If you’ve decided not to renew your Certificate of Entitlement (COE), your remaining options are to either export your vehicle or scrap it. This guide will walk you through the process of deregistering your car in Singapore.

What is Car Deregistration?

Car deregistration is the official process of notifying the Land Transport Authority (LTA) that you no longer wish to renew your COE. Once you deregister your car, you must submit proof of its disposal within a month. Failing to do so is considered a serious offense in Singapore, so it’s important to avoid waiting until the last minute before your COE expires.

To minimize additional costs, such as towing fees (since your car cannot be driven once deregistered), it’s a good idea to engage a reliable scrap car dealer like Art of Caar before your COE expires.

What Rebates Are You Entitled To After Car Deregistration?

When you deregister your car, you are entitled to two main rebates from the LTA: the COE rebate and the PARF rebate. The total of these rebates is called your car’s “deregistration value” or “paper value.”

• COE rebate: This is based on the remaining value of your COE. The earlier you deregister your car, the higher the COE rebate you can expect.

• PARF rebate: This is a tax rebate calculated based on your car’s open market value (OMV). It only applies to vehicles that are under 10 years old, known as PARF cars.

If your car is over 10 years old and has had its COE renewed, it is classified as a COE car, and you will only be eligible for the COE rebate.

What Are PARF Cars and COE Cars?

• PARF Cars: These are vehicles still using their original COE, and they are eligible for both COE and PARF rebates. To qualify, the car must be under 10 years old.

• COE Cars: These are cars that have had their COE renewed, typically for more than 10 years. These cars are no longer eligible for the PARF rebate and must pay based on the prevailing quota premium (PQP) if the COE is renewed.

If you’re considering renewing your COE, it’s important to check the full process and costs involved before making your decision.

How to Deregister Your Car

Here’s a quick overview of the steps to follow when deregistering your car:

1. Send Your Car to a Scrap Car Dealer

   Start by getting a quote from Art of Caar, a trusted scrap car dealer. They will assess your car’s condition, model, and current market demand to provide a valuation.

   You’ll receive a free, no-obligation quote with no hidden fees, and Art of Caar will handle all paperwork related to the deregistration process at no extra cost.

2. Deregister Your Vehicle

   Before you can deregister your car, make sure all outstanding road taxes and car loans are settled.

   If you’re handling the deregistration yourself, you’ll need to prepare the necessary documents. However, you can simplify the process by working with Art of Caar, who will manage all the paperwork for you.

   Important: It’s illegal to drive or keep a deregistered vehicle on the road. If you are caught, you could face fines or imprisonment.

3. Encash Your COE and PARF Rebates

   Once your car is deregistered, you can apply for your COE and PARF rebates through the OneMotoring website.

   Alternatively, Art of Caar can assist with the encashment process. After assessing your vehicle, they’ll provide a quote, and once accepted, they’ll arrange a time to collect your car.

   Payment is generally made instantly via PayNow or bank transfer, but you can request another payment method if necessary.

4. Submit Proof of Disposal to LTA

   After your car has been deregistered and scrapped, you must submit proof of disposal or export documentation to the LTA within a month.

   Failure to su