In Singapore, the process of deregistering your car may seem like a complicated and daunting task. However, understanding this process is essential for anyone looking to retire their vehicle or explore other transportation options. In this article, we will delve into the intricacies of deregistering your car in Singapore, including the requirements, step-by-step procedure, and the numerous benefits that accompany this decision. Whether you are looking to upgrade your ride or simply bid farewell to car ownership altogether, gaining a comprehensive understanding of deregistration can help you navigate through this transition seamlessly while reaping its advantageous outcomes.
Requirements for Deregistering Your Car in Singapore
To deregister car in Singapore, you must meet a few requirements:
The vehicle must be at least 10 years old from the initial registration date.
Valid Inspection Certificate:
A valid inspection certificate is mandatory to complete the deregistration process.
Settlement of outstanding fees:
Before you can proceed with deregistration, all outstanding road tax and parking fee payments need to be settled.
Additionally, it's important to note that if you have an existing loan on your car, you will need to settle it before initiating the deregistration process.
Step-by-Step Procedure for Deregistering Your Car
1. Gather necessary documents:
Before beginning the deregistration process, make sure you have the required documents ready. This includes your vehicle log card, identification documents, and any outstanding loan repayment receipts.
2. Cancel road tax and insurance:
Contact your insurance company to cancel your car insurance policy and inform them about the deregistration. Additionally, visit the Land Transport Authority (LTA) to cancel your road tax payment for the remaining period.
3. Submit application form:
Visit an LTA Customer Service Centre or use their online portal to complete and submit the Application for Vehicle Registration/De-registration form. Provide accurate information regarding yourself as well as details of your vehicle.
4. Pay necessary fees:
Once your application is processed by LTA, you will receive a notification with instructions on how to make payment for any outstanding fees such as deregistration fee and COE rebate fee.
5. Remove license plates from vehicle:
After completing all payments, remove both front and back license plates from your car as it is no longer registered.
6. Arrange towing or scrapping service:
If you plan on disposing of your car entirely, contact a reputable tow truck or scrapyard service provider to arrange for collection of the vehicle from a location specified by LTA within 10 days after deregistration.
7. Receive confirmation letter:
Upon successful completion of all steps outlined above, you will receive a confirmation letter from LTA confirming that your car has been officially deregistered.
Benefits of Deregistering Your Car in Singapore
Save on Expenses
Deregistering your car in Singapore can help you save a significant amount of money. With the high costs associated with owning a vehicle in the country, such as road tax, insurance premiums, and maintenance fees, deregistering can be an effective way to reduce these expenses. By no longer having to pay for these recurring costs, you can allocate those funds towards other financial priorities or even put them towards purchasing a new vehicle if needed.
Monetize Your Car
If you choose to deregister your car in Singapore, you have the option to sell it to scrap yards or export it overseas. Car Scrapyard will pay for your car based on its weight and condition. Alternatively, exporting your car allows you to fetch a potentially higher price depending on the make and model of your vehicle. This gives you an opportunity to recoup some of your initial investment or get cash upfront that can then be used for other purposes.
Avoid Depreciation Costs
Cars depreciate over time due to factors such as wear and tear and technological advancements. When you deregister your car in Singapore instead of renewing its COE (Certificate of Entitlement), which has a limited lifespan, you avoid facing further depreciation costs. Deregistration allows you to cut ties with an aging vehicle that may no longer hold significant resale value while still ensuring that any remaining value is maximized by selling it before it further depreciates.