If your car’s COE is approaching its expiry date, you’re probably wondering what happens next and how to make sure you don’t lose money or run into legal trouble. This guide walks you through exactly how to scrap or export your car in Singapore, from your very first check to the day you hand over your keys.

Whether this is your first car or your fifth, you’ll find everything you need here: what documents to prepare, how much money you can expect, and the mistakes that cost car owners hundreds (sometimes thousands) of dollars every year.

When Does Your Car Need to Be Scrapped or Exported?

In Singapore, every car is registered with a Certificate of Entitlement (COE) that has a fixed expiry date. When your COE expires, your car is automatically deregistered. You don’t need to do anything for that part to happen.

But deregistration isn’t the end of the process. Once your car is deregistered, you are legally required to dispose of it, either by scrapping it or exporting it within 1 month of your car’s deregistration date. If you miss this window, you can run into legal issues with Singapore’s transport authorities, so this isn’t a deadline to let slip.

But here is the catch. 

In most cases, the earlier you start, the more money you can get.

Here’s something a lot of first-time car owners don’t realise: the value you get for your car drops the closer you get to your COE expiry date. This is because the longer you hold onto your car before deregistering it, the more your PARF rebate (also known as “paper value”) decreases. 

For example

• If you deregister your car with 1 month left on your COE, your PARF rebate might be worth $20,000.
• If you wait until your COE actually expires, that same PARF rebate could have dropped to $18,500.

That’s a $1,500 difference for waiting one month. This is why most scrapyards and exporters recommend starting the process at least 1 to 3 months before your COE expires, and not on the expiry date itself.

If you are planning to get a new car, it is also worth starting this process before your new car is delivered, rather than waiting until the last minute. You will typically get a better payout, and you won’t be rushed into accepting the first offer you see.

At the end of the day, there isn’t really a hard rule about when you should scrap your car. It is a decision only you can make. If you feel the depreciation of your car is a reasonable trade-off in exchange for the value you are getting by keeping your car, it might be worth holding onto your car a little longer. But if getting the highest possible payout matters more to you, disposing of it earlier is usually the better move.

If you are not sure which way makes more sense for your situation, it can help to talk it through with someone who deals with this daily. WhatsApp us at 94230937 and we will try and assist you with your decision.

Scrapping vs. Exporting: What’s the Difference?

You will see both terms used interchangeably, but they’re not quite the same thing:

• Scrapping means your car is dismantled and its parts/materials are sold, recycled or disposed of. In the case of Axpart International, instead of recycling and disposing of car parts, we even export dismantled parts from cars. This is why we are able to give our clients one of the best rates in the market for their cars.
• Exporting means your car is sold as one piece and shipped overseas, where regulations allow older vehicles (that can no longer be used in Singapore) to be registered and driven again.

For the car owner however, the process of preparing your documents, checking your PARF rebate, and handing over the vehicle is largely the same either way. 

The main difference is who ends up buying your car and what they do with it afterward. This can affect the price you’re offered, since exporters are sometimes able to pay more for a car in good condition than a pure scrapyard would.

The 7-Step Process to Scrap Your Car in Singapore

Step 1: Note Down Your Vehicle Registration Number and Access Code

Before you can get any price quotes, you will need two pieces of information:

• Vehicle registration number: This is simply your car plate number.
• Access code: This is a unique code tied to your vehicle that you will need to retrieve official information about it.

You can retrieve your access code through OneMotoring here, using your Singpass.

Keep both of these handy, as you’ll need them for every step from here on.

Step 2: Start Getting Quotations From Scrapyards and Exporters

Once you have your registration number and access code, you can start reaching out to scrapyards and exporters for quotes.

It is worth knowing that not all buyers work the same way. Some, like Axpart International, take in any make and model, from basic scrap-value cars to high-end models, as long as the vehicle is 2016/2017 or older. Best of all, they deal with owners directly rather than sourcing cars through middlemen. 

In a lot of car scrap deals, your car actually passes through one or more middlemen before it reaches the exporter or scrapyard that ends up with it. And each of them takes a cut along the way. When you deal directly with a buyer like Axpart who skips that chain, there is no one else taking a share, so more of your car’s value can come directly to you.

Step 3: Check Your “PARF” Rebate (also known as “paper value”)

Here is the part that actually determines whether you get a fair deal, or quietly get shortchanged. Let’s break it down as simply as possible.

Think of your payout as two separate pots of money

When a dealer offers you a price for your car, that price is actually made up of two things added together:

1. “Paper value” (the technical name is PARF rebate). This is a fixed amount of money that LTA has already decided your car is worth, based on your car’s age and the date you plan to hand it over. It’s not something the dealer decides, it’s a government-set number that exists whether or not you ever sell your car.
2. “Body value”. This is what the dealer thinks your actual physical car is worth, based on things like its condition, mileage, and how well it runs.

So: Paper value + Body value = your total payout.

Here’s the good news: you can check your own “paper value” for free, before talking to a single dealer.

