COE).
PARF cars (cars that have yet to renew their COE), as we mentioned above, are entitled to PARF rebates on top of COE rebates.
This is one of the main differences between PARF cars and COE cars.
How to get a higher scrap value
You can calculate the scrap value of your vehicle like so:
[Deregistration value + Body value] = Scrap value
A car's body value is the amount that dealers/scrapyards give your car. Many factors can influence the body value of your car - general demand, market changes and even the model of your car for example.
If you're familiar with the concept of supply and demand, you can use this knowledge to own high scrap value cars.
Taking a look at the data from data.gov.sg, I found that:
In 2015, there were ~80,000 new car registrations
In 2017, there were ~120,000 new car registrations
Assuming a majority of these cars deregister their cars 10 years down the road in 2025 and 2027 respectively, cars in 2025 will have a higher body value because of the "under supply" of cars in 2015. So if you bought a car in 2015, great news!
Also, prices quoted by scrapyards may vary. You may need to check with five or more scrapyards to get the best price or a price that you're happy with.
If that sounds like a bother, get help to source for quotations from over 100 scrapyards and get the best price without wasting any time.
How to get a higher selling price with an exporter?
Depending on your car's make and model, some overseas dealers will be willing to pay top dollar for it.
Car exporters who sell cars to these overseas dealers are more than happy to give your car a higher selling price compared to scrapyards, but it needs to meet three basic requirements:
- Is your car a popular model?
- Is there a high demand for your car in the overseas market?
- Is your car still in good condition?
It's a tedious process, but you can get started today, and we'll get the best price for you instead!