What You Need to Know Before You Scrap Your Car in Singapore
Thinking of parting ways with your current car? Not intending to renew your Certificate of Entitlement (COE)? If so, there are several things that you should first find out about the scrapping process before proceeding.
Finding the Expiry Date of Your COE
Once your car’s COE expires, you will no longer be able to drive it on the road. If you do so, it will be a violation of the law. As such, you should be aware of your COE’s expiry date and ensure that either it is renewed, or your car is scrapped before that. It is also worth noting that the process for scrapping a car is not immediate. In fact, the whole application process and documentation may take a week or two.
Prices Vary Depending on Several Factors
How much do you get for scrapping a car? The price that you will be paid for scrapping your car varies according to the supply and demand in the market. In a given year, according to your car model’s popularity on the market, a higher or lower price will be offered. As such, it pays off to be on the watch for the price trends on the market for your car model.
Another factor of your car’s scrap price is the amount of wear and tear that it holds. The longer a car has been on the road, the lower the price offered. When you combine the rate of depreciation with market force trends, you will be able to determine with basic accuracy, the optimal time to scrap your car.
Scrapping is not your only Option
Other than scrapping, you can consider exporting your car. Simply put, rather than tearing your car apart for scrap, you could sell your car to foreign exporters. These companies will transport your car overseas for a resale. Similar to market demand for scrap, the market for exporting also fluctuates. Generally, exporters do pay more, however they are also more selective with the cars that they choose to take on. Furthermore, if you choose export your car, then you need not go through with the hassle of de-registering it.
Choosing the Right Car Scrapping Agent
At its core, car scrapping or car exporting is a business. As such, you will not find uniformed rates and services across all service providers. Hence, it is important that you do proper research before agreeing to work with any one particular dealer. This is especially important for first timers as you will be relying heavily on their expertise to get you the best rates for your car. Additionally, working with a good car scrapping agent will help to simplify the entire documentation and paperwork process.