What happens after you sell your car

9 March 2026 · 10 min read · PaperValue.sg

GuideDeregistrationRefunds

You signed the papers, handed over the keys, and watched your car drive away with someone else behind the wheel. Relief. It's done.

Except it isn't. Not yet.

There's money sitting in various places that belongs to you — insurance refunds, PARF and COE credits. None of it shows up automatically. And there are accounts still billing you for a car you no longer own. Every week you don't sort this out costs you money.

Most people miss at least one thing on this list. The insurance is the big one — we'll get to that. Here's everything you need to handle, in order of urgency.

First: Who Handles the LTA Transfer?

If you sold to a dealer, they handle it. Deregistration, ownership transfer, all of it. They've done this hundreds of times. You just need to log into your OneMotoring account a few days later and confirm it went through. If it hasn't, call the dealer.

If you sold to a private buyer, the buyer initiates the transfer through OneMotoring, and you log in to approve it. Do this within 7 days. Late fees apply, and more importantly — until the transfer is done, the car is still legally yours. That means you're on the hook for any fines, tolls, or accidents. If the buyer is dragging their feet, follow up immediately.

If you're deregistering (scrapping or exporting), you either do it through OneMotoring or bring the car to an authorized scrapyard. The scrapyard handles the paperwork. LTA lists authorized scrapyards on their website.

Cancel Your Insurance (Do This Today)

This is the one that catches everyone.

Your motor insurance does not cancel itself when you sell your car. The dealer doesn't cancel it. LTA doesn't cancel it. Nobody cancels it. If you don't pick up the phone and do it yourself, you will keep paying premiums on a car you no longer own.

Call your insurer or log into their portal. Tell them the car is sold. They'll ask for proof — a screenshot of the LTA transfer confirmation works fine.

You'll get a refund for the unused portion — but not the full prorated amount. Most insurers apply a short-period rate, meaning you get back 80% to 95% of the remaining premium depending on your insurer. As of March 2026, FWD refunds 95%, Budget Direct/AIG/AXA refund 80%, and NTUC Income 85-90% — check with your insurer for current rates. If you paid $2,400 for a 12-month policy and cancel after 6 months, the remaining premium is about $1,200 — you'd get roughly $960 to $1,140 back. No refund if you've made a claim during the policy year.

Do this within a week. Every day you wait is a day you're paying for nothing.

If you're buying a new car, ask your insurer about transferring the policy instead of cancelling. It can save you the admin fee and preserve your No-Claim Discount (NCD).

Road Tax Refund

Important: road tax is only refunded when a car is deregistered (scrapped or exported), not when ownership is transferred to another person or dealer. When you sell to a dealer or private buyer, the remaining road tax transfers with the car to the new owner. There is no cash refund to you.

This means road tax is factored into the sale price, not refunded separately. If you've prepaid 12 months of road tax and sell after 6 months, the remaining 6 months of road tax belongs to the new owner. Smart buyers and sellers account for this in the negotiated price.

If you're deregistering the car (scrapping or exporting), then LTA does refund the unused road tax automatically. The prorated refund goes to the bank account linked to your LTA profile. Money arrives in 2 to 4 weeks.

PARF Rebate

PARF rebates only apply when a car is deregistered (scrapped or exported) — not when you sell it to a dealer or private buyer. If you sell your car, the buyer (usually the dealer) is the one who eventually claims the PARF rebate when they deregister or re-sell the vehicle. This is factored into the price they offer you.

If you're deregistering the car yourself and it's under 10 years old, you're entitled to a PARF rebate — a percentage of the ARF (Additional Registration Fee) paid when the car was first registered.

The percentage depends on the car's age and which schedule applies:

Age at Deregistration Pre-Feb 2026 Post-Feb 2026
Within 5 years 75% of ARF 30% of ARF
5-6 years 70% of ARF 25% of ARF
6-7 years 65% of ARF 20% of ARF
7-8 years 60% of ARF 15% of ARF
8-9 years 55% of ARF 10% of ARF
9-10 years 50% of ARF 5% of ARF
After 10 years Nothing Nothing

Which schedule you're on depends entirely on when the car was first registered. Before 13 February 2026 = old (higher) percentages. After = new (lower) ones. The difference is enormous. See our guide to the 2026 PARF changes for the full breakdown.

The PARF rebate goes into your LTA account as a credit, meant to offset the ARF on your next car. If you don't register another car within 12 months, you can apply to withdraw it as cash. Don't forget about this — it's real money sitting in an account that nobody will remind you about.

COE Rebate

Same rule as PARF: COE rebates only apply on deregistration, not when you sell to a dealer or private buyer. The dealer factors the remaining COE value into the price they offer you. They claim the rebate from LTA when the car is eventually deregistered.

If you're deregistering the car yourself, you get back the unused portion of your COE premium. The COE is valid for 10 years (120 months), and the rebate is prorated:

COE Rebate = COE Premium Paid x (Remaining Whole Months / 120)

If you paid $80,000 for your COE and have 60 months remaining: $80,000 x (60/120) = $40,000.

The rebate goes into your LTA account as a credit. Same 12-month rule for cash withdrawal if you don't buy another car.

Important: the rebate counts whole remaining months, not days. 60 months and 29 days remaining = 60 months of credit, not 61. Every month boundary matters.

Season Parking

If you have HDB season parking, cancel it through the HDB app, website, or HDB Hub. You'll get a prorated refund for unused months. At $110 per month, leaving this running adds up fast.

If you park at a private condo or commercial building, notify your management office to deactivate your access and stop billing.

CashCard and IU

Remove your CashCard or EZ-Link card from the IU (In-vehicle Unit) before handing over the car. The IU is part of the car — it stays. Your CashCard balance is yours. Use it elsewhere or return it to a TransitLink office for a refund.

Outstanding Fines

Clear all traffic fines, parking fines, and LTA summons before the transfer. These are tied to the registered owner, not the car. If you have unpaid fines, LTA may block the transfer entirely.

Check your fines on OneMotoring or the AXS app. Pay them before handover to avoid complications. If you sold to a dealer, they'll usually flag this, but it's better to sort it out in advance.

Loan Settlement

If you still have an outstanding car loan, it has to be fully settled before or at the point of sale.

Sold to a dealer? They handle this routinely. The dealer pays your bank directly, deducts the amount from your sale price, and pays you the difference. You sign a letter of authority to let them settle on your behalf.

Sold privately? You need to clear the loan yourself first. Call your bank, get the early settlement amount (which includes any early redemption penalty — typically 1 to 2% of remaining principal), and pay it off. The bank releases the vehicle's log card, which you need for the ownership transfer. Some buyers and sellers arrange a three-party meeting at the bank. It works, but it's simpler to just clear the loan before listing.

The Checklist

Print this. Screenshot it. Come back to this page when you need it.

  • Cancel motor insurance — call your insurer within 1 week (this is the big one)
  • Cancel HDB season parking — via HDB app, website, or HDB Hub
  • Remove CashCard from IU — the card is yours, the IU stays with the car
  • Clear outstanding fines — check OneMotoring or AXS before transfer
  • Confirm LTA transfer completed — log in to OneMotoring and verify
  • Road tax — only refunded if deregistering; if selling, it transfers with the car
  • Watch for insurance refund — arrives in 2 to 4 weeks
  • PARF/COE credits — only if deregistering; if selling, the dealer claims these

Frequently Asked Questions

Do I get a road tax refund when I sell my car? Only if the car is deregistered (scrapped or exported). If you sell to a dealer or private buyer, the remaining road tax transfers to the new owner — there's no cash refund to you. Factor this into your sale price negotiation. If deregistering, the refund arrives in 2 to 4 weeks to your LTA-linked bank account.

Do I get the PARF/COE rebate when I sell my car? Only if you deregister the car yourself (scrap or export). If you sell to a dealer or private buyer, the rebates belong to whoever eventually deregisters the vehicle — usually the dealer. They factor this into the price they offer you. If you do deregister and the credits sit in your LTA account, you can withdraw them as cash after 12 months if you don't register another car.

Do I need to return my licence plates? If you sold to a dealer or private buyer, the plates stay with the car. If you're scrapping, the scrapyard handles them. You don't need to remove them or bring them anywhere.

What if the buyer doesn't transfer the car? Until the LTA transfer goes through, the car is legally yours. You're liable for fines, tolls, and incidents. Follow up with the buyer immediately. If they go quiet, contact LTA. For private sales, always set a clear deadline — 3 working days is standard — and put it in the sales agreement.

Can I keep my car number plate? Yes. Apply through OneMotoring before the transfer or deregistration. If your dealer handles it during new car registration, the fee is $100 upfront. If you retain the number separately, you pay $1,300 upfront and get $1,200 back when the number goes on your new car — same net cost of $100. You have 12 months to use it. Extensions cost $1,000 plus $42.51 admin fee per 6-month period.

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