Zit Seng's Blog

A Singaporean's technology and lifestyle blog

Calculating Scrap Value of Singapore Cars

Back of carI did not intend for this blog to have a focus on car ownership in Singapore. Interestingly, I’ve found that the most popular visit here is about scrap value of Singapore cars, officially known as the PARF/COE rebates for deregistering a vehicle. This is my 2015 update having also written a similar update in 2012.

The rules are simpler now, thankfully, because some critical changes in rebate calculation happened long enough ago to not affect most cars that are now on the road.

The scrap value, or officially the PARF/COE rebate, is made up of two parts. The COE rebate, and the PARF rebate.

The COE rebate is easier to explain. In principle, you will receive a rebate based on the portion of unused COE, pro-rated to the number of months and days remaining on the COE. The COE amount is basically what you paid when you bought/registered your car. There are some exceptions:

  • If your vehicle was registered with an “Open” category COE, then the rebate is based on the lower of the Quota Premium of the “Open” category COE, or its corresponding category from the same tender exercise. I.e., it’s the COE of the open category or the COE of the rightful category for your car, whichever is lower.
  • A vehicle scrapped within two years for export is subject to other rules, beyond the scope of this post.

Next, the PARF rebate is a percentage of the ARF paid during registration of the vehicle. The following table illustrates the rebate:

Age at De-registration (years) PARF Rebate as % of ARF
age <= 5 75%
5 < age <= 6 70%
6 < age <= 7 65%
7 < age <= 8 60%
8 < age <= 9 55%
9 < age <= 10 50%
age > 10 0%

The ARF, or Additional Registration Fee, is a tiered tax rate based on the Open Market Value of the vehicle. The ARF is part of the purchase price of your car.

Registered with COE from tender exercise ARF as a % of OMV
From March 2008 onward 100%
From March 2004 to February 2008 110%
From May 2002 to February 2004 130%

The ARF is also affected (by way of rebates or surchages) by the Carbon Emissions-Based Vehicle Scheme. Instead of trying to explain all the calculations, I suggest to just refer to your vehicle logcard. The ARF paid is stated in the logcard.

The PARF rebate table I mention here applies for vehicles registered with COEs from the May 2002 tender exercise. Now, if your vehicle is registered prior to May 2002, it is way more than 10 years old by now, so you get no PARF rebate at all.

Do note that LTA does provide a tool to Enquire PARF/COE Rebate for Registered Vehicle. It’s an online calculator to figure out the rebate for you, given your vehicle number and intended date of de-registration. The OneMotoring website also has a page on the PARF/COE rebates. If, however, you’re looking for a simplified tutorial on the calculations, then I hope this page will be helpful.

36 thoughts on “Calculating Scrap Value of Singapore Cars

  1. Hi.. Sorry to trouble you.. But Im thinking of buying a 9 year old car… Can I safely say that the cash I take back at the point of scrapping will be 50% of the PARF?

    Say selling price is $10k
    PARF $5k
    My car for that one year is actually $10k minus $2.5k (50% of PARF $5k) ?
    My nett cost of the car is $7500 for the car?

    Thanks loads 🙂

  2. Hi Zit Seng,

    Since you are pretty familiar with scrap cars n related issues, can I tap on your wisdom a bit.
    1) if I drive my present Honda Stream which is 7 years old now, till the end of COE (say 3 months before end of COE) what will be amount that I can recover? 50% of PARF + value of car body? How do I know the value of my car body?
    2) how do I explore if it is worth keeping my present car till the end or replace with a new car now? Is there a calculation template for me to do that?

    Thank you,
    Ling

  3. Hi, I need some enquiry.. regarding my car.
    My car is a weekend car “red plate”. Now I cannot use my car due the engine, therefore I have to scrap my car. My workshop told me that, I need to top up $1300 to $1800 for my car in order to be scrapped. For your info, according to LTA my parf value is $4900 the car will be 10yrs in July2016 and monthly I am paying my monthly installment $270/month. Why do I need to make the extra payment of $1300 to $1800?
    Please help me to solve this issue. Can I get any money?

    1. I have a weekend car due to be 9 years in Feb. The engine failed and I have intention to scrap the car. What is the value now if I were to scrap this week?

      Thanks lot.
      May

  4. Hello again,
    Please also advise if i can go to any scrap yard / scrap yard dealer to deregister my car or i can only go to those LTA approved scrap yard.

    If i were to export my car, would i be able to get a better value as compared to scrapping my car locally here in singapore.