👉 Check your PARF rebate: LTA Vehicle Registration & Licensing (VRL)

You’ll need

• Your vehicle registration number
• Your access code (from Step 1)
• Your intended deregistration date (the date you would like to hand over the vehicle)

Once you know this PARF rebate (or “paper value”) number yourself, no dealer can quietly hide it inside a lump-sum quote and hope you don’t notice. This is the single most useful thing you can do before getting any quotes.

Step 4: Compare Quotes from Dealers 

When comparing quotes between dealers, be aware of the trick some dealers use and how it works. 

Your “paper value” isn’t fixed forever. It slightly shrinks the longer you wait before handing over your car. So the date you plan to hand over your car (your intended deregistration date) directly affects how much paper value you’re entitled to. The earlier that date, the higher your paper value.

Now here is the trick: if you let the dealer be the one to decide and check your intended deregistration date, instead of checking it yourself and telling them, some dealers will quietly pay you 1% less than the paper value your car is actually worth on your real handover date. On top of that, some won’t even show you the two numbers (“paper value” and “body value”) separately. They will just give you one lump sum, so you have no way of knowing whether you were shortchanged on the paper value, the body value, or both.

Since you now know your own paper value in advance (from the LTA check above), this is easy to protect yourself against.

How to avoid losing that 1%

If you want to make sure you get 100% of what you’re owed, you can ask the dealer to structure the deal like this instead:

1. The dealer pays you only for the body value of your car at handover, not the paper value.
2. The dealer helps you submit your car’s disposal documents within 10 days of handover.
3. Once your documents are submitted to LTA online, LTA pays you your full paper value directly, usually within 2 weeks or less.

This way, you get your paper value straight from LTA, in full, with nothing shaved off. You just receive it slightly later than if the dealer paid it to you upfront.

Step 5: Decide on a Dealer

By this point, you’ve got quotes in hand, and you know your own paper value (from Step 3). So you are already in a much stronger position than most first-time sellers. This step is really just about making sure you are comparing those quotes fairly before you pick one.

The golden rule when deciding on a dealer: compare like for like.

It’s easy to look at two quotes and assume the higher number is the better deal. But that’s not always true, for a couple of reasons:

• Check whether doorstep collection is included.

Some dealers expect you to drive or send your car over to them. Others, like Axpart International, will come to your location and collect it for you. This might sound like a small detail, but it isn’t. Especially if your car isn’t in driving condition anymore, or you simply don’t have the time or means to arrange transport yourself. If one quote includes a doorstep collection and another doesn’t, they are not really the same offer, even if the dollar figures look similar.

• Check that every quote is based on the same intended deregistration date.

As you now know from Step 4, your paper value shifts depending on the date you plan to hand over and deregister your car. Earlier dates mean higher paper value. So if Dealer A’s quote is based on you handing over your car next week, and Dealer B’s quote is based on you handing over your car next month, you are not actually comparing two offers for the same deal. Because Dealer A will receive a higher paper value on your car than Dealer B

Before you commit to a dealer, it’s worth going back to each of them and confirming both of these points are lined up, same handover and intended deregistration date, and clarity on whether collection is included. So the number you are comparing is a true apples-to-apples comparison.

Step 6: Decide How You Want to Be Paid

This step trips up a lot of first-time sellers, because there are actually two different ways the payment and deregistration can work, and most guides don’t explain this clearly.

Option A: The buyer pays you the PARF value on the spot

If the dealer pays you your full PARF rebate value at the point of handover, industry-standard practice across scrap car dealers in Singapore is that 1% of your PARF rebate value goes to the buyer, as a “fee” for paying you immediately rather than making you wait.

Here is what actually happens behind the scenes in this option:

• You transfer ownership of the car to the dealer at the point of handover, along with its remaining PARF value.
• The dealer becomes the new registered owner of the vehicle, not you.
• Because they are now the owner, it’s the dealer who deregisters the vehicle and submits the disposal documents to LTA, not you.
• This is in the dealer’s own interest, since they are the one who paid you for the PARF value upfront. Which means they are also the one who would want to claim that same rebate from LTA as soon as possible.
• In short: once the handover is done, you shouldn’t need to do anything further. The 1% “fee”, sometimes not transparently shown and deducted from your car’s purchase price, is essentially what you are paying for that convenience. Of getting your money immediately and being done with the paperwork.

Option B: You keep ownership and claim the rebate directly from LTA

If you don’t want to lose that 1%, you can choose to keep ownership of the car at the point of handover. If you do this, however, you must get your dealer to guide you through claiming the PARF rebate amount directly from LTA yourself.

In this case

1. You still hand over the car to the dealer on the agreed date, and get paid the body value on the spot. That part doesn’t change from Option A, except that you have to claim the PARF rebate (also known as “paper value”) from LTA.
2. You keep ownership of the car for now, instead of transferring it to the dealer. This way, you (not the dealer) remain the one entitled to claim the PARF rebate from LTA.
3. Deregister your car as soon as you hand over your car to the buyer. The earlier you deregister your car, the more rebate you can get. If you deregister early enough, you may also be eligible for a COE rebate (unused portion of your COE). 
4. Submit your disposal documents yourself (your dealer can guide you through this) within 1 month after deregistration. Usually, your buyer should be able to give you the disposal documents for submission within 10 days after you hand over the car. 
5. LTA pays out the PARF rebate amount to you within 10 working days after your disposal documents are submitted.

There’s no universally “better” option, It depends on whether you’d rather have the full amount sooner (and pay the 1%), or wait longer for the full, undeducted rebate. If a dealer is willing to clearly explain both options to you, rather than just pushing you toward whichever is more convenient for them, you can rest assured that they are being transparent. 

Step 7: Inspection, Payment, and Handover

On the agreed handover date, most dealers will do a quick physical check of your car before finalising payment. This typically covers:

• Engine
• Gearbox
• Leaks
• Radiator
• Significant damage to body panels

If everything checks out as expected, payment is made as agreed, and the dealer takes the car from you.

A note on collection: some dealers, like Axpart International, offer free doorstep collection, meaning they come to your location to collect the car rather than requiring you to deliver it. If you’re comparing quotes, it’s worth asking about this upfront, as it can save you a genuinely stressful last-minute scramble.

How Much Money Will You Actually Get From Scrapping Your Car?

Your total payout is generally made up of

PARF rebate (paper value) + body value

• PARF rebate is set by LTA and decreases the longer you wait before deregistering your car. So timing genuinely affects your payout (see the example in the first section of this guide).
• Body value reflects your car’s physical condition. This includes mileage, cosmetic condition, and mechanical health (engine, gearbox, leaks, radiator, body panels, as checked in Step 7).

Because PARF rebate is a known, checkable figure, the real negotiation lies in the body value a dealer is willing to offer. This is exactly why getting multiple quotes (Step 2) matters. The body value can vary meaningfully between dealers, even when the PARF rebate portion is identical.

Common Mistakes to Avoid When Scrapping A Car

• Waiting until your COE is about to expire. As shown earlier, this can either cost you thousands in reduced PARF rebate value, or result in you having to settle for rushed quotes that are below your car’s actual value. 
• Not checking your own PARF rebate when getting quotes. Without this, you have no way to tell if an offer you are getting from a car scrapyard or dealer is fair. 
• Comparing quotes based on different deregistration dates. This makes quotes impossible to compare apples-to-apples.
• Checking if the dealer’s quote includes your PARF rebate or is just for the body value of your car. The dealer can pay you the PARF rebate and claim it from LTA on his end (by taking ownership of your car). Or the dealer can ask you to claim the PARF rebate from LTA and only pay you the body value of your car. 
• Forgetting the 1-month disposal document deadline after deregistration. Missing this can lead to legal complications.
• Assuming you must deliver the car yourself. Always ask about doorstep collection before ruling out a dealer based on convenience.

Frequently Asked Questions Around Scrapping A Car

1. How much money do I get for scrapping my car in Singapore? 

Your payout is generally your PARF rebate (based on your car’s age and intended deregistration date) plus body value (based on your car’s physical condition). You can check your exact PARF rebate for free via LTA’s portal here before getting any quotes.

2. What happens if I don’t scrap or export my car within 1 month of deregistration? 

You may run into legal issues under Singapore law. It’s important to submit your disposal documents via Singpass within this 1-month window, regardless of which payment option you choose.

3. Can I scrap my car before my COE expires? 

Yes, and in most cases, you should. Scrapping or exporting earlier (1 to 3 months before COE expiry) typically means a higher PARF rebate value compared to waiting until the COE expiry date itself. 

4. What is a PARF rebate? 

PARF (Preferential Additional Registration Fee) rebate is the portion of your vehicle’s registration costs that LTA refunds when you deregister your car, provided it’s within the eligible age window. It forms the bulk of what you’ll be paid when scrapping or exporting.

5. Do I have to deliver my car to the scrapyard myself? 

Not necessarily. Some dealers require you to send the car to them, while others, like Axpart International, offer free doorstep collection and come to you directly.

6. What documents do I need to scrap my car? 

You’ll need your vehicle registration number and access code (retrievable via Singpass on OneMotoring). Once you have decided on a deregistration date, your disposal documents provided by the buyer of your car must be submitted online via Singpass within 1 month of deregistration. This is provided that you are claiming your own PARF rebate. If your buyer is claiming the PARF rebate instead and has paid you for the PARF rebate, he will submit the disposal documents on his end. 

7. Should I let the buyer pay my PARF value on the spot, or claim it myself from LTA? 

If you want your money faster, letting the buyer pay you the PARF value immediately means giving up 1% of your car’s value as a standard fee. If you’d rather receive the full, undeducted amount, you can keep ownership and claim it yourself from LTA about 2 weeks after submitting your disposal documents.