• 1.COE Rebate
• 2.PARF Rebate
• 3.Compensation of vehicles after assessment at an LTA approved scrapyard

How is the price of Scrap Car being determined?

The scrap car value consists of two parts: the COE rebate and the PARF rebate.

COE Rebate

Most of the owners choose to scrap car in Singapore when the COE is near the expiry date. Some might want to scrap the car earlier to get more rebate from COE. You get a cash rebate based on the unused COE percentage. This is proportional to the number of months and days remaining in COE and is based on the last Premium Quota (QP) or Premium Quota (PQP) you paid!

The COE amount is determined based on the amount you paid when you first purchased or registered your vehicle. However, there are some exceptions to this:

If you dispose your vehicle for export after 2 years, different regulations apply to your vehicle.

If your vehicle is listed in the open COE category, the discount is based on the lower award contingent of the open category.

In general, the COE rebate can be calculated using the following formula:

COE Rebate = (Contingent Rewards Paid x Number of Months Remaining in your COE) / Total Months Purchased from COE

For example, you pay a quota premium of $35,000 for your COE. If you decide to deregister your car in Singapore after 8 years and 10 months, here are the details of the COE rebate you will receive:

Number of months remaining COE = 10 years - 8 years 10 months = remaining 14 months

COE Rebate = ($35,000 x 14)/129 months

Get $3,798.45 back in COE rebates on your car!

If your COE expires before you unregister your car, you will not receive the COE discount. At the same time, if you want to register a new car within 2 years of its registration, your COE rebate will be limited to 80% of the premium paid quota.

PARF Discount

The PARF rebate is a percentage of the Additional Registration Fee (ARF), a tax credit that is differentiated based on the market value of the vehicle. The additional registration fee is considered part of the vehicle purchase price.

In general, the more you pay for your car, the higher the PARF discount. If your car is more than 10 years old, you will not get the PARF discount because the PARF discount only applies to cars that are less than 10 years old.

So... Do I get a COE or PARF discount?

If your vehicle is less than 10 years old, you are entitled to BOTH COE and PARF rebates

The PARF/COE discount is valid for 12 months from the date of vehicle deregistration. You have 12 months to redeem all PARF/COE discounts from the opt-out date before they expire.

How do I redeem my discount?

There are 3 different ways to redeem your PARF and COE rebates. You can…

1. Monetize them

2. Use rebates to offset taxes and fees when registering a new vehicle

3. Transfer the discount to someone else

You can find detailed step-by-step instructions on how to do this on JA8 Scrap Car Singapore website. You can visit them to learn more!