    Your assistance is highly appreciated

  5. hi, are you interested in a vw air cooled classic beetle? COE expiring in april 2019
    I am retiring soon, I needs the money

  6. i have a honda stream 1.8a june 2008. i still owe the bank some $23000 for the next 2 years. My monthly installment is just below $900. Wanna find out if i have the cash to settle my full installment to the bank, will there be a reduction. i.e will the bank minus the interest payments?

  7. Hi bro I have nissan sunny 1.6 m
    Registered on 28/04/06.Coe expiring on 28/04/16 & parf value @ 6K.
    No bank lone at present.wish To know how much can I get back after scrap.
    Need your friendly advice weather to scrap through car dealer or registered scrap yard dealer.
    Thanking you in advance.
    Regards

  8. Dear Zit,

    I have a weekend chery T11, the engine cockup, piston broken, need a replacement/ scrap engine . it is 2008model 1.6cc. but is difficult to get. car is still on finance.what shall I do so not to loose large amount. can you direct me,
    thank you in advance.

  9. Hi, I am still quite confuse on how to calculate the scarp value. My Wish will expire 07 Sept 2016 in a month’s time. if I do decide to scrap my car, does that mean I take 75% of Actual ARF Paid? My Additional Registration Fee rate is 110%
    Let say my ARF paid is $23,000, the Scrap Value that I should get back for my car is $23,000 X 75% = $17,250. Please advise and thank you so much.

  10. Hi, I’m looking to buy a 2009 car from a private seller. He claims PARF rebate to be 17k. Is there any way for me to check this myself? I seem to only be able to request OMV or ARF paid for a car that’s registered in my name… Thanks!

  11. Hi zit seng,

    can I have your kind advise that i have a 24ft truck year 1997 till 2016. now I’m going to scrap this truck,
    would you able to advise me, in the market, how much will I able to get back ?

  12. hi sir, I am driving a mitsubishi lancer with no parf value and coe ends next March 2017. may I ask whether I will be able to get back any cash ? thanks and best regards.

  13. Hi,

    I have a quick question. I have a vehicle registered on 23 Mar 2007
    The OMV is 12045
    The Actual ARF paid is 10850 (90% of OMV????)
    However, my PARF rebate is only 5425 (45%)
    How can this be because I thought it will be at 55%?

    1. In 2007, your ARF ought to be 110% of OMV. So I believe 12045 is your ARF, and your OMV is probably $10950? Your PARF rebate ought to be 50% in the 10th year. You should be able to use LTA’s e-service to get the full details.

  14. The LTA told me to use the ARF paid/2.
    For cars registered by Feb 2008, the ARF paid will be 110% of OMV thus 55%
    For other cars it be 50%.
    But what troubles me is that for cars with under declared OMVs what adjustments should be made?

    PS good blog

  15. My Mitsuibisi Colt will expire in Jan 2017. I am thinking is there still a resale value ? or should i de-registere and scrap ? Will i still get back scrap value ?

  16. Hi Zit Seng,
    Thanks for your informative blog.

    When scrapping a car with the expiry of the COE, we receive a PARF/COE rebate from LTA. Do we get any cash for the sale of the car itself as scrap metal to the scrap yard?

    1. Yes. If you handle everything yourself, you ought to. Otherwise someone else will probably take a cut for handling the work.

  17. LTA,Hi sir/madam just for my info,that is if i already scrap my vehicle no.SGM 8750P, will there b a reimbursment for it. Await for your reply, my1st doing scrap car.kindly advise. TU.

    1. Hi Mdm Jalilati,

      This is a personal blog. I don’t think LTA has anyone reading these comments. You should contact them directly.

  18. I owned a Toyata Wish 1.8A
    COE expiring on 27/12/2016
    How much could i get if scrap or export the car
    on expiring of the COE

  19. Hi,
    If i will to renewed another 10 years of COE for my 10 years old car and decided to deregister my car on the 13th years, will there be any COE rebate for the remaining 7 years of the unused COE? Is it prorated and is there any other admin costs, etc….Thanks.

  20. Hi,

    I have a Volvo for which 10 years COE is expiring on 28th Feb 2018. The vehicle is in very good condition. I am interested to sell it. Could you please let me know how much can I get.
    Thank you,
    Devan

  21. Hi,
    My car SJA4703E COE expire this early December, may i know how much is the scrap value and what is the procedure? How to do it and where to do it.
    Thanks.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.