How to Deregister a Car in Singapore: Process, Scrap Yards, and What You Get Back

Deregistering a car in Singapore is more financially significant than most people realise. Done at the right time, it returns a meaningful sum from PARF and COE rebates. Done poorly — or without understanding the 2026 PARF changes — you could leave thousands on the table or choose to deregister at precisely the wrong point in your car's life.

Here is the complete process, what happens with scrap yards, and how to calculate what you'll actually receive.

What Deregistration Means

Deregistering a vehicle permanently removes it from Singapore's vehicle registry. The car is either sent to a scrap yard for dismantling and recycling, or exported to another country. Once deregistered, the number plate is cancelled and cannot be reused on another vehicle.

When you deregister, you receive two government rebates:

• PARF rebate — a refund of a portion of the Additional Registration Fee (ARF) you originally paid, based on the car's age
• COE rebate — a pro-rated refund of the COE premium for any remaining months on the certificate

If your car is at its 10-year COE expiry with no time remaining, the COE rebate component is zero. If you deregister early — say, at year eight — you receive both a PARF rebate (at the 55% or 10% rate, depending on whether the old or new schedule applies) and a COE rebate for the remaining 24 months.

The Deregistration Process

Step 1: Get a quote from a scrap yard or export dealer

Before you initiate deregistration, approach at least two or three dealers to get quotes. They will offer a body value on top of the government rebates. Body value varies significantly by make and model — popular Japanese cars in good condition may fetch S$3,000–S$6,000 in body value, while older European models in poor condition may get S$500–S$1,000.

Step 2: Complete deregistration via OneMotoring

The owner (or an authorised dealer) initiates deregistration through the OneMotoring portal. You will need your Singpass login and the vehicle registration number. The portal shows you the current PARF and COE rebate amounts before you confirm.

Once confirmed, the process is irreversible. Do not proceed until you have checked these figures.

Step 3: Clear the vehicle

You must ensure any outstanding loans on the vehicle are fully settled before deregistration proceeds. If there is a remaining hire purchase balance, coordinate with your bank or financing company. Some scrap yards will handle the loan redemption coordination as part of their service — clarify this upfront.

Road tax paid beyond the deregistration date is refunded pro-rata.

Step 4: Hand over the vehicle

The dealer or scrap yard takes possession. You hand over the registration card (blue card) and both sets of keys. They handle the actual transport to the scrap facility or export yard.

Step 5: Receive payment

Government rebates (PARF + COE) are credited by the LTA, typically within a few days of deregistration. The body value payment is made by the dealer at handover. Get the full payment arrangement in writing before you sign anything.

LTA-Approved Scrap Yards

LTA-approved scrap yards are authorised to receive deregistered vehicles for dismantling. A list of approved scrap yards (also called Authorised Treatment Facilities, or ATFs) is available on the OneMotoring website.

Approved yards must comply with LTA environmental standards for handling the vehicle's fluids and components. Using an approved facility matters because the deregistration process is linked to an authorised party — you cannot hand a car to just anyone and claim it has been deregistered.

In practice, most used car dealers and COE renewal companies also have relationships with scrap yards and can handle the logistics. If you go through an intermediary, confirm in writing that they are using an LTA-approved facility.

Scrap vs. Export: Which Pays More?

Local scrap yards pay based on the metal recycling value of the car plus any resaleable parts. Export dealers pay more because they can resell the whole car in overseas markets where the vehicle still has years of usable life.

Export generally makes more sense for:

• Popular Japanese makes (Toyota, Honda, Mazda) — high demand in markets like New Zealand, Fiji, and parts of Africa
• Cars in good mechanical condition with a clean accident history
• Models that are no longer sold new in Singapore but remain common in other markets

Local scrap makes more sense for:

• European models with high local repair cost reputation that are harder to export
• Cars in poor condition that overseas buyers would reject
• Sellers who want a quick, simple process without the export paperwork

If your car is a Toyota or Honda in reasonable shape, always get an export quote before committing to local scrap.

The Budget 2026 PARF Impact on Deregistration Timing

For cars registered before 13 February 2026, the old PARF schedule applies:

For cars registered from 13 February 2026 onward, the new schedule cuts these rates by 45 percentage points across all brackets, and the maximum cap drops from S$60,000 to S$30,000.

What this means for deregistration timing:

If you own a pre-2026 car, the PARF value you hold is an asset that depreciates with time. Deregistering at year nine gives 50–55% of ARF; waiting until year ten gives 50%. The difference is modest, but if you're considering selling the car to someone who will deregister it shortly after, that PARF value is embedded in the car's price.

If you own a post-2026 car, there is almost no meaningful PARF value to preserve — at year nine you receive 10% of ARF, and the maximum cap of S$30,000 would only be relevant for very high-ARF luxury cars. The incentive to deregister "early to capture PARF" is largely gone for new car owners.

How to Calculate Your Expected Deregistration Value

Step 1: Find your ARF

Check your original vehicle registration documents or the OneMotoring portal. The ARF is the government tax you paid at registration, not the car's purchase price.

Step 2: Apply the PARF rate

Determine whether the old or new schedule applies (based on registration date vs. 13 February 2026), then apply the appropriate rate for the car's current age.

PARF rebate = ARF × applicable percentage, subject to the cap.

Step 3: Calculate the COE rebate

Remaining months on COE ÷ 120 months × COE premium paid.

Step 4: Add body value

Get quotes from at least two dealers — this component is negotiable and varies by make, model, and market conditions.

The total of PARF rebate + COE rebate + body value is what you take home at deregistration. The Singapore COE Navigator includes a worked calculation tool that lets you plug in your specific ARF, remaining COE months, and registration date to see your total deregistration value — and compare it against the cost of renewing instead.