Local Guide

How to Scrap or Deregister a Car in Singapore

When your vehicle reaches the end of its useful life or its 10-year COE is nearly up, you’ll need to deregister it with the Land Transport Authority (LTA) before it can be removed from the road. The decision to scrap a car in Singapore is rarely just about getting rid of an old vehicle — it’s tied to your PARF or COE rebate, your road tax refund, and whether scrapping or exporting makes more financial sense. This guide walks through the process, the paperwork, and what to weigh, kept factual to LTA and OneMotoring.

Deregistration is the first step, not scrapping

In Singapore, a car cannot simply be sold for parts or driven off to a junkyard. Every vehicle must first be deregistered with LTA, which formally removes it from the register and ends your liability for it. Only after deregistration can the car be physically disposed of — either scrapped at an authorised facility or exported overseas.

You deregister a vehicle through the OneMotoring portal using Singpass, or your appointed scrapyard or exporter can handle the application on your behalf. Most owners go through a dealer or an authorised facility precisely because they coordinate the deregistration, the physical disposal, and the documentation in one transaction. Once deregistered, the vehicle’s number plate is effectively retired and cannot be driven on public roads.

Scrapping vs exporting: two ways out

After deregistration, your car follows one of two paths, and the route affects your rebate and your obligations.

Scrapping at an authorised facility

Scrapping means the vehicle is physically destroyed at an LTA-appointed scrapyard (sometimes called a registered Vehicle Disposal facility). The yard issues a Certificate of Destruction confirming the car has been dismantled and crushed. This is the common route for older vehicles with little resale value abroad. The scrapyard typically pays you a small sum for the scrap metal and salvageable parts, separate from any LTA rebate.

Exporting overseas

Exporting means the car is shipped out of Singapore — often to markets where right-hand-drive used cars hold value. An LTA-authorised exporter handles deregistration for export and must provide proof that the vehicle physically left the country (such as a bill of lading or export certification) within the stipulated period. If you deregister for export but cannot prove the vehicle left, LTA may require the rebate to be returned. Newer or sought-after models often fetch more through export than scrapping.

As a rule of thumb: cars near the end of a renewed COE with low market appeal tend to be scrapped, while relatively newer vehicles or popular models are more likely to be exported. The dealer or facility you engage will usually advise which gives you a better net return.

Understanding the PARF and COE rebate

The financial heart of deregistering a car is the rebate, and it comes in two forms. Understanding which applies to your vehicle is the single most important thing before you commit.

• PARF rebate (Preferential Additional Registration Fee): Applies to cars deregistered before they turn 10 years old. It is calculated as a percentage of the Additional Registration Fee (ARF) you paid when the car was first registered. The percentage steps down as the car ages, so the earlier within that 10-year window you deregister, the higher the proportion you recover.
• COE rebate: Applies when you deregister a car before its Certificate of Entitlement expires. It refunds the unused, pro-rated portion of the COE based on the months remaining. A car that has renewed its COE for a second 10-year term is generally not eligible for a PARF rebate, only the COE rebate.

Both rebates are issued by LTA, not by the scrapyard. You can use the rebate to offset the registration cost of a new vehicle, transfer it, or in many cases encash it. Because exact figures depend on your car’s original ARF, its age and COE balance, treat any quote in qualitative terms and verify the computed amount on OneMotoring before signing anything. Never accept a flat “trade-in” number without seeing how the rebate was worked out.

Road tax refund and outstanding obligations

When a vehicle is deregistered, any unused road tax is refunded automatically for the remaining full months, so you don’t need to apply separately. The refund is pro-rated, which is one reason it’s worth timing deregistration sensibly rather than letting paid-up road tax run down.

Before deregistration can complete, the vehicle must be free of obstacles: settle any outstanding traffic or parking fines, clear any season parking tied to the plate, and ensure there’s no financing lien still registered against the car. If the car is under a hire-purchase or loan, the financier’s interest must be discharged first. Cancel your motor insurance only after deregistration is confirmed — your insurer may refund the unused premium, subject to their terms.

The process and paperwork, step by step

1. Check eligibility and estimate rebates. Log in to OneMotoring with Singpass to view your vehicle’s rebate status, COE balance and any outstanding amounts.
2. Decide scrap or export. Compare the net return of each route for your specific car.
3. Choose an authorised facility. Use an LTA-appointed scrapyard or authorised exporter. They can submit the deregistration for you.
4. Hand over the vehicle and documents. You’ll typically need your identity document, the vehicle’s log card details, and the loan-discharge confirmation if applicable.
5. Deregister. The facility (or you, via OneMotoring) submits the application. The car must not be driven on the road once deregistered.
6. Receive your Certificate of Destruction or export proof. Keep this — it’s your evidence the disposal was completed correctly.
7. Collect rebates and refunds. Road tax is refunded automatically; PARF/COE rebates are processed by LTA and can be used, transferred or encashed.

Because dealers, scrapyards and exporters vary in the price they offer for the physical vehicle and in how transparently they present the LTA rebate, it pays to compare a few. You can find vetted businesses through our car dealers category, or browse the wider WhitePages.sg directory for related automotive services. If you’re handling a sale rather than a disposal, our guide on how to transfer car ownership in Singapore covers that route instead.

Related guides

• Car Services in Singapore: The Complete Guide
• How to Sell a Car in Singapore (2026)
• Best Car Dealers in Singapore (2026 Guide)
• EV vs Petrol Car in Singapore: Which to Buy
• New vs Used Car in Singapore: Which Is Worth It?

FAQ

How do I scrap a car in Singapore?

You first deregister the vehicle with LTA — through OneMotoring with Singpass, or via an authorised scrapyard or exporter who can do it for you — then physically dispose of it at an LTA-appointed facility. You’ll receive a Certificate of Destruction for scrapping, or proof of export if shipped overseas.

What is the difference between scrapping and exporting?

Scrapping means the car is dismantled and crushed at an authorised Singapore facility. Exporting means it is shipped overseas, usually because it still holds value abroad. Both require deregistration first, but exporters must provide proof the vehicle left the country; newer or popular cars often fetch more through export.

Will I get a refund when I deregister my car?

Yes, in most cases. Unused road tax is refunded automatically on a pro-rated basis, and you may be entitled to a PARF rebate (if deregistered before 10 years) or a COE rebate (for the unused portion of your COE). These rebate amounts depend on your car’s original ARF, age and COE balance.

Can I drive my car after it has been deregistered?

No. Once a vehicle is deregistered, it is removed from LTA’s register and cannot be driven on public roads. It must be transported to the scrapyard or to the port for export. Driving a deregistered vehicle is an offence.

Do I need to cancel my insurance when scrapping a car?

Cancel your motor insurance only after deregistration is confirmed. Your insurer may refund the unused premium subject to their own terms. You should also clear any fines, season parking and outstanding financing before deregistering, as these can hold up the process.