How much should you get when you sell a vehicle for scrap?
When a vehicle is no longer fit for use, the components can be sold off or recycled. The steel used in the construction of the vehicle also has a value, but how much can you expect to receive when selling a vehicle for scrap?
The going rate for selling a vehicle to a scrap yard is between 13 and 20 percent of the current retail price. This used retail price is calculated by TransUnion and published in its monthly Dealer’s Guide. This information has been gathered by TransUnion via 40,000 sources of sales prices current in the used car trade and compiled in one handy booklet (or App) each month. It is available to bona fide dealers and other industry-related entities for a monthly fee. (Find out When should you scrap a car instead of selling it?)
Related: Get an Instant Offer on your old car here.
AutoTrader is also a good source for determining the value of your vehicle, and many used car dealers use AutoTrader as their primary source of used car values. Simply visit AutoTrader and hit Value My Car. Provide the model and year of your car, and do a search to see what the retail value of your car is. You will get a realistic range of prices, depending on mileage and condition. Alternatively, you could sell your car on AutoTrader in just a few easy steps.
A typical example of a scrap price for your vehicle
For instance, if you are selling a scrapped 2008 VW Golf GTi, its current retail price will be in the region of between R150 000 and R170 000. The calculated scrap value, depending on salvageable parts, will be between R20 000 and R34 000, using the yardstick of 13- to 20 per cent of retail value.
Related: What is car scrappage?
13 to 20 per cent - a scrap industry standard
Enriche Ribeiro, General Manager of Metal Used Spares and Rebuilds, says that the figure of between 13- and 20 per cent of retail is pretty much an industry standard in the scrapyard business.
“But it all depends, of course, on how much of the scrapped vehicle is salvageable. The primary parts we need to salvage are the engine, gearbox, and differential. If these are damaged, then the price will drop.”
Is it a good idea to de-register your scrapped vehicle yourself?
“We tend to do the scrapping of the vehicle ourselves by lodging a de-registration form with the traffic authorities, which means it has been scrapped. If the scrapped vehicle, with its VIN (Vehicle Identification Number) in place on the original chassis, is then bought after this and built up with used parts from another scrapped vehicle or vehicles, then it will be listed as a Code 3 vehicle and does not warrant typical retail pricing. Insurance for these vehicles is also a problem.”
Enriche Ribeiro says that while his organisation undertakes to de-register (or scrap) a vehicle when they take possession of it, he recommends that owners of scrap cars take it upon themselves to de-register a vehicle. Information for the relevant forms and procedures to do this are available from your local traffic authority.
Vehicle registration codes
The vehicle code system is Code 1 for new vehicles, Code 2 for used vehicles, and Code 3 for vehicles rebuilt from parts that have been damaged in an accident and scrapped. A Code 4 vehicle is a scrapped vehicle.
Re-built Code 3 vehicles then have to go through a process involving police clearances on the chassis and parts and roadworthy tests to enable them to be re-registered for road use. But this is not the concern of the owner who is scrapping a car.
