Scrap value
Scrap value is the amount paid to the owner of a deregistered vehicle, combining the PARF rebate (if eligible), any COE rebate, and the value of the physical vehicle.
What it means
When a Singapore car is deregistered before the end of its 10-year COE term, the owner receives three components: the PARF rebate (a percentage of the original ARF, declining with vehicle age), a COE rebate for any unused months of the original 10-year COE, and the scrap value of the physical car as paid by the appointed scrap yard or exporter. Together, these three are usually paid as a single cheque after deregistration is processed by LTA. Cars in good cosmetic and mechanical condition fetch better physical-vehicle values, and a clean inspection at deregistration reduces the risk of disputes. Renewing COE rather than deregistering forfeits the PARF and COE rebate components entirely, leaving only the eventual physical-vehicle scrap value at the end of the renewed term, which is why the renew-versus-deregister decision at year 10 is so financially significant.
Why it matters in Singapore
Scrap value is the back-end of the Singapore ownership economic cycle. Owners who pay attention to it during years 7 to 9 (by keeping paint, mechanicals, and documentation in order) consistently come out ahead of owners who let the car decline in the final years. That is where small, deliberate care decisions made earlier in the COE term pay back.
How Revol Carz handles this
Revol Carz often sees cars in the year before deregistration for a final round of paint correction, ceramic coating refresh, or panel work, all of which improve the car's presentation at the scrap yard or exporter inspection.