Calculating your car scrap value will be among your chief concerns when you decide to scrap your aging car. In doing so, you will be able to gauge if the offered sum for your car is fair and acceptable. Furthermore, you will be able to get the highest salvage value available.
Several factors are used to determine the compensation that you will receive for scrapping your car. This includes:
- The amount of COE rebate
- The amount of PARF rebate
- The condition of your car
- The number of years that your car has been in used
- Market conditions
Rebates
You can expect to receive up to two types of rebates when you scrap your car, the COE & PARF rebates.
COE Rebate
The COE rebate’s purpose is to refund you excess time that you have during a single 10 year COE period for your car which you have not utilised. For example, out of a 10-year period, if you scrap your car at the start of the 8th year, then you will receive a rebate that compensates of the remaining two years. You can therefore summarise that the later you scrap your car in a COE cycle, the lower the COE rebate you will enjoy.
PARF Rebate
The PARF rebate is only given to car owners who scrap their car within the first 10 year COE period. It incentivizes car owners to scrap their car instead of renewing their COE. This helps keep newer cars on the road. Similar to the method of calculation for the COE rebate, the PARF rebate that you enjoy will be more when given closer to the start of the 10 year cycle rather than the end.
Car Body Factors
The condition of your car as well as the mileage or durationon the road will also affect its value.
Condition
Car dealers will adjust their evaluation of your car’s value based on the condition in which it is presented to them. If there are any spoilt parts, scratches or other defects, then you should expect a below average price offer from them. As such, it is recommended that you perform DIY repairs on the car where possible before you allow the dealer to make the assessment.
Duration of Operation
The longer that your car has being used on the road, the lower the value of your car. Duration is used a proxy for wear and tear that is bound to happen for vehicles that have been driven. Just like any other physical asset, wear and tear will lead to a depreciation of your vehicle’s value. As such, similar to that of the COE rebate & PARF rebate, the earlier in the cycle that you scrap your car, the higher amount of compensation you will receive.
Market Conditions
Market conditions of demand and supply can drastically affect the price offer that dealers will make to you for your car. If you are fortunate, then for this year, your car model will be in high demand but low in supply. These conditions will drive up the price that car scrap agents are willing to pay.
