The parts of the cars become trash, when it meets with an accident. After then, the car goes to the garage for it to get scrapped out. In Singapore, generally people wants to get rid of their old cars with high-mileage. To scrap car, they need to de-register the vehicle and must follow the proper disposal procedure. Singapore has various avenues which would help the people to scrap their cars. Many people prefer to sell the cars to the junk yard and many prefer to sell them by exporting it as second hand vehicles. In both the cases, the vehicle should undergo the proper procedure for scrapping before it is being bought as a new entity.
To scrap the car in Singapore, one should follow three major rules. People should de-register the vehicle initially which means giving up the ownership of the car and surrendering it to the specific disposal centre. Before giving up, one needs to clear the outstanding loan and road tax. People either have to export it to other markets or send to junk yard to get it crushed. After de-registering, one should apply for Preferential Additional Registration Fee(PARF) and COE rebate. The final step is valuation of the car. The valuation of the car is done by LTA approved junk yard. The final valuation depends on various factors of the car. This includes car’s model, supply and the demand even if the car has been sent as junk to the junk yard.
