It is no secret that car ownership in Singapore is very expensive and the process of getting true ownership is complex. Well, Singapore is a small country, and the government wants to maintain the number of vehicles running around the city-state.
Renewing your Certificate of Entitlement is always a practical solution to maintain car ownership in the next few years. However, this is not always a viable option, and there are many reasons why you should also consider scrapping your car.
To help you decide on choosing between deregistering your car or renewing your COE, here are some of the factors you need to consider before making a move.
Reasons why you need to renew your COE
Your car is in good shape
People didn’t realize that modern cars are much more durable than what they initially thought. It is not a surprise that most Japanese cars could last a decade, and you can still hit significant miles with their original parts.
Also, the technology of the Japanese when it comes to car engineering is above par. If your car is in really good shape, then there is no reason to scrap your vehicle.
You own a regular car
Regular cars have parts that are easier to find when you need them compared to old cars. Hence, if parts of your car need to be replaced, you won’t be stressed out on searching above and beyond because they are readily available.
Contrastingly, old cars could look classy and cool but looking for compatible replaceable parts for them could be a nightmare. Unless they are vintage models, you should scrap your car.
It is on the premium model
Obviously, luxury or sports cars are much more expensive and replacing them could be disappointing. Afterall, most luxury cars have a sentimental and financial value that is hard to replace by a new vehicle.
Reasons why you need to scrap your car
It has irreparable damages
Damage comes in many forms, it could have suffered a huge accident in the past that left irreparable damage or it has gone through long years of neglect.
Either way, you will think about making massive repairs that are much more expensive than what you will pay for maintenance on a new vehicle. This could be fixed if you know a really good mechanic that could fix its individual issues at a low price but if not, then buying a new car would be a viable option.
If you think that your car will consume more money because of the maintenance and repair alone, then it is time to move on to a new model.
It has high PARF rebates
Revalidating your COE also means sacrificing your PARF rebates. If your car hasn’t reached the 10-year duration yet but has accumulated high PARF rebates, then it is time to deregister your car and scrap it.
It has bulky engines
Some older models tend to have a larger capacity engine that also has the same efficiency with modern cars. However, larger engines also cause high road tax, which is a major problem. Unless your vehicle is a vintage classic, you can get a more efficient and less bulkier engine with modern cars plus less road tax.
The bottom line
Car ownership in Singapore is expensive and the process of bidding for a COE grant is complex too. This is why you need to think deeply and consider a lot of factors before you proceed to renew your COE or deregister your car to buy a new one.
If you find this guide helpful, there are other lifestyle articles and SG news like this on The Straits Times.