Deregistering Your Car in Singapore: Complete Guide

Why Deregister a Car in Singapore?

Every car in Singapore has a finite lifespan on the road, determined by its Certificate of Entitlement. When the 10-year COE approaches expiry, the vehicle owner must decide whether to renew the COE at the Prevailing Quota Premium (PQP), export the vehicle, or deregister it. Deregistration, commonly referred to as scrapping, is the process of permanently removing a vehicle from Singapore's vehicle register. Upon deregistration, the vehicle is either physically scrapped at an authorised scrapyard or exported out of Singapore.

Deregistration is not just an end-of-life event. Owners may choose to deregister before the COE expires for several reasons: upgrading to a newer vehicle, leaving Singapore, financial considerations, or simply deciding that they no longer need a car. Understanding the deregistration process, the rebates available, and the logistics involved ensures you maximise your financial recovery and avoid unnecessary delays.

Rebates You Receive Upon Deregistration

The financial rebates upon deregistration are a crucial part of the calculus. Two types of rebates may apply:

PARF Rebate

The Preferential Additional Registration Fee rebate is available only for vehicles deregistered within their original 10-year COE period. It is a refund of a percentage of the Additional Registration Fee (ARF) originally paid, decreasing as the vehicle ages:

Vehicle Age at Deregistration	PARF Rebate (% of ARF)
Not exceeding 5 years	75%
Above 5 to 6 years	70%
Above 6 to 7 years	65%
Above 7 to 8 years	60%
Above 8 to 9 years	55%
Above 9 to 10 years	50%

For a vehicle with an ARF of $40,000 deregistered at 7 years of age, the PARF rebate would be 65% x $40,000 = $26,000. Use our PARF Rebate Calculator to calculate your exact entitlement, and our ARF Calculator to verify the original ARF amount.

COE Rebate

The COE rebate is a pro-rated refund of the COE premium based on the remaining validity at the time of deregistration. This applies to both original and renewed COEs. The formula is straightforward:

COE Rebate = (Remaining months of COE / Total COE months) x COE premium paid

For example, if you paid a $100,000 COE and deregister with 36 months remaining out of the original 120-month period, the COE rebate is (36/120) x $100,000 = $30,000.

Note: For renewed COE vehicles, the calculation uses the PQP paid at renewal, not the original COE premium.

The Deregistration Process via OneMotoring

All vehicle deregistration in Singapore is handled through LTA's OneMotoring portal. Here is the step-by-step process:

Step 1: Settle Outstanding Obligations

Before you can deregister, ensure there are no outstanding:

• Road tax arrears
• Traffic fines or composition sums
• Outstanding hire-purchase or loan (the finance company must release the vehicle)
• Parking violations

If you have an outstanding car loan, you must obtain a letter of release from your finance company. This confirms that the loan has been settled and the vehicle is no longer under a lien. Some finance companies take 3 to 7 working days to process the release, so plan ahead.

Step 2: Choose Your Deregistration Method

You have two primary options:

• Scrapping: The vehicle is physically destroyed at an authorised scrapyard. This is the most common method for older vehicles with limited export value.
• Export: The vehicle is shipped out of Singapore to another country. This is common for relatively newer vehicles or models that are popular in overseas markets (particularly in neighbouring countries).

Step 3: Engage an Authorised Scrapyard or Exporter

If scrapping, you must use one of LTA's authorised scrapyards. You cannot simply abandon or privately dismantle a vehicle. The scrapyard will handle the physical disposal and coordinate with LTA on the deregistration paperwork. Most scrapyards offer a small scrap value for the vehicle based on the weight of recyclable materials, typically $100 to $500 depending on the vehicle size.

If exporting, engage a vehicle exporter who will handle the shipping logistics and LTA export documentation. The export value depends on the vehicle's condition, model popularity in the destination market, and remaining COE validity.

Step 4: Submit the Deregistration Application

1. Log in to OneMotoring (onemotoring.lta.gov.sg) with Singpass.
2. Navigate to "Deregister Vehicle" under the vehicle services section.
3. Select the deregistration method (scrap or export).
4. Confirm the vehicle details and submit the application.
5. Arrange for the vehicle to be delivered to the authorised scrapyard (for scrapping) or the port (for export).

Step 5: Surrender the Vehicle

Deliver the vehicle to the authorised scrapyard or export facility. Remove all personal belongings and any aftermarket accessories you wish to keep. The scrapyard will issue a receipt confirming acceptance of the vehicle. The number plates are surrendered at this point.

