Scrapping or deregistering a car
What LTA pays back when a car comes off the road, how to deregister it, and the deadlines that follow. Rules read on LTA’s pages on 24 October 2026.
Paid back by LTA if you deregister now
$33,000
$25,250 one year later
| PARF rebate | $21,000 |
| COE rebate | $12,000 |
| Lost by waiting a year | $7,750 |
Paid only once the car is scrapped or exported and loans and dues are cleared; to be claimed within 12 months.
Prepared by Radif Partners · Method · COE results read on 24 October 2026 (latest: 2nd exercise of October 2026)
Deregistering a car ends its registration in Singapore; it must then be scrapped at an LTA appointed scrapyard, stored in an export processing zone pending export, or exported. In return LTA pays two rebates: the PARF rebate, a share of the ARF paid that falls with age and stops at ten years, and the COE rebate for the unused months of the certificate. An eight year old car with $35,000 of ARF, a COE from before February 2023 bought for $60,000 and two years left on it returns $33,000: $21,000 of PARF and $12,000 of COE rebate. A year later the same car would return $25,250. Proof of disposal must reach LTA within 1 month of deregistration, the car loan must be cleared, and the rebates must be used within 12 months. Keeping or driving a deregistered car is an offence with heavy fines.
Scrap now or in a year
The calculator at the top shows what LTA pays if you deregister today and what the same car would return a year later. The difference is the cost of keeping the car one more year, before running costs. In the example above, waiting a year costs $7,750 in rebates: $6,000 of COE rebate, which shrinks every month, and $1,750 of PARF, which drops by a step on each anniversary. For a car on the newest PARF schedule the PARF steps are small, and the COE rebate does most of the work.
Three ways to dispose of the car
Scrapping at an LTA appointed scrapyard is the usual route for an old car. Storing the car in an LTA appointed export processing zone, for up to 12 months, lets it wait for a buyer abroad; when it leaves, the export documents must reach LTA within 14 days, or when the 12 months are up. Exporting directly requires customs and shipping documents, or proof of registration in the new country. Many owners hand the whole process to a motor dealer; LTA suggests using a CaseTrust accredited dealer.
COE rebate on your months left
COE rebate at deregistration
$27,000
| Value of one month of COE | $750 |
| Share of the COE left | 30% |
| Cap if exported within 2 years (80%) | $72,000 |
Before you go
The car must not be under financing: clear the loan first, because the rebates cannot be used while it is outstanding. Any road tax arrears or amounts owed to LTA are collected during the deregistration, and if the road tax has lapsed you pay arrears and late fees. Engine and chassis numbers must match LTA’s records. If you want to keep the registration number, apply before or at deregistration.
After deregistration
LTA notifies the last registered owner of the rebates granted and any arrears. Unused road tax is refunded automatically. The rebates are then valid for 12 months: you can encash them online, use them against the taxes and COE of your next car or the PQP of another car you own, or transfer them, as the PARF rebate page explains. A deregistered car has no road tax and no insurance and may not be driven; moving it means towing or transporting it. Keeping or using one can lead to a fine of up to $20,000 or 2 years in jail.
Special cases
Different steps apply when the car was stolen or lost through criminal breach of trust, when its owner has died or is an undischarged bankrupt, and for vehicles of diplomats; LTA’s deregistration page covers each. Motorcycles, goods vehicles and other vehicles without PARF follow the same disposal rules but receive only the COE rebate. A car that has been laid up at any point in its life has no PARF rebate either, even if it is under ten years old, so check its history before counting on one.
Scrap, sell or renew
Scrapping returns the rebates and nothing more. Selling to a dealer or a private buyer usually brings at least the rebates plus something for the car’s condition, and the buyer takes over the deregistration later. Renewing the COE keeps the car, gives up the PARF and costs the PQP; the COE renewal page compares that option, and the COE rebate page details how the unused months are counted.