In the pulsating heart of Singapore, where every square metre is meticulously managed, knowing how to scrap a car in Singapore is not just practical—it’s essential. Whether you’re an environmentally conscious citizen or someone simply looking to comply with regulations, scrapping your car the right way benefits both you and the planet. Here’s a comprehensive guide to ensure you navigate this process smoothly and efficiently.
Why Scrap Your Car in Singapore?
Scrapping a car isn’t just about getting rid of an old vehicle; it’s part of Singapore’s broader environmental and urban planning efforts. With limited land and an ever-growing population, Singapore implements strict policies to ensure that vehicles meet emission standards and space constraints.
- Government Policy: Vehicles older than 10 years often face increased road tax and mandatory inspections. Renewing a Certificate of Entitlement (COE) for older cars can also be expensive, making scrapping a cost-effective alternative.
- Environmental Impact: Singapore generated over 20,000 tonnes of scrap metal from vehicles in 2022. Recycling these vehicles significantly reduces landfill waste and supports a circular economy.
- Economic Benefits: Scrapping can help you recoup some costs through rebates and the sale of reusable parts.
Steps to Scrap a Car in Singapore
Knowing the step-by-step process is vital to ensure you comply with local laws and maximise the financial benefits.
Understand the Deregistration Process
- Deregister your car with the Land Transport Authority (LTA) to officially take it off the road.
- Ensure all outstanding loans, fines, or penalties on the vehicle are cleared before deregistration.
- Submit an application online via LTA’s OneMotoring platform.
Choose Between Scrapping or Exporting
- Scrapping: Send the car to an authorised scrapyard. The scrapyard will dismantle the car, recycle its parts, and issue you a certificate of destruction.
- Exporting: If your car still has value overseas, consider exporting it to another country. This option often provides higher returns but requires working with an exporter familiar with international regulations.
Receive Your COE Rebate
- If your car has an unused portion of its COE or Preferential Additional Registration Fee (PARF), you are entitled to a rebate.
- Example: If you deregister a car with two years left on its COE, you could receive a rebate of approximately 50% of the original COE cost.
Documents You’ll Need to Scrap Your Car
Proper documentation ensures the scrapping process is seamless and free of hiccups. Be prepared to provide:
- Vehicle Registration Certificate
- Proof of identity (e.g., NRIC or FIN)
- Deregistration confirmation from LTA
- Any settlement letters for outstanding loans or fines
- Bank account details for receiving rebates
Tips for Maximising Returns When Scrapping Your Car
To make the most of your scrapping experience, follow these tips:
- Sell Usable Parts: If your car is still in good condition, sell parts like tyres, batteries, and electronics separately. These parts can fetch higher prices than the car as a whole.
- Compare Offers: Different scrapyards and exporters offer varying rates for scrap metal and car parts. Comparing quotes ensures you get the best deal.
- Consider Exporting First: If your car has good resale value in overseas markets, exporting could be a more lucrative option.
What Happens to a Scrapped Car?
Once scrapped, your car undergoes a detailed dismantling and recycling process:
- Dismantling: The vehicle is stripped of valuable parts, which are resold or refurbished.
- Metal Recycling: Steel, aluminium, and copper are extracted and sent to recycling facilities.
- Proper Disposal: Hazardous materials, such as oil and coolant, are disposed of according to environmental regulations.
In Singapore’s tightly regulated environment, over 75% of a vehicle’s components are recycled or reused, setting a global benchmark for sustainability.
Common Mistakes to Avoid
- Failing to Clear Outstanding Loans: Ensure that your car loan is fully paid off to avoid delays in the deregistration process.
- Choosing an Unauthorised Scrapyard: Using unauthorised scrapyards may lead to legal repercussions and potential loss of COE rebates.
- Forgetting to Cancel Insurance: Inform your insurer immediately after deregistering the vehicle to stop premium payments and claim any refunds due.
The Cost of Scrapping a Car in Singapore
Scrapping costs can vary based on the car’s condition and the chosen scrapyard. However, most car owners find that rebates from the COE and PARF often offset these costs, with some even receiving a net payout.
- Scrapping Fees: Typically range from S$50 to S$200.
- COE and PARF Rebates: Average between S$5,000 and S$20,000, depending on the vehicle’s original value and remaining COE period.
Conclusion
Scrapping your car in Singapore doesn’t have to be a daunting process. By understanding the steps, preparing the necessary documents, and choosing the right scrapyard, you can navigate the procedure with ease and even pocket some returns. Whether you’re motivated by environmental considerations, legal obligations, or financial incentives, the key is to stay informed and proactive.
So, the next time you wonder how to scrap car in Singapore, remember that the process is as much about making a responsible choice as it is about letting go.
