The deregistration price of your car is the amount you will get back from the Land Transport Authority (LTA) upon deregistering your car for use in the country. Typically, it is the sum of the COE (Certificate of Entitlement) reimbursement and the PARF (Preferential Additional Registration Fee) refund.
Understanding the COE Rebate
If you deregister your vehicle before its COE expires, you will be given a rebate based on the amount you paid for the Quota Premium (QP), or the Prevailing Quota Premium (PQP) in the case of a renewed COE.
As an overview, when you deregister your car, you are entitled to get a rebate on the original COE paid proportionate to the amount of time remaining on it. In this way, even though you paid for 10 years worth in your current COE, you would not be surrendering all of it when you choose to deregister your car.
To be more specific, we can now look at the formula for computing the COE rebate:
COE rebate = QP or PQP of 10-year COE paid x Total unused period of COE/120 months
As seen here, tracking back to what you paid for your QP or PQP, and how much unused time of the COE is left, you can determine how much you will be receiving.
Understanding the PARF Rebate
The PARF rebate is only for vehicles that are not more than 10 years old. It is calculated based on the age of your car when you deregister, and the amount of Additional Registration Fee (ARF) you paid.
For cars that are not more than 5 years old, you would be entitled to 75% of ARF paid. Meanwhile, the percentage of ARF received in the rebate drops by 5% for each additional year used. This is till the 10th year or in other words, the expiry of the initial COE. At which point, no rebate will be granted at all.
If you find yourself in your car’s second COE term, and you decide to deregister it, you will just get the COE reimbursement. This is because no PARF rebate is granted beyond the 10th year of your car’s usage.
Whichever scenario you are in, the amount of rebate that you receive is known as the deregistration value.
Claiming the Deregistration Value of your Car
There are 3 ways you can redeem your COE & PARF rebates:
- Take them out in cash (encash)
- Use them to offset various taxes and fees when you register a new vehicle
- Transfer them to another party
Whichever way, you choose, you would have 12 months from the deregistration date to claim them.
Starting the Deregistration Process
Are you still unconfident about the whole car deregistration process in Singapore? In that case, a good place to start would be to speak to a car scrap Singapore agent. Do check with them on the individual steps to be taken towards both car deregistration and selling it off for scrapping or exporting.