Every car and vehicle in Singapore is required to have a Certificate Of Entitlement (COE) in order for it to be driven on the road. This means that in addition to buying a car, you would have to top up a sum in order to use it.
Each COE has an effective term of 10 years, thus when a COE approaches its end, you as it as its owner has a decision to make. You will have to choose between renewing the COE or scrapping the car.
Renewing the COE
If you choose to renew the COE, you will have to buy a second 10 year term. This gives you the right to drive the car on Singapore’s roads for another 10 years.
Owners who choose to renew the COE usually do it as their current car holds either sentimental value or is of unique make. As such, they are unwilling to stop driving it.
It should be noted that if you do choose to renew the COE, you can still scrap it at any time during the second COE term. However, you will not be eligible to claim the PARF rebate at that time.
Scrapping Your Car
If you choose to scrap your car, you will be eligible to potentially collect the COE rebate, PARF rebate and car scrap value.
The COE rebate compensates you for time left on your COE term when you scrap your car. Meanwhile, if you choose to scrap your car during its first COE tenure, then you will be able to collect the PARF rebate. In both cases, you can find the precise amount of rebate that you will receive by using the online calculator on the One Motoring website.
The car scrap value differs from the two rebates in that it is offered by a scrap car dealer. As such, different dealers will offer different prices for your car. Since different dealers use different criteria, it can be difficult to ascertain the value of your car’s body.
Nevertheless, evaluations of your car’s worth typically comes down to two factors. Firstly, the market’s supply and demand for your car model will affect its value. In certain years, demand for a particular car model will rise or fall. If you are fortunate to be in a high demand year, then you will find higher offers.
Secondly, the overall condition of your car will be assessed. Typical proxy factors include any damage and defects or the overall mileage that you have driven your car for. The better the condition of your car, the higher the offer you will receive from the scrap car dealer.
Read to Scrap Your Car
How to scrap my car? If you are certain that you are scrapping your car, then contact a local scrap car dealer today to begin the process.