Scrap Car – What It Means, When to Do It, and How to Get the Best Value

Do you have an old, damaged, or unused car sitting in your garage? If it no longer runs or is too costly to repair, it may be time to scrap your car. Many people don’t realise that even a non-working vehicle still has value. In fact, scrapping is not just about getting rid of junk — it’s also about doing it the right way, earning some money, and following proper laws.

In this blog, you’ll learn everything about scrap car services — what it means, when to scrap, how to scrap your car legally, and tips to get the best possible value from your old vehicle.

What Is a Scrap Car?

A scrap car is a vehicle that is no longer suitable to be driven or is considered unroadworthy due to damage, age, or high repair costs. Common reasons a car becomes scrap:

• It's more than 10–15 years old

• It has been in a serious accident

• It has major mechanical problems

• It has failed pollution or roadworthiness tests

• It has expired COE (Certificate of Entitlement) in Singapore

• It’s been unused and parked for too long

Instead of letting it rust or occupy space, the best option is to sell it to an authorised car scrapping service.

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Why Scrap Your Car?

Here are some top reasons to scrap your car:

• No resale value: The car is too old or damaged to be sold.

• Legal compliance: In places like Singapore, cars beyond 10 years old must be deregistered.

• Avoid fines or parking fees: Abandoned cars can result in penalties.

• Environmental safety: Old cars can leak oil, battery acid, or harmful fluids.

• Free up space: Old vehicles take up useful parking space.

• Earn some cash: Even a scrap car has value in metal, parts, and COE or PARF rebates (if applicable).

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When Should You Scrap Your Car?

You should consider scrapping your vehicle in the following cases:

• It fails multiple inspections or emissions tests

• Repair costs are more than resale value

• It has been declared total loss by insurance

• It has no valid road tax or COE

• You cannot find a buyer

Instead of spending money on a car that won’t last, scrapping it can be a smart financial move.

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How to Scrap a Car – Step-by-Step Process

Here’s how the scrap car process works in most places, especially in Singapore or India:

1. Find an Authorised Scrapping Company

Always choose an LTA-approved (in Singapore) or RTO-approved (in India) scrap yard or recycling centre. You can also use trusted online platforms like:

• DirectCars (Singapore)

• Mahindra Cero (India)

• OLX Autos

• Cars24 Scrap Car

2. Submit Your Car Details

Enter your car make, model, registration number, and condition. You’ll receive an estimated quote.

3. Schedule Pickup

Most scrapping services offer free doorstep towing. You just need to schedule a convenient time.

4. Provide Required Documents

Prepare the following:

• Car RC (Registration Certificate)

• Your ID proof

• Insurance (if still valid)

• Road tax details

• Loan clearance letter (if loan is pending)

5. Get Certificate of Scrapping

Once the car is scrapped, the recycler gives you a Certificate of Vehicle Destruction or Scrapping Certificate. In Singapore, this is needed for deregistration and claiming rebates.

6. Receive Payment

Payment is usually made the same day via bank transfer or cash, depending on your location.

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What Happens to a Scrapped Car?

After scrapping, your car goes through the following process:

• Reusable parts like batteries, tyres, and seats are removed and resold.

• Hazardous materials like oil and coolant are drained safely.

• Chassis and metal body are crushed, melted, and recycled for industrial use.

• Glass, plastic, and rubber are separated and sent for proper disposal or reuse.

It’s a full recycling process that helps protect the environment.

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How Much Can You Get for a Scrap Car?

The price of a scrap car depends on:

• Weight of the vehicle

• Type of metal and usable parts

• Market scrap rates

• Location of scrapping

• Vehicle condition

In Singapore or India, average prices may range from:

• Small car: ₹15,000 to ₹25,000 / S$500 to S$1,000

• SUV or larger vehicle: ₹30,000+ / S$1,500+

Always compare offers from 2–3 platforms or scrap yards before finalising.

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What to Do Before Scrapping a Car

Before handing over your car to a scrap dealer:

• Remove personal belongings

• Take photos for record (chassis number, etc.)

• Check for spare keys or tools

• Settle fines or loans

• Collect deregistration or scrapping certificate

If you’re eligible for PARF or COE rebate in Singapore, claim it through the LTA after scrapping.

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Benefits of Scrapping a Car the Right Way

• ✔️ Avoids illegal dumping or misuse of vehicle

• ✔️ Safe for the environment

• ✔️ Keeps your name clear from LTA or RTO records

• ✔️ Helps in claiming COE/PARF rebates (in Singapore)

• ✔️ Gives you instant cash for something no longer useful

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FAQs – Scrap Car

Is it legal to scrap a car without RC?

You may still be able to scrap your car with alternate documents and a police NOC, but the value and process may be affected.

Can I remove parts before scrapping?

Yes, but it may reduce the overall scrap value. Complete vehicles usually fetch better prices.

How long does the scrapping process take?

Usually 1–3 days, including pickup, inspection, and payment.

Do I need to go to the RTO or LTA myself?

If using an online platform or licensed scrapper, they usually handle all paperwork on your behalf.

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Final Words

If your car is too old, damaged, or no longer in use, the smartest thing to do is to scrap your car with the help of a trusted service provider. It’s safe, environmentally responsible, and helps you earn money from metal, parts, and possible rebates.

Don’t let your car rot in the driveway or risk fines for abandoning it. Book a scrap car service online today and get paid for clearing space and doing your part for the environment.

If you’re in Singapore, platforms like DirectCars make the process smooth and stress-free with instant quotes, free pickup, and full paperwork assistance.