If you decide against renewing your car’s COE and have decided to scrap it, then you should first find out how much you can get for scrapping it. When you scrap your car in Singapore, you will receive a COE rebate and potentially a PARF rebate as well. In addition to these rebates, you should receive a sum of compensation from your scrap car agent. This sum serves as payment for the value of your car’s body.
How to scrap my car? What exactly affects the value of its price? Read this article to find out the two main factors that affect the value of your car’s body.
Your Car’s Condition Affects its Value
A dealer will assess your car’s condition based on how many years it has been in used as well as the amount of wear and tear it has sustained. Like any asset, a car’s value is depreciated over time to account for its reduction in value. As such, generally the longer a car has been on the road, the lower its value will be.
Any periodic maintenance or repairs that have been conducted on your car will likely give it a better assessed value since its condition would be better. However, this is not to say that you should send it for maintenance right before you deregister your car. Depending on the costs involved, in doing so you may end up with lesser margins.
The Market’s Demand for Your Car Model Affects Its Value
The market’s supply and demand for your car model will affect its price. If you are fortunate to be in a year whereby the demand for your car model exceeds the supply, then you will likely be offered a higher price. Conversely, if supply outstrips demand, you will find relatively lower offers on the market.
Studying the demand and supply trends in the market could give you an idea of the best time to deregister your car. At which point, you would find a relatively optimal price for your car model.
Ultimately, it is the Dealer Who Makes the Offer
At the end of the day, it is the authorised car scrap agent who will make you an offer based on his or her assessment of the aforementioned factors. As such, the price offered for your car may vary from dealer to dealer. However, price is not the sole consideration when picking a scrap car agent. Other factors that should be considered include:
- Reputation and customers reviews
- Hassle free experience
- Transparency of processes
- Absence of any unfavourable conditions or exclusions
- Proximity to your home
Once you have weighed these factors, you can select the right scrap car dealer for you. The dealer of your choice will guide you through the entire car scrapping process.