It’s crucial not to leave the Singapore car scrapping process or the decision to export your vehicle until the last minute. Wondering why? Well, once your Certificate of Entitlement (COE) expires, your car becomes immobilized. So, unless you’re inclined to incur extra costs for towing your car to the scrapyard, it’s advisable to get your affairs in order at least three weeks before your COE’s expiration. The only reason to procrastinate would be if you have a peculiar fondness for last-minute rushes, in which case, it might be wise to consider therapy.
Scrapping or Exporting – Which Route to Choose?
Some drivers opt for exporting their cars, as it can yield a higher return, while others prefer engaging with reputable scrap car Singapore dealers like JA8 Import and Export to scrap their cars due to age or condition, making them unsuitable for export. Regardless of your choice to scrap or export, your compensation will be based on your car’s deregistration value. This brings us to our next point:
Understanding Deregistration Value (Paper Value)
- Deregistration value represents the money you receive after deregistering your car. It’s simple math:
- Paper Value = Total COE (Certificate of Entitlement) rebate + Total PARF (Preferential Additional Registration Fee) rebate
To determine your COE and PARF rebates, you can inquire with the Land Transport Authority (LTA). Keep in mind that your intended deregistration date can affect your total paper value.
Maximizing Your Scrap Value
Scrap Value = Deregistration value + Body value. The body value you get from your car depends on factors like its make and model, but it’s also influenced by supply and demand dynamics.
For instance, if there was a 10% reduction in new car registrations in 2010 and 2011 compared to previous years, this limited supply of cars led to an “under supply” in 2020, subsequently boosting the body value for car bodies in that year.
Earning More with Car Export
The short answer is yes. For those unfamiliar with the export process, a car exporter assists in selling your car to dealers in other countries. Keep in mind that not all cars are eligible for export, as certain requirements must be met.
While export requirements can change periodically, three factors remain crucial: your car’s popularity, demand for it, and its overall condition. If your car meets these criteria, congratulations! If not, consider sending your car to a scrapyard and selling it for parts.
Securing the Best Price with an Exporter
The prices quoted by exporters largely depend on their contacts and the countries they deal with. Different car brands have varying levels of appeal in each country, so it’s advisable to obtain offers from multiple exporters before making a decision.
To ensure you receive the highest quotes for your car, why not request a non-obligatory quote from us at Brze? We collect the best offers from multiple exporters to ensure you get the most competitive deals available.
The Process of Scrapping or Exporting Your Car
If you’re new to the concept of scrapping and exporting your car, we understand that it might seem a bit mystifying. Before we proceed, let’s clarify the steps involved:
Scrapping Your Car in Singapore:
- Drive to an LTA-appointed car scrapyard (Don’t forget your completed deregistration form).
- The scrapyard pays you on the spot for the car’s body.
- You’ll obtain your car’s deregistration value from LTA, which may take a few weeks. You should receive your payment within a month.
Exporting Your Old Car:
- Contact multiple exporters.
- Your exporter will liaise with their network of car dealers and provide you with their quote.
- Select the offer that suits you best.
- Receive immediate payment for your car (No cumbersome paperwork on your end – your exporter handles it for you).
Can I Handle the Scrapping or Exporting Process Myself?
Yes, you can! Managing the scrapping process yourself ensures you receive the full paper value and your road tax rebate, which will be released to you within three to four weeks after the transaction. If you’re looking to maximize your earnings from deregistering your car, this option might be ideal.
However, ensure that you’re fully committed to the entire process, as it can be time-consuming and involves a substantial amount of paperwork and legal procedures. If you’re uncertain about your available time, it’s best not to take on a project you might struggle to complete.