Singapore’s Land Transport Authority (LTA) is proposing that dealers take responsibility for the disposal of deregistered cars and provide proof of disposal, rather than the vehicle owners.
Authorised Exporter Scheme (AES)
Under the Authorised Exporter Scheme (AES), the LTA proposes for dealers or authorised exporters to bear the responsibility of disposing of deregistered vehicles and providing proof of its disposal. Previously, drivers or car owners were required to dispose of their vehicles and provide proof to the LTA within 30 days of deregistration. Under the proposal, drivers will hand over their vehicles to authorised persons or exporters for disposal.
In Singapore, vehicles are typically disposed of at authorised scrapyards or exported abroad. Owners may also store their deregistered vehicles in export processing zones (EPZs). Afterwards, the owner is required to submit a set of documents to the LTA, proving the disposal of the deregistered vehicle. The owner must submit genuine documents and evidence as they are held liable if the LTA finds their submission to be false or inaccurate.
After submission, vehicle owners receive rebates Certificate of Entitlement (COE) and preferential additional registration fees (PARF).
Regarding residual fees from COE and PARF, the LTA is also contemplating immediate disbursement of residual rebates instead of asking owners to wait for four to seven days.
Illegal use of deregistered vehicles
Using deregistered vehicles is illegal in Singapore. The LTA reported increasing cases of declared deregistered vehicles operating on public roads since 2023. In 2023, the number of cases reached 39, while 2024 had 75 cases of illegal use of deregistered vehicles. In 2025, the LTA recorded 122 cases in total.
Under Singapore law, a first-time offence will beget a violator a fine of up to SGD $20,000 (AUD $22,000) and/or imprisonment of up to 2 years.
The use of deregistered vehicles is not only illegal but pose as a safety risk if the vehicle is not insured.
On the contrary, the number of deregistered vehicles in Singapore have reached 70,748 vehicles, 55 per cent higher than the 45,575 vehicles deregistered in 2022..
Did you find this article interesting? Click the “heart” button above to give it a like!