Step 6: Receive Your Rebates

Once the deregistration is processed by LTA, the PARF and COE rebates are credited to your designated bank account. This typically takes 7 to 14 working days after the vehicle is confirmed as scrapped or exported. If there is an outstanding loan, the rebate may be paid directly to the finance company first, with any excess released to you.

Timeline and Planning

Deregistration is not an instant process. Here is a realistic timeline:

Step	Estimated Time
Settle outstanding fines and loans	1 to 2 weeks
Obtain finance company release letter	3 to 7 working days
Submit deregistration application	Same day (online)
Deliver vehicle to scrapyard	1 to 3 days
LTA processing and rebate payment	7 to 14 working days
Total	3 to 5 weeks

Start the process at least 4 to 6 weeks before your intended deregistration date to account for any complications, particularly with finance company paperwork.

The Export Scheme

Exporting your car instead of scrapping it can sometimes yield a better financial outcome, especially if the vehicle is in good condition and the model is popular in export markets. Common destinations include Malaysia, Myanmar, Sri Lanka, and various African and Caribbean countries.

Advantages of Export

• Higher total recovery: the export price plus rebates may exceed the rebates-only amount from scrapping.
• Vehicle continues to be used rather than destroyed, which appeals to environmentally conscious owners.
• Some exporters handle all logistics, making the process relatively hassle-free.

Things to Consider

• Export processing can take longer than scrapping due to shipping logistics.
• The export market price depends on demand in the destination country and currency exchange rates.
• You must ensure the vehicle is roadworthy and meets the import requirements of the destination country.
• Some older vehicles have minimal export value, making scrapping the more practical option.

Authorised Scrapyards in Singapore

LTA maintains a list of authorised scrapyards that are approved to accept and process deregistered vehicles. These include large operators across the island. When choosing a scrapyard, consider:

• Location: Choose one that is convenient for delivering the vehicle or that offers towing services.
• Scrap value offered: While the differences are small, getting quotes from two or three scrapyards can yield an extra $100 to $200.
• Processing speed: Some scrapyards process the paperwork faster than others.
• Additional services: Some offer car rental while you are between vehicles, or can arrange for towing if the vehicle is no longer roadworthy.

What Happens After Deregistration

Once your vehicle is deregistered:

• The vehicle's registration number is retired (you cannot transfer it to a new car).
• Your insurance policy should be cancelled; contact your insurer for a pro-rated refund of any prepaid premium.
• Unused road tax is refunded as part of the deregistration settlement.
• Your ERP account linked to the vehicle should be deactivated.
• A replacement COE enters the supply pool, making one additional COE available for the next bidding exercise.

To compare the financial outcomes of deregistering versus renewing, use our Renew vs Scrap Calculator.

Frequently Asked Questions

Can I deregister my car before the COE expires?

Yes. You can deregister your vehicle at any time during the COE period. In fact, many owners deregister before the 10-year mark to claim the PARF rebate (available only within the first 10 years). Early deregistration entitles you to both the PARF rebate (if applicable) and the pro-rated COE rebate for any remaining COE validity.

What if I still owe money on my car loan?

You must settle the outstanding loan before deregistration, or arrange with the finance company to receive the rebates directly. Most finance companies will issue a settlement figure and a release letter once the full amount is paid. If the combined PARF and COE rebates exceed the outstanding loan, you receive the difference. If the rebates are less than the outstanding loan, you must top up the shortfall in cash.

Can I keep my registration number for a future vehicle?

No, under normal circumstances. When a vehicle is deregistered, the registration number is retired. However, if you have a personalised number plate obtained through the LTA auction, there are provisions to retain the number for transfer to a new vehicle, subject to LTA's terms and conditions.

How much does it cost to deregister a car?

There is no LTA fee for deregistration itself. The costs involved are indirect: settling any outstanding loans, potential towing costs if the vehicle cannot be driven to the scrapyard, and the opportunity cost of time spent on the process. Scrapyards do not charge for accepting the vehicle; they pay you a small scrap value for it.

Is it better to scrap or export my car?

It depends on the vehicle's age, condition, and market demand. Newer, well-maintained vehicles from popular brands often fetch a reasonable export price on top of the PARF and COE rebates. Older vehicles in poor condition may have negligible export value, making scrapping the simpler option. Get quotes from both scrapyards and exporters to compare the total recovery. Our Renew vs Scrap Calculator can help you model the financial scenarios.