faqs about scrapping

hkm_1 SG

let say i wish to scrap my car next year. what does qp mean in the paper? coe rebate mean what i get back from scrapping it right? thanks

SeeTees SG

Yes. qp = your "coe rebate" (actually this term is radically different in meaning in the showrooms but i guess we all know what you mean...) they mean the same thing. It's a prorate of the COE that you paid for. Basically its a pretty fair system. U pay for what you used. No additional charges. No penalties for early redemption. Only penalties are those imposed on your car if you scrap early. The % of OMV rebate decreases as time goes by but the impact are on those cars scrapped b4 the 1st 5 years... Government purposely did it to curb "wasteage" on those cars scrapped b4 the 3rd year cos' owners used to get 130% of the OMV rebate if they scrap early under the old PARF system. If your car is pretty new the perhaps on top of the COE rebate, scrap value(PARF) u may also receive an additional amount from the scrap dealer for the car body cos' they will eventually export the car to regional countries if the age of the car is still acceptable...

hkm_1 SG

my car is slighty above 3 yrs old. let say if i wanna scrap, so which of the two value do i get back? both the QP and COE rebate are two different values.

SeeTees SG

Below is an xtract from the onemotoring.com site:

Vehicles registered using Open Category (Cat E) COE

For vehicles registered using "Open" Category COEs, the rebate will be based on the QP of the "Open" Category, or its corresponding category, from the same tender exercise, whichever is lower (see example).
Vehicles de-registered within 2 years of their registration for the purpose of export

For vehicles de-registered within 2 years of their registration for the purpose of export, the rebate will be capped at 80% of the QP paid on registration. For vehicles registered using "Open" Category (Cat E) COE, the rebate will also be capped at 80% of the "Open" Category QP or its corresponding category, from the same tender exercise, whichever is lower.

Does your vehicle falls under this category? Only when we get this thing straight can I advise you further.

hkm_1 SG

no mine is under cat c. i also notice that they say parf is not applicable to me. what does it mean

hkm_1 SG

no mine is under cat c. i also notice that they say parf is not applicable to me. what does it mean

SeeTees SG

Cat C??? U mean u are driving a van or truck or something like this? Kangoo, Liteace? whichever. In this case, wat they annotate on your log card is correct. U get zero value back on your vehicle irregardless of when you scrap it. You only get back unused COE thats all.

SeeTees SG

Reason is becos Cat C vehicles are treated as company cars. Just like the Q plates of yesteryears which are also considered as company cars. And for company cars, the government will not rebate you a single cent in PARF when you scrap it. Simple logic, company cars are excess population on the road. They eat up COEs yet they dun really function as pple carriers moving the masses around. And equally they contribute to the pollution.

Its easy to understand why the government wants to do that. Imagine if you are the Tau Kay of a company. And you invest $ and $ to buy a fleet of Q plate Mercs, BMWs etc etc... U charge every single cent that you spent on the fuel, insurance, road tax etc to the company accounts as expenses. What do we have at the end of the day? As the Taxman I can't tax you for profits invested in these cars cos they are company assets. So, you get away wayang with a fleet of glamorous cars, pollute the air and yet you can liquidate these cars for cash anytime. The government realised this mistake and discontinued the Q plate registation. Company cars must be registered as G plates and these belong to Cat C vehicles. Y? No tau kay would go around wayang in a fleet of liteace or kangoo would he? It's a status thing. That's y nowadays there are fewer Q plates on the roads when their 10 years are up. In accounting practice, any $ charged as allowances or reimbursement for S plate vehicles are not considered as valid for company expenses. If the company want to pay for it then it's the company "pasar". These money spent will be included in the computation as profits and companies will still have to pay for the legible tax amount; whether or not they pay their employees these allowances...

So for you people out there asking for a higher price tag for your car allowances in your job hunt dun grumble that's its shrinking... All the bosses have no choice also...