Is your certificate of entitlement (COE) ending? Are you thinking of scrapping your current car? If so, you should begin the car scrapping process. Unfortunately, the Singapore car scraping procedure is complex with plenty of misleading information out on the web.
To help you get started, we have listed 3 things that you must know before you begin to scrap your car.
Find The Expiry Date of Your Certificate of Entitlement
Each COE contains a period of 10 years, during which you are entitled to drive your car on the road. Once the COE expires, you will no longer be allowed legally to drive the car. Knowing the exact date of expiry will also inform you of the amount of COE rebate that you are entitled to once you scrap your car. Typically, the later in the cycle that you scrap the car, the less COE rebate will be given to you.
You should be careful to note that the process of car scrapping in Singapore is not immediate. As such, sufficient time buffer must be given to ensure that you can safely carry our the scrap car process before the COE expiry date.
Prices Depend On 2 Factors
Your car scrap value determined by scrap car dealers for your car body varies based on 2 factors.
Firstly, the market conditions of demand and supply will affect your car body’s price. In any given year, the number of cars of the same car model as yours on the road will vary. If you are fortunate, and have your car ready to scrap in a year whereby the supply of your car model is low, then you can expect a higher price for it.
Secondly, the duration that your car has been on the road as well as its general condition will also affect your car’s price. The more mileage that your car accumulates is used as a proxy metric for the amount of wear and tear that it has suffered. This in turn devalues the car’s value. Additionally, any defects, be it functional or aesthetic, will also lower the likely quoted price.
You Can Also Consider Exporting
Other than scrapping, you can also consider exporting your car. The difference here is that you avoid tearing your car apart for scrap in favour of engaging a dealer to export your car overseas for resale. In general, cars that are exported fetch you higher prices.
However, a dealer’s willingness to obtain your car demands on demand and supply conditions in foreign markets. As such, in a given year, there may not be any demand for your car model. In such a case, you will not be able to export your car.