Get the Best Car Insurance in Singapore
So you've decided to deregister, or scrap, your car. Fortunately, the LTA will reward you for taking your car off the road by offering you COE and/or PARF rebates. The sum of these rebates will equal your car's scrap value, or how much you can expect to be reimbursed for scrapping your vehicle. But how can you figure out your car's scrap value? Let's start by taking a look at how each rebate works.
If you deregister your car before your COE (Certificate of Entitlement) expires, you can be granted a rebate for the remaining amount of time left on your COE, based on the last Quota Premium (QP) or Prevailing Quota Premium (PQP) you've paid. In other words, you'll be refunded for the time you've already bought with your COE that you won't be using. Here's how it works:
COE rebate = (QP paid x # of months left on your COE) / Total # of months bought by COE
For example, let's assume you paid a QP of S$50,000 for your COE, and you've decided to deregister it after 8 years and 6 months.
COE rebate = (S$50,000 x 18 months) / 120 months
In this scenario, you would receive a COE rebate of S$7,500.
If you wait until your COE expires to deregister your car, you will not receive a COE rebate, as you won't have any unused time left on your COE. Keep in mind that if you deregister your car within 2 years of its registration, your COE rebate will be capped at 80% of the QP/PQP paid.
If the car you are deregistering is under 10 years old, you'll be eligible to receive a PARF (Preferential Additional Registration Fee) rebate. This rebate is designed to recoup you for the ARF (Additional Registration Fee) you paid on registering the car. The following table will tell you how much you can expect to get in PARF rebate based on the age of your car at deregistration.
|Age at Deregistration||PARF Rebate|
|Under 5 years||75% of ARF paid|
|Over 5 but under 6 years||70% of ARF paid|
|Over 6 but under 7 years||65% of ARF paid|
|Over 7 but under 8 years||60% of ARF paid|
|Over 8 but under 9 years||55% of ARF paid|
|Over 9 but under 10 years||50% of ARF paid|
|Over 10 years||Nothing|
As a reminder, the ARF scales off of the Open Market Value (OMV) of your car. So the more you paid for your car, the higher the ARF was, and the higher your PARF rebate will be, as long as your car is still under 10 years old. If it's over 10 years old, however, you will no longer be able to receive the PARF rebate.
If you deregister your car, you can receive both a COE and PARF rebate. Your rebate(s) will be valid for 12 months from the date of deregistration.