A Car Dealer Experience on Scrapping / De registeration of his Own 10 years old car

This write up is about my own experience, as a pre own car dealer scrap my own 2006 Honda integra. Below are some pictures of my Honda Integra:

Sadly, my Honda Integra is reaching its 10 year old mark this June 2016, having being a trusty and loyal Japanese steed, it is sad to see my companion of 10 years go… The traffic jams we been through, the coffee I spilt, the Ikea furniture I tried to squeeze in the backseat, the thrill of speeding the North South Highway and of course I can still clearly remember the first day I picked up my car from the Honda delivery center (somewhere in Mandai). How fast 10 years has gone I suppose the memories will stay with me for a long time after June 2016

Being in the automotive industry for the past decade I know clearly that we have got no choice in Singapore when our Cars reaches the 10 year mark , basically there is only two options:

1st option – Renew COE
If I were to renew COE the Pros and Cons will be as follows:

Advantage:
-Being only driver of this Integra, I know the full service records, it has been well taken care by me and I know do not have any major service/ accidents or repair issues before.  
-Sentimental value that I won’t have to let my first 2 door coupe go.
-Perhaps it will give me a feeling that I am always young driving a 2 door coupe.

Disadvantage:
Mainly cost –
My Honda Integra was registered in 2006 June with a COE of S$13,000 (yes those were the days where a fresh graduate making monthly income of S$2000+/mth can afford his own car) and a OMV of S$ 20,763. At the end of 10 years my Rebate value is at S$11,419 – 55% of my OMV value S$20,763. If I were to renew the COE for another 5 years I would have to pay S$29,307 and S$58615 for another 10 year. The impact will be as follows:

Cost of owning the 2006 Honda Integra for the 10th to the 15th year:
 PARF rebate of S$11,419 will be forfeited, add cost of COE for 5 years = 11419+ S$29,307 = S$40,726 
Cost per year at S$8,145 for next 5 years

Cost of owning the 2006 Honda Integra for the 10th to the 20th year:
PARF rebate of S$11,419 will be forfeited, add cost of COE for 10 years = 11419+ S$58,614 = S$70.033, 
Cost per year at S$7,003 for next 10 years

Factors for I been considering
-LOAN:  If I can get loan approved for 10-20th year, usually banks are less willing to provide loan for COE renewal cars. I suppose the risk for the bank is higher, in the event if the Hirer refused or cannot pay the monthly installment, it will be more challenging for the bank to auction off a more than 10 years old car as compare to a less than 10 years old car.  
-WEAR and TEAR: Although my Honda Integra has served me perfectly for the past 10 years, looking forward the chances of major repair or replacement of Gearbox might not be evadable, with a current mileage of 260,000km on the counter (Staying in Woodlands and travel a bit for work); I would say the risk is pretty high. 
-ESCALATION OF ROAD TAX: The Road tax calculation for an 11 year old car is higher than any vehicles less than 10 years old.
-COST compare to a NEW car: In my Mid 30s a 4 door sedan might be more practical, I had my thrills and joy of driving a manual coupe for the past 10 years. Base on today price a Brand New Mazda 3 is priced at S$98,888 with a PARF rebate value of S$5,000 at the end of 10th year mark, the depreciation work out to be at S$9,300/year. Comparing to owning the Integra at S$8,145 per year, the cost of owning a Brand New Mazda 3 with 3 years warranty is just marginally higher.

The disadvantage clearly out weights the advantage, and it’s pretty clear that I will dispose/scrap/export my Honda Integra in June 2016… I will share with you my experience on how a Car dealer gets the best value for his own Car!

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Guide to De-register a 10 Year Old Car in Singapore

Guide to De-register a 10 Year Old Car in Singapore

Singapore LTA (Land Transport Authority) requires the vehicle owner to either de-register his/her car or renew the COE (Certificate of Entitlement) when it reaches its 10th year mark. COE renewal are available for another 5 or 10 years and you will need to pay the moving average of the COE prices (QPs) in the last 3 months(Click Here for Average 3 months Price), however due to the cost of COE most owner would choose to de-register his/her vehicle after 10 years.

Before the owner can only make an informed decision on whether to de register or renew the COE, only if the owner needs to know what is his PARF/COE Rebate at De-registration.   If he choose to renew the COE, he will NOT be entitled to the PARF/COE Rebate, on top of that he will need to pay for the moving average COE price from the past 3 months.

So, how is the deregistration value calculated?  There are two parts to the rebate value:

First part of the rebate –  COE rebate.
The COE rebate, is the remaining unused COE, it is calculated as per the below example:

COE Rebate = (COE paid Eg.$60,000 x Duration left until COE expires exp. 1 yrs)
S$60,000/10yrs x 1 year = S$6, 000

Next, the Second part of the rebate; PARF rebate.
PARF is the Percentage of the ARF (Additional Registration Fees) which is the tax paid when Vehicle is registered.

Age at De-registration (years)
PARF Rebate as % of ARF

Less than or Equal to 5 = 75%
Greater than 5 but Less than or Equal to 6 = 70%
Greater than 6 but Less than or Equal to 7 = 65%
Greater than 7 but Less than or Equal to 8 = 60%
Greater than 8 but Less than or Equal to 9 = 55%
Greater than 9 but Less than or Equal to 10 = 50%
Greater than 10 = 0.00%

100% of OMV (Open Market Value) will be used for the example.

Let’s say the OMV is $15000 for Car A, the ARF would be also $15000
Since Car A have just reach 5yrs the Parf rebate will be 75% of ARF.
So PARF rebate for Car A will be $11250

So the Scrap Value for the Vehicle would be:

$6000 COE rebate + $11250 PARF rebate = $17,250

As this can get confusing for most vehicle owner, you can simple use this LTA *LINKto help you with the Calculations on the Rebate value.

After some calculations and if you decide to de-register your vehicle after knowing the Rebate Value, the below are the guide to the procedures to de-register your car:

1.    Obtain a Transaction PIN from the LTA. A transaction PIN is a password you can use for certain transactions such as de-registering your car, dividing PARF (Preferential Additional registration Fee) rebate, transferring vehicle ownership, etc.

2.    Submit an online application to de-register your car. You can do that by logging-in to your e-Services@ONE.MOTORING account using one of the following:

·       SingPass (for Singaporeans or Singapore PRs)
·       EASY (for companies with EASY account and ACRA-registered business)
·       User ID and password issued by LTA (for foreigners and companies/business without EASY account)

This online application is basically an authorization that you make for a submitter to de-register the car .

3.    Within 5 days of the online application, send the car to an LTA Appointed Scrapyard. You should also bring some documents including:

·       Completed Form D01 (de-registration application form)
·       Original NRIC (for Singaporean, Singapore PRs, and Malaysian) or Passport (for foreigner other than Malaysian) of the submitter that you authorize
·       Road Tax Fees

4.    Proof of disposal of the de-registered car is submitted to LTA

Also, do note that Owners who wants to retain their vehicle registration number due to sentimental value; having had it for 10 years or even some memorable windfall from 4-D winning, you should do a Number Retention at LTA BEFORE the de-registration of your vehicle, the fee payable is S$1,300 to LTA, the retained number can be kept for up to 1 year. Thereafter when you replace the Retained Number to a New Car, LTA will refund you a S$1,200 and if you Replace it on a Used Car, there will be no refund (S$1300 for number replacement to used car).   

The above procedures might not be easy and deem confusing for some, you might even need to travel to LTA a number of times to get a de registration or Number Retention done.

If you looking for a hassle free way to de register your car, we can help!  Wagon Mate  provide COE renewal, De registration and Number retention Services! You do not even need to leave your door step!

Reach us at Tel: +65 6659 7183 or Email : info@wagonmate.com and we will get in touch with you!

 

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How do you Scrap / Dispose your 10 year old car in Singapore?

How do you Scrap / Dispose your 10 year old car in Singapore?

How do you Scrap / Dispose your 10 years old car in Singapore?

Have you ever wondered what to do with your 10 years old car? Should you sell or scrap your car?

In Summary there is TWO ways to do it:

FIRST Method DIY – Send it to a Scrap yard Singapore
What will happen is that you will drive your physical car to the scrapyard and let the scrapyard know that you are scrapping your car. The scrapyard will give you a value for your vehicle body. The scrapyard will also provide documents stating the date and time which you hand over your vehicle, liabilities of the traffic offence is as per the date and time stated in the handover time. 

Next you will need to inform LTA that your car is in the Scrapyard and you can De registered your vehicle.

There will be two forms you need to complete and submit to LTA
1) D01 Application for De-registration of a Vehicle
2) FR02 Application to Encash for PARF and COE rebate

You can print and complete the forms from the below link :

Link to print D01:
http://www.onemotoring.com.sg/publish/onemotoring/en/lta_information_guidelines/forms_download0.MainPar.8940.collapsePar.7872.File.tmp/D01.pdf

Link to Print FR02:
 http://www.onemotoring.com.sg/publish/onemotoring/en/lta_information_guidelines/forms_download0.MainPar.9520.collapsePar.26231.File.tmp/FR02.pdf

After the documents is duly completed and submitted the owner of the vehicle will get the Parf/COE rebate from LTA in 2-4* working weeks.

SECOND Method – You can sell the whole car with the COE/ PARF Rebate to a Car Dealer
Most vehicle owners will choose this method, because the owner will just basically sells the car to a car dealer, the dealer will buy the vehicle body(which scrapyard offers) together with the COE/Parf rebate amount. The owner will get the full amount via Cash/Cheque or Cashier order in the registered owner name at the agreed price by both parties. A sales/purchase agreement with the handover date and time is also provided.

The dealer then take over the ownership of the vehicle and will then decide to Scrap/export the car. 

You might be wondering, why would a car dealer purchase a 10 years old Vehicle with the COE and PARF, this clearly adds to more cash outflow as compared to purchasing only the vehicle body and get the owner to do the de registration and encash of PARF. The reason is because dealers who are able to buy over the PARF and the Vehicle body will have an competitive advantage over dealers that do not, it benefits the Seller as the Seller need not De registration the vehicle and apply the Encashment. The PRAF and COE rebate is immediate to the seller! 

**NOTE: If you wish to maintain your vehicle registration no./Car plate no., kindly do it before the time of de-registration at the Scrap Yard.

If you are like most car owner who prefer the Second method let WagonMate to help you dispose your car the hassle free way. Call us at 66597183 or drop us an email info@wagonmate.com

we are always happy to help!

Contact us for more details.

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