Scrap Metal Loan Bank Financing
Scrap metal is precious and worth a lot per ton (or per kilogram). Most scrap metal transactions are profitable and dealers are able to make good money selling scrap metal.
In Singapore, we have tons of scrap metals because of motorists that scrap their cars. They may scrap because of their 10 years COE limit is up, or 5 years renewal COE limit is up.
Many scrap metal dealers encounter great deals weekly, finding cheap cars that are no longer valuable due to accidents, too much wear and tear, and not much value from PARF or COE, and hence can only sell for scrap metal value.
What is the scrap car procedure in Singapore?
- Scrap car dealers fork out cash to the car sellers to take over their car while transferring ownership at LTA to their company.
- The transfer can take places online (via PC or mobile phone) at LTA vehicle transfer website.
- The dealer will take over the car and drive off to his warehouse/carpark.
- They may take over the old car to use for a few months as the COE expires soon (collect car rental fees)
- Or they just immediately send it to a junkyard to crush them, weight and sell as scrap metal
- The scrap metal can be sold directly in Singapore’s junkyard or export overseas as metal.
If you have an old car to sell or scrap, you can easily find a good scrap car dealer in SGcarmart.com
How much you get for scrapping a car?
Singapore motorists get back the paper value of the car which is:0
Unused Paper Value = PARF value rebate + COE rebate + unused road taxes of the car
If you scrap your car a few weeks or months earlier, the government will return the unused PARF and unused COE portion of the vehicle to you so that you get back what you should have.
You will also get some money for the body value of the car. If the car is in good condition, the car may not be scrapped but sold as a secondhand car and exported to developing countries like Vietnam, Nigeria, Kenya etc.
Exporting your car will get you a better value than just mere scrapping. It does depend on whether the overseas market is healthy and has market demands for old Singapore cars.
If the car is not in good condition, there is not much value but the scrap metal value. The whole car will be crushed and sold as scrap metal.
How do I sell my car to a junkyard?
You can get second-hand dealer, or search for scrap car dealers in SGcarmarts.com. You can also DIY on how to scrap your car in Singapore. LTA no longer requires motorists to visit LTA counter physically to fill in a paper form, neither is a T-pin (or Tpin) required to give to the secondhand motorcar dealer.
Every transfer is done online and verified with your SingPass login.
- Get a quote from a car dealer for your car, arrange with him on time and location to take over
- Go to LTA website One Motoring, use your SingPass to transfer your vehicle to the buyer
- Once the car dealer gets the car, you will get paid.
What is the current price of scrap metal?
Scrap metal pricing depends on the current world market economy, and not just on Singapore’s current demand and supply for cars. The global rate now (updated in July 2019) is only about $390 USD per ton (about $500 SGD per ton of steel) for a processed steel billet. So you should not expect anything more than that for your car scrap metal.
Scrap Metal Loan for Dealers in Singapore
Many scrap metal dealers find good deals weekly, or even daily, but they face limitations due to limited warehousing space or limited capital. Banks may not provide capital loans financing to scrap metal dealers because they usually prefer bigger business deals. Bank capital flooring is tough too as they only lend flooring to big car traders.
You may seek local companies such as Timely Enterprise for innovative, LOW INTEREST capital loan for short term scrap car or scrap metal financing. Not only is the interest low that will help you make more money, but it will also allow you to have the capital fast for grab the quick deal.
Contact Timely with a circle of more than 10 scrap metal dealers currently in Singapore. Let Timely makes more money together with you.