When should you scrap a car instead of selling it?

By Stuart Johnston 

The decision to scrap a car normally comes about because it is too costly to repair. This can occur after an accident, or when the car has such severe mechanical damage that repairing it would more costly, in terms of parts and labour.

In the case of accident-damaged vehicles.

In the case of an accident-damaged car, if the car is still fairly new and insured, you would be required to get three repair quotes from reputable repair shops. At this point your insurer would then make the decision on whether the car is repairable, or declared a write-off.

If the car is a write-off, the wreck will be sold to a motor scrap yard at a price agreed to between the insurer and a scrap yard. This is usually between 13 to 20 per cent of the car’s market value. The insurer will then receive this payment to recoup some of the costs of the insurance pay-out that you will receive.

Check with our local traffic authority to ensure the car is de-registered

At this stage, reputable scrap yards will fill out a de-registration form with the local licensing authorities, to ensure a car is officially scrapped. However, those in the motor scrapyard business admit it is advisable that the owner of the vehicle visits his local traffic authority, within three months of the car being sold for scrap, to ensure that this is done.

In the case of the car still being subject to outstanding finance payments, the financer, or title-holder of the vehicle will also be required to fill out the relevant forms to ensure that it is de-registered as scrap. Again,  you, as the owner, should check that  these requirements are met.

In the case of mechanically-challenged vehicles

In the case of older cars where an engine, gearbox, suspension  or major electric fault occurs, it may not be financially viable to repair the car. The repair may cost much more than the vehicle is worth.

Check out what the market values are for your car, by visiting AutoTrader  on-line and logging your car’s make, model and year of manufacturer, to ensure that you have the correct information.

Before deciding to scrap your car and sell it to a scrap yard, it is a good idea to get a number of repair quotes.

Second-hand engines and gearboxes may well be an option

In the past few years,  a number of companies have been established selling imported second-hand engines for cars that are popular in South Africa. Many of these engines come from Japan, where that country’s draconian roadworthy laws often see cars being scrapped that have perfectly good engines and other mechanical items.

 Go on-line and do a search for these companies.  If you find a suitable second-hand replacement engine, have the work done by a reputable non-franchised workshop. The result could be a new lease of life for your faithful, much-loved vehicle you were about to scrap.

Your old car may have some collectable value

Also bear in mind that if you are selling a mechanically-tired vehicle that is older than 25 to 30 years, it may well have value to a collector of old cars. You may realise a price much better than you would from a scrap dealer, if your car is rare, or, perhaps, an otherwise pristine survivor of an earlier age. Find out if there are any cubs that specialise in your old car, who may want to buy it for salvageable spares.

But scrapping can still be a good option

Scrapping is a good option if you have checked out all the possibilities for saving your old car. Unless you are mechanically adept it is not really viable for you to begin stripping your car and selling it off piece by piece. The good part about scrapping your car is that a scrap dealer will come to your premises, pick up the car and pay you an agreed price. That’s one more problem off your hands, and you can put that money to good use when you purchase your next vehicle.