Scrap or Export Your Car: Rebates, Quotes and Payouts
Reconcile body-only and inclusive disposal offers, PARF and COE rebates, loan settlement, deadlines and the paperwork owners need.
Before accepting a scrap or export offer, establish whether it covers the car's body alone or the entire disposal payout. PARF, unused COE value and the buyer's commercial offer are different amounts. Mixing them up can make a lower offer look better, or leave you expecting money that was already included.
A September Reddit discussion about scrapped cars illustrates the confusion: people discuss small body payments alongside much larger overall recoveries. Those anecdotes do not establish your car's value or where it will be exported. Ask for an itemised written offer and verify the statutory amounts independently.
The three amounts to identify
| Amount | What determines it | What to check |
|---|---|---|
| PARF rebate | Eligibility, vehicle age, qualifying COE cohort, ARF paid and applicable cap | The vehicle-specific LTA enquiry for your intended deregistration date |
| COE rebate | The eligible unused part of the COE and the applicable rebate basis | Expiry, original or renewed COE, and the amount shown by LTA |
| Body or export value | The buyer's commercial assessment of the vehicle | Condition, offer expiry, deductions, collection terms and whether rebates are included |
Start at LTA's PARF and COE rebate page and use its enquiry service. An advertised minimum PARF or a round-number dealer estimate is not a substitute for the actual vehicle record.
Do not assume the COE rebate uses the headline premium paid in every case. For an original Category E registration, LTA applies the lower of the Category E premium paid and the corresponding vehicle-category premium from the same exercise. Renewed COEs and special vehicle schemes require their own treatment. The enquiry avoids forcing a generic formula onto the wrong vehicle.
Compare two quotes on the same basis
Hypothetical example: assume LTA shows S$30,000 of PARF and S$8,000 of unused COE rebate for the same disposal date, and the lender's settlement amount is S$12,000. Both commercial quotes below assume the same vehicle condition. The numbers are invented, not prevailing scrap prices.
| Line item | Offer A: body only | Offer B: all-inclusive |
|---|---|---|
| Commercial quoted amount | S$2,500 | S$41,000 |
| PARF plus COE added separately | S$38,000 | S$0: already included in the offer |
| Gross total | S$40,500 | S$41,000 |
| All agreed collection and administration charges | −S$500 | −S$800 |
| Net before lender settlement | S$40,000 | S$40,200 |
| Lender settlement | −S$12,000 | −S$12,000 |
| Net recovery after settlement | S$28,000 | S$28,200 |
Offer B is S$200 better on these written terms. Adding S$38,000 of rebates to its S$41,000 headline would invent a second rebate payout. Equally, comparing S$2,500 with S$41,000 without checking what each includes tells you little.
This table compares eventual recovery, not the timing of cash. LTA requires outstanding loans and relevant matters to be settled before rebates can be used. Do not assume you can encash a future rebate first to settle the loan. Get the lender and disposal provider to set out who pays whom, when the finance is released, and any cash you must supply beforehand. If settlement is higher than the available proceeds, budget for the shortfall.
Put these terms on the quote before handing over the car
- The registration number, intended transaction date and the exact service: purchase of a registered car, scrapping, or export. These are different routes.
- Whether the price includes PARF and COE, who will receive or use each rebate, and what happens if the actual amount differs from the estimate.
- Every deduction, including towing, inspection, storage, handling and administration; whether the quoted total includes any applicable tax.
- The agreed condition, accessories and keys, the quote expiry, and the process for approving any new deduction after inspection.
- The payment schedule and recipient, lender settlement arrangement, and evidence you will receive for handover, deregistration and disposal.
Compare at least two written offers if time permits. A verbal “best price” is difficult to reconcile later. Keep payment references and signed receipts together with the quote; avoid relying on a chat screenshot that omits the final terms.
Follow the disposal route that applies to your vehicle
Read LTA's deregistration instructions before arranging collection. The owner remains responsible for proper deregistration, disposal and required documents even when a dealer handles the work. For the standard process, disposal and the required supporting documents must be completed within one month of deregistration. Some routes have a shorter physical-delivery deadline; a month is not a universal allowance for every step.
| Route | Important distinction |
|---|---|
| LTA-appointed scrapyard or export processing zone | Use the instructions and appointed facilities on LTA's page. Confirm the handover and proof required for your method of deregistration. |
| Export of a PARF-eligible vehicle | LTA's export workflow starts with deregistration, followed by export and submission of supporting documents within one month. |
| Export of a vehicle not eligible for PARF | LTA provides an export-first route followed by its specified digital deregistration and document submission. Do not copy the PARF-eligible sequence automatically. |
| Deregistration at LTA under the applicable counter procedure | LTA specifies towing directly to an appointed scrapyard or export processing zone within eight calendar days for that route. Check the separate document requirements. |
Do not drive a deregistered vehicle. Arrange lawful transport and confirm who bears towing or storage costs if the planned handover changes. If you want to retain the registration number, arrange this early; LTA permits retention before or at deregistration, or within one month afterwards under its process.
Receiving a rebate is a separate step
Eligible PARF and COE rebates can be encashed, used for eligible vehicle-related offsets or transferred under LTA's rules. Confirm which method your agreement uses. Complete disposal and clear the required outstanding matters before expecting the rebate to become usable.
LTA states that rebates are valid for 12 months from deregistration. That validity period does not extend the disposal or document deadline. Check the rebate record and payment details promptly rather than treating a dealer's handover receipt as proof that every LTA step is complete.
Close the remaining accounts and keep the evidence
After the confirmed handover, reconcile the actual amounts received with your quote. Check the vehicle's deregistration and disposal status, the finance settlement, and the rebate transaction. If a sum is missing, identify whether it is a commercial payment, lender issue or LTA rebate before pursuing it.
Contact the insurer about cancellation and any contractual refund, close or transfer season parking and vehicle-linked payment arrangements, and remove personal belongings and stored personal data. Ask how the OBU and payment arrangements should be handled for the chosen disposal route; do not dismantle the unit yourself. Our ERP 2 owner checklist covers the payment and device checks.
If the reason for disposal is an expiring COE, compare the net recovery with the cost of keeping the car before committing. The high-PARF renewal case study shows why the rebate given up matters as much as the renewal payment.
Official rules checked 14 September 2026 using the LTA links above. Commercial examples are hypothetical; Reddit anecdotes are not evidence of a guaranteed price or export destination.