When a car has surpassed its days of good use, it’s your responsibility to deregister it and have it scrapped. Often, cars are just too old and are no longer worth repairing, or it’s been written off in a nasty accident. In such cases, selling your car for scrap to a salvage yard or someone that can make use of the used parts.
You thus likewise have the opportunity to make some money. So if you are looking for advice on the process of scrapping your car and getting best price for your car, read on!
Key Takeaways
| Key Points | Concise Summary |
|---|---|
| When to Scrap | Scrap your car if it’s too old, damaged beyond repair, or hard to sell. Scrapping can offer better returns than selling. |
| Scrap Value Factors | Value depends on car’s make, model, condition, and market demand. Get an appraisal at a scrap yard for exact value. |
| Legal Requirements | In South Africa, deregister cars that are unusable, stolen, destroyed, or not needed. Follow local procedures for deregistration. |
| Deregistration Steps | Visit local vehicle registering body with ID, ownership proof, and registration document. Fill out ADV form and get a certificate. |
| Dealing with Scrapped Vehicles | Notify the owner, complete required forms, and submit necessary documents including a legal affidavit and scrapping certificate. |
| Market Value Estimation | Expect 12%-20% of the car’s market value. Use resources like TransUnion and AutoTrader for estimates. |
| Code 3 Vehicles | Vehicles rebuilt from scrapped parts are classified as Code 3. They require specific clearances and have different insurance and value considerations. |
| Legal Compliance | Follow National Road Traffic Regulations and South African National Road Traffic Act. |
| Selling Scrap Cars Online | Use services like Engine Finder for easy online selling and quotes from various scrap yards. |
Unless of course your car is appealing, selling a ‘right off’ vehicle could be challenging and you will probably not sell it for high price. Nevertheless, scrapping a vehicle might get you a higher price. The price of a scrapped vehicle depends upon the current market price for the car’s make, model, weight and size and specific metals.
Should you be looking for an precise value for scrapping the car, it is advisable to pay a visit to a local scrap yard for a quick appraisal. Should your car be a everyday economy car, scrapping a car in South Africa will be the smart thing to do!
Legal Guidelines For Scrapping Your Vehicle
To sell a car for scrap, (since it is completely lawful to scrap a car in South Africa), it’s your duty to adhere to the legal procedures of going about scrapping your automobile. South African legislation states you need to adhere to a specific procedure should your car become completely unfit to be used:
You should consider the deregistration process for your vehicle in cases where it is:
- Unusable for public roadways
- Reported as stolen
- Destroyed
- Not required to be registered
Remember: Vehicles without a license for over four years are subject to automatic deregistration.
How to Deregister Your Vehicle
- Initiate the Process: Approach the local vehicle registering body to start the deregistration.
- Documentation Submission:
- Government-issued identification
- Proof of vehicle ownership
- Original vehicle registration document
- Filling Out the ADV Form: Accurately complete the Vehicle Deregistration Application (ADV).
- Acquiring the Deregistration Certificate: The issuing body will provide a certificate confirming the vehicle’s deregistration after processing your application.
Guidelines for Dealing with a Scrapped Vehicle
Protocol for Unfit Vehicles
- Notify the Vehicle Owner: Ensure that the vehicle owner is aware of the vehicle’s status.
- Fulfill Form Requirements: Complete the CNP or MVR1A form at your local registering authority within a 90-day period.
- Hand Over Registration Papers: Present the vehicle’s registration document to the respective authority.
Responsibilities of the Vehicle’s Titleholder
- Unfitness Declaration: Declare the vehicle as unfit by submitting the ADV form within a three-month window.
- Scrapping Notification: Communicate the scrapping of the vehicle to the authority using the ADV1 form.
- Necessary Document Submissions:
- A legal affidavit explaining the reasons for scrapping
- A certificate of scrapping which includes details like the scrapping date, location, and the contact information of the scrapping assistant
Post-Submission Confirmation Steps
- Receipt Verification: Ensure the issuing of an appropriate notification receipt.
- Registration Details Confirmation: Confirm the update of the vehicle’s details with the authority.
- Receipt Acknowledgment: Make sure the authority acknowledges the notification receipt.
- Securing the Deregistration Document: The vehicle titleholder should receive an official deregistration document.
Additional Points to Note
- Licensing Exemption: Post approval of the notification receipt, licensing the vehicle might not be necessary.
- Record Retention: Keep updated documents for up to five years post-modification.
- Complete Destruction Notification: In the absence of this, utilize the CNV form and adhere to specific sub-regulations.
Steps for Permanently Destroyed Vehicles
Should the notice not include mention of the vehicle’s permanent destruction, within three months post-scrapping, the vehicle’s titleholder must:
- Notify the registering authority with the ADV1 form.
- Follow all related sub-regulations diligently.
How Much Can You Get for Scrapping Your Car?
The amount you can receive for scrapping your car largely depends on its condition. However, a general guideline is:
- Expected Range: You can expect to receive between 12% and 20% of the car’s current market value.
Determining Your Car’s Market Value
Sources for Market Value Estimation
- TransUnion’s Auto Dealer’s Guide:
- Description: Monthly guide with a compilation of thousands of sales prices from the used vehicle industry.
- Access: Available to genuine dealers and related industry businesses for a monthly fee.
- Method: Prices are collected from various sources and compiled into a comprehensive guide.
- AutoTrader:
- Usage: Widely used by used car dealerships to determine vehicle values.
- Process: Visit their website and enter the make, model, and year of your car to search for its retail price.
- Result: Provides a range of prices based on the car’s condition and mileage.
Practical Steps to Determine Value
- Check TransUnion’s Guide: If you have access, this can be a primary source for the market value.
- Use AutoTrader: A more accessible option, providing a realistic range of prices for your car.
Estimation Table
| Car Condition | Approximate Scrap Value as % of Market Price |
|---|---|
| Excellent | 20% |
| Good | 18% |
| Fair | 15% |
| Poor | 12% |
Note: The above percentages are based on the car’s condition relative to its market value determined by sources like TransUnion and AutoTrader.
Case Study: 2009 VW Golf GTi
Market Price Estimation
- Current Market Price: R130,000 to R150,000 (at the time of writing).
- Scrap Value Range: R15,000 to R30,000, representing 12% to 20% of the retail price.
Factors Influencing Scrap Value
- The scrap value largely depends on the salvageable parts of the car.
- Key components for salvage include the gearbox, engine, and differential.
- If these parts are irreparable, expect the lower end of the scrap value range.
The Process of Scrapping and De-registration
Self-Scrapping Advantages
- It is often more beