Are looking for a car scrap dealer in Singapore to help scrap your car? Unsure of the value that you will be receiving? If so then this article is for you, in it we will cover the various factors that are taken into consideration when determining the financial compensation that you will receive for scrapping your car in Singapore.
The Offered Price for Your Car
The first question that you would be asking is how to check scrap value of car Singapore. Afterall, money talks and the returns you would get for scrapping your car would then naturally be a major factor in selecting the partner agent for you.
When you scrap your car, you will receive financial compensation. This arrives in 3 forms:
- COE Rebate
- PARF Rebate
- Car body value
The COE rebate and PARF rebate are predetermined by the authorities and can be claimed through the official online channel. These rebates serve as compensation for any time your car would have left under its current eligibility. In other words, you would be claiming the value of loss time you had to drive your vehicle on Singapore’s roads.
On the other hand, the car body value is purely determined by the car scrap agent that you choose to work with. Different dealers will likely offer you different prices depending on various factors and negotiation terms. Commonly dealers rely on two things when calculating the value of your car.
Condition of Your Car
Firstly, the state or condition of your car. Like any other asset, a car faces depreciating value over time. As such, in general, the longer you wait to scrap your car, the lower the value you will receive. In more technical terms, dealers will look at the mileage that your car has covered during its lifespan to estimate the amount of wear and tear on its body. Furthermore, if their inspection reveals any defects, then you can expect the evaluation of your car’s value to drop.
Supply & Demand
Secondly, your car’s value is also largely determined by the market’s supply and demand for its model during a given year. If demand for your car model outstrips that of supply on the market, then you can expect to receive higher offers. As such, it is a good idea to begin getting an idea of market trends or your car’s worth years ahead of time. This will allow to get an idea of the optimal time to scrap your car.
Determining Fair Value
One way to determine if a dealer has offered you adequate compensation is to look at the average of several offers made form dealers in Singapore. Furthermore, you should take into account the value of your car in years prior to this year.