Blog - Wagon Mate Pte Ltd

3 Ways to Encash your Vehicle PARF Value

December 18, 2020
wagon mate scrapyard picture

Overview, advantage & disadvantage of each method.

To apply for PARF value and any remaining COE value, you will need to deregister and dispose of your vehicle in accordance to the requirements of the Singapore Land Transport Authority. If you decide to extend the Certificate of Entitlement for another 5 or 10 years then the PARF value of your vehicle will be forfeited. Below are 3 ways to dispose your vehicle and get back your PARF Value in Singapore.

Option 1 -LTA Appointed Scrapyard

There are 4 appointed scrapyards in Singapore at the time of writing. When your vehicle reaches the 10th year mark you can tow or drive (only before 10 year mark) your vehicle to any of the below scrapyards. 

1. Chuan Machinery Pte Ltd – Address: 32 Tuas South Street 3 Singapore 638029
2. Hup Lee Leong Hardware Pte Ltd  – Address:26 Sungei Kadut Street 3 Singapore 729153
3. Kheng Keng Auto Pte Ltd – Address 47 Sungei kadut Loop Singapore 729512
4. Kiat Lee Machinery Pte Ltd – 213 Kranji Road Singapore 739485

When you are within the scrapyard compound you can pass your vehicle to the personnel at the scrapyard, thereafter login into www.onemotoring.com.sg with your Singpass to deregister your vehicle, the scrap yard personal will update the Land Transport Authority systems and in a few minutes, you can apply for your PARF and remaining COE (if any).

Steps
1. Check with all 4 scrapyards to find out the highest price for your vehicle.
2. Naturally, go to the scrapyard that offered the highest price for your vehicle.
3. At the scrapyard, handover your vehicle to the scrapyard personnel > Sign the Sales and delivery agreement > Get your payment.
4. Login to your www.onemotoring.com.sg > Deregistered your vehicle (outstanding loan must be settled first) > Go to ownership> Deregistration> Apply to deregister vehicle > Select the vehicle to deregister > Confirm details > LTA will send you an OTP> Confirm deregistration . You will get an acknowledgment from LTA that your vehicle is deregistered. 
5. The scrapyard will update LTA system that your vehicle is disposed with at the Scrapyard
6. Login www.onemotoring.com.sg with your singpass > Go to Ownership> PARF / COE rebate > Apply to encash rebate > Select the vehicle to apply the rebate > confirm details.
7. You will receive the rebate from LTA in about 2 weeks’ time. 

Overview: This is a rather simple process, where you dispose the vehicle at the scrapyard. Vehicle of any conditions for example well kept, export condition or vehicles that are badly damaged due to accident, flood, or breakdown are accepted at the scrapyard. 

Advantage: As these scrapyards are LTA appointed they bind to strict LTA regulation,  turn around of PARF value is secured in about 2 weeks’ time.

Disadvantage: The vehicle is going to be scrap regardless of its condition. Even if the vehicle is well kept with export or resale (renew COE ) opportunities. 

Option 2 - Store at Export Permit Zone (EPZ) Pending Export

There are 3 appointed Export Permit Zone (EPZ) in Singapore at the time of writing. Export Permit Zone are designated location where deregistered vehicle can be store before Exporting to another country.  Below are the operators managing the Export Permit Zone in Singapore.

1. Autoexport & EPZ Pte Ltd – Address: 4A Refinery Road, Singapore 628194, Tel: 6797 9890
2. Boeki Auto & Marine Pte Ltd – Address: 39 Kranji Link Singapore 728649, Tel: 6368 5005
3. Cogent Automotive Logistics Pte Ltd – Address: 200 Turf Club Road Singapore 287994, Tel: 6262 6034

If you plan to export your vehicle to another country, you can send your vehicle to the Export Permit Zone while you arrange for shipment for the vehicle to be sent. 

Steps:
1. Make sure your vehicle can be exported. Different countries has their own conditions to import used vehicle, condition like age of vehicle, CO2 emissions, mileage could be importing factors.
2. Call the Export permit zone operator. Find out 2.1) if they have storage space 2.2) Price for Storage  2.3) Support in the documentation for export.  
3. Select the Export Permit Operator and Drive or Tow your vehicle to the EPZ operation
4. Handover the vehicle to the EPZ operator > the EZP Operator will update LTA  systems that your vehicle is stored at the EPZ pending for Export
5. Login www.onemotoring.com.sg with your Singpass > Go to Ownership> PARF / COE rebate > Apply to encash rebate > Select the vehicle to apply the rebate > confirm details.
6. You will receive the rebate from LTA in about 2 weeks’ time. 

Overview: This is not a straightforward process, generally the vehicle to be export must be of roadworthy condition. However for almost 10 years, old vehicles in Singapore with a mileage of around plus-minus 250,000km, mechanical wear and tear, engine oil leak, engine check light are not a rare sight. Your buyer/importer might request to have any vehicle issued fixed up at your cost before shipment. Your buyer must also be familiar with the import regulations of their home country. 

Advantage: Vehicles that has demand for Export will fetch higher price than sending them for scrap. 
Disadvantage: Owner will need to bear the cost of export, which includes EPZ storage charges, cost of repairing the vehicle before exporting to the buyer, risk of non payment from overseas buyer, time invested to find a oversea buyer. 

Option 3 - Engage a Car Dealer

By engaging a Car dealer, you are selling your vehicle with its PARF value and remaining COE. The car dealer becomes the rightful owner of the vehicle that was sold by you, payment is immediate, you will not need to encashment of PARF value as per above option 1 and option 2. As the dealer is now the new owner it is the dealer’s responsibility the submit the documents.  

1. Look for a trusted car dealer, a good way to start is to get a referral from a friend or relative who has engaged the dealer before.
2. Get a quotation for your vehicle > If the offer meets your target sale price arrange for the dealer to view your car to secure the offer.
3. Sign agreement > Get your payment only via bank transfer > only after you received your payment > Transfer vehicle ownership to the dealer 
4. Login to www.onemotoring.com.sg with your Singpass> vehicle hub> Ownership > Transfer Ownership> Apply to transfer> key in the next owner details > Name, ID Type, ID number, Contact > Confirm Details and Submit 

Advantage: Seamless method, the motor dealer become the owner of the vehicle, other than buying over the vehicle he buys over the ownership, which means they are responsible for the proper disposal, exporting, and documentation submission to LTA. Your payment is also instant as the dealer will pay the seller the full PARF amount plus the vehicle body price. 

Disadvantage: Car dealers might be selective on the vehicle they choose to buy as they might not have an avenue for all kinds of models. Usually, each car dealer has his niche, may it be COE renewal, exporting to various territory You might not be paid as much as exporting or renewing the vehicle COE and selling the vehicle on your own. The dealer who purchases your vehicle will need to make a margin from the sale of your vehicle.

We can dispose your vehicle, Get a Free Offer from us >

Should you buy a new Car with COE at $25,000?

July 17, 2018

Should you buy a new Car with COE at $25,000?
Category A COE for vehicle below 1,600cc and 130 horsepower closed at $25,000 in the 1st bidding of July 2018, that is $67,100 lesser to pay for Category A COE when you compare to Category A COE prices in the 1st bidding in Jan 2013 quota premium at $92,100. That is just less than 6 years ago!

What my Family and Friends has been asking
For the past two weeks or so, friends and family members has been asking me if this is the correct time to buy a car, a quick answer to their question would be: Yes! Because at least present buyers did not have to pay $92,100 for a 10 years COE.

Let’s compare a Mazda 3 brought in Jan 2013 and a Mazda 3 brought in July 2018
Let’s take a closer look at the below example, comparing a Mazda 3 purchased in Jan 2013 with a COE of $91,000 and a Mazda 3 in purchased in July 2018.

 Price List from Mazda Singapore Valid from 10 Jan 2013 to 23 Jan 2013

Model: Mazda 3 – 1.6L Sedan 4AT   Price                                                          $150,988
PARF rebate amount at end of 10 years                                                             $7,935
Depreciation or minimum cost of ownership per year                              $14,305

Price List from Mazda Singapore Valid from 16 July 2018 to 18 July 2018

Model: Mazda 3 – 1.5L Sedan 6AT Standard                                                           $87,300
Less PARF rebate amount at end of 10 years                                                           $7,149
Depreciation or minimum cost of ownership per year                                    $8,015

How much extra are you paying
You will be paying an additional depreciation of $62,900 if you brought a Mazda 3 in Jan 2013 as compared to buying a Mazda 3 in July 2018 with COE of $25,000 (Deprecation difference $14,305 – $8,015= $6,290 per year X 10 years ownership = $62,900)

$62,900 works out close to the COE difference of $67,100 between Jan 2013 and July 2018

How much is $62,900?
In my daily work, I deploy capital for returns greater the weight average cost of capital. So I cannot help but ask myself how much will $62,900 with a return of 5% per year compounded over 10 years become. The future value is a staggering $102,470! That could very much pay for an Insead MBA or around the world trip!

You are lucky if you are buying your First car
So, if you are buying your first car or adding a second car to your family needs, the present COE prices is definitely at your advantage, with a much lower capital layout.

The Challenges
Well, there will be a group of buyers looking to upgrade, trade in, or sell their car which was brought between 2012, 2013, 2014, 2015 where the COE is at the $90,000 to the $70,000 price range, they might face some challenges in getting a decent price for the sale of their car, naturally because the demand for used car has shifted to new car purchase as most buyer would also want to buy a new car with lower COE premium.

It might be a better option for those affected buyers with existing cars to sell or secure a buyer for their used car first, before shopping for a new car.

Act now!
Yes, with the COE supply increasing from 8,202 a month currently to 9,225 a month for the August to October 2018 period, COE price might go down further from $25,000. However, if you are not speculating COE for a living, we think it is a good time to buy a car!

COE price history source: https://www.lta.gov.sg/content/dam/ltaweb/corp/PublicationsResearch/files/FactsandFigures/COE_Result_2010_2013.pdf

Mazda 3, prices source:

http://www.sgcarmart.com/new_cars/pricelist/24/2013-01-11.pdf
http://www.sgcarmart.com/new_cars/pricelist/24/2018-07-16.pdf

About Author

Letter of Appreciation

August 16, 2016

We are thankful that we can do our very little part for Society For The Aged Sick. We believe that it is not all about the profit and loss, but to be of value to the society.

We welcome any organisation to reach out to us, it is our company vision to be of value and to serve the society. 

Wagon mate Admin Team