Singapore is a country with limited land resource and is also one of the core reasons why there is such thing as COE (certificate of entitlement). A COE represents the right for an individual or company to own and use a selected vehicle in an appropriate vehicle class for a duration of ten years. This process is done through a bidding where there are a limited amount of certificates available per month. The introduction of COEs due to the limited land resource that Singapore has and is definitely a need to curb the amount of vehicles allowed on the road to prevent over congestion. Before the end of the 10-year COE entitlement. Owners can usually decide to scrap the vehicle or to export the vehicle. In this post, I hope to share the insights and the different between the two to help you in your decision making process.
There are three different options when your car’s 10 years are almost up. You can either scrap the car yourself or get someone to do it, sell it to a car dealer who will either scrap the car or export the vehicle to places such as Indonesia, or you can buy another car and trade in your old car. Unless you are intending to purchase a new car, you will normally choose to do the first two options which is to sell the car or scrap the car. When weighing the options, you’ll definitely want to choose the option with the higher monetary returns and it is important to do a quick research to get the best deal.
To get the scrap value there is a simple formula that you can use. In this case, we will talk about COE rebate which is the money you get back on the portion of years that you haven’t used on your current vehicle. For example if you have about 3 months left on your car, your COE rebate will be 3 months divided by 120 months which is total 10 years multiplied by the sum of the COE from the same tender exercise when you purchased your vehicle. The second component is PARF which basically says that at years 9 to but not exceeding 10 years, the PARF rebate is 50% of ARF paid. Do this simple calculation and you’ll get the amount if you scrap your car.
Selling your car to an exporter is a straight forward method because all you have to do is get quotations from various exporters and evaluate which is better for you. One good example is contacting absolute motors pte ltd. It is also good to point out that this is the preferred method as it usually yields a better return. You also have lesser hassle to handle for deregistration which can be quite complicated to do if you are a first timer. Since absolute motors are a direct exporter they will handle all aspects of scrapping your car or exporting your car
At the end of the day, it is important to evaluate both to see which will give you a higher monetary return. After all, cars are an expensive commodity and getting back whatever you can will be beneficial for you.