How to Scrap a Car Step-by-Step: 2025 Complete Guide

When your car in Singapore reaches the end of its useful life, whether due to age, condition, or an expiring Certificate of Entitlement (COE), you may consider scrapping it. The process, while regulated, is straightforward if you know what to expect and prepare accordingly.

This guide provides a detailed, step-by-step walkthrough of everything you need to do—from gathering documents to handing over your vehicle to a licensed scrapyard. You’ll also find practical checklists and clear explanations for each stage of the process.

Navigating the scrapping process can be daunting, especially for first-timers. However, with the right information, you can ensure a smooth, stress-free experience. This article is designed for both new and experienced car owners, offering comprehensive instructions and actionable checklists for each stage.

Prerequisites for Scrapping

Before you can scrap your car in Singapore, there are several essential prerequisites you must fulfill. Proper preparation at this stage will save you time and prevent unnecessary complications.

Valid Ownership Documents

As the registered owner, you are responsible for initiating the scrapping process. The following documents are required:

• Vehicle Registration Certificate (Log Card): This official document proves your ownership and contains important details about your vehicle, such as the registration number, chassis number, and engine number.
• Certificate of Entitlement (COE): If your COE is still valid, you’ll need this for deregistration and to claim any rebates. The COE is a critical document that determines your eligibility for certain financial returns.
• NRIC or Passport: For identification purposes when dealing with authorities or scrapyards. You may be asked to present this when deregistering your vehicle or handing it over to the scrapyard.
• Proof of Address: Some scrapyards or the Land Transport Authority (LTA) may request proof of address for verification. This could be a utility bill, bank statement, or other official documents.
• Insurance Policy Details: You’ll need to cancel your insurance policy, so having your policy number and insurer’s contact information is essential.

Checklist for Prerequisites:

•  Vehicle Registration Certificate (Log Card)
•  Certificate of Entitlement (COE)
•  NRIC or Passport
•  Proof of Address (if required)
•  Insurance Policy Details

Road Tax Status

Ensuring your road tax is up to date is another critical step. Unpaid road tax can result in penalties and complicate the deregistration process. You can check and pay your road tax using the LTA’s OneMotoring portal. If your vehicle is no longer in use and you’re planning to scrap it soon, you may choose not to renew your road tax, but it must not be in arrears at the time of deregistration.

Checklist for Prerequisites:

•  Road tax paid up to date

Step 1: Deregister with LTA

Deregistering your vehicle with the Land Transport Authority (LTA) is the first official step in the scrapping process. This can be done online or in person, depending on your preference and circumstances.

Online Portal Guide

1. Log in to OneMotoring:
   Visit the LTA’s OneMotoring website and log in using your Singpass credentials. If you don’t have a Singpass account, you’ll need to create one.
2. Navigate to Deregistration:
   From the main menu, select the “Deregister a Vehicle” option. This will take you to the deregistration page.
3. Choose Scrapping Method:
   Indicate whether you are scrapping your vehicle at an LTA-approved scrapyard or through a dealer. Each option has slightly different requirements, so select the one that applies to you.
4. Enter Vehicle Details:
   Provide your vehicle’s registration number and confirm ownership. The system will display your vehicle’s details for verification.
5. Submit and Confirm:
   Review the information carefully, then submit your application. You’ll receive an email confirmation with instructions for the next steps.

Checklist for Deregistration:

•  Singpass account (for online)
•  Vehicle details (registration number, etc.)
•  All required documents
•  Confirmation email or receipt

In-Person Options

If you prefer or require in-person assistance, you can visit an LTA counter. Bring all the required documents listed above. The staff will guide you through the process and answer any questions you may have. Be prepared for potential queues, especially during peak periods.

Step 2: Calculate Rebates

Understanding your entitlements is key to maximizing your returns when scrapping a car in Singapore. The two main types of rebates are the PARF and COE rebates.

PARF vs COE Breakdown

• PARF Rebate:
  The Preferential Additional Registration Fee (PARF) rebate is available for cars deregistered within 10 years of registration. The amount depends on the age of the car and the original ARF paid.
  • Calculation:
    The PARF value is a percentage of the ARF paid, decreasing with the car’s age. For example, a car deregistered in its fifth year may receive a higher percentage than one deregistered in its ninth year.
  • Example:
    If your car’s ARF was $20,000 and it’s deregistered in its sixth year, you might receive a 75% rebate, which is $15,000.
• COE Rebate:
  The COE rebate is the unused portion of your COE. If your COE has not expired, you may be eligible for a rebate based on the remaining period.
  • Calculation:
    The rebate is pro-rated based on the number of months left on your COE. For instance, if you have six months remaining, you’ll receive a rebate for those six months.
  • Example:
    If your COE was $50,000 and you have six months left, you might receive a rebate of approximately $2,500 (assuming a linear calculation; actual rates may vary).

Checklist for Calculating Rebates:

•  Use LTA’s OneMotoring calculator
•  Gather ARF and COE details
•  Understand the difference between PARF and COE rebates
•  Calculate your estimated rebates

Step 3: Choose Scrap Yard

Selecting the right scrapyard is crucial for a hassle-free scrapping experience. Only LTA-approved scrapyards are authorized to accept vehicles for scrapping in Singapore.

LTA-Approved List

• Finding an Approved Scrapyard:
  Visit the LTA website for a current list of approved scrapyards. This ensures that the scrapyard follows strict environmental and safety regulations.
• Research and Reviews:
  Search online for reputable scrapyards with positive reviews and transparent pricing. Consider proximity to your location and additional services offered, such as free towing for non-drivable vehicles.
• Compare Quotes:
  Contact multiple scrapyards to compare quotes for your vehicle’s body and parts. This will help you get the best value for your car.
• Additional Services:
  Some scrapyards offer additional services, such as helping with deregistration, providing towing, or assisting with paperwork. Consider these options if you need extra support.

Checklist for Choosing a Scrap Yard:

•  Check LTA’s approved scrapyard list
•  Read online reviews
•  Compare quotes from multiple scrapyards
•  Consider additional services (towing, paperwork assistance)
•  Select a scrapyard with good reputation and transparent pricing

Step 4: Hand Over Vehicle

Once you have deregistered your vehicle and selected a scrapyard, it’s time to hand over your car. This step involves several important tasks to ensure a smooth transition.

Checklist for Handover

1. Prepare Documents:
   • Deregistration confirmation from LTA
   • Vehicle registration certificate
   • COE certificate
   • NRIC or passport
2. Remove Personal Belongings:
   Check all compartments, including the glove box, trunk, and under seats, for personal items.
3. Cancel Insurance:
   Inform your insurer to cancel your policy and request a refund for any unused coverage.
4. Deliver Vehicle:
   • Drive or tow your vehicle to the scrapyard.
   • If using a dealer, arrange for collection at your preferred location.
5. Complete Paperwork:
   Sign necessary forms and receive a receipt or confirmation of scrapping.
6. Receive Payment:
   Collect payment for your vehicle’s body value and any rebates as agreed.

Checklist for Handover:

•  Deregistration confirmation
•  Vehicle registration certificate
•  COE certificate
•  NRIC or passport
•  Remove personal belongings
•  Cancel insurance
•  Deliver vehicle to scrapyard
•  Complete paperwork
•  Receive payment

Common Mistakes to Avoid

Avoiding common pitfalls will save you time, money, and stress during the scrapping process.

Late Deregistration Penalties

• Timing:
  Deregister your vehicle before the COE expires to avoid late penalties and loss of rebates. Waiting too long can result in forfeiting your entitlements.
• Road Tax:
  Ensure all road tax is paid up to date. Unpaid road tax can result in fines and complicate the scrapping process.
• Insurance:
  Cancel your insurance policy promptly to avoid unnecessary charges.
• Choosing Unapproved Scrapyards:
  Only use LTA-approved scrapyards to ensure compliance with regulations and avoid legal issues.
• Failing to Remove Personal Belongings:
  Double-check your car before handing it over. Once the vehicle is scrapped, recovering lost items is nearly impossible.
• Not Keeping Records:
  Maintain copies of all documents and communications related to the scrapping process. This will help you resolve any disputes or issues that may arise.

Conclusion

Scrapping a car in Singapore is a straightforward process when you follow the proper steps and prepare the necessary documents. By deregistering your vehicle with the LTA, calculating your rebates, choosing an approved scrapyard, and carefully handing over your vehicle, you can ensure a smooth and rewarding experience.

Avoid common mistakes such as late deregistration and unpaid road tax to maximize your returns and stay compliant with local regulations. This comprehensive guide equips you with the knowledge and confidence to navigate the car scrapping process efficiently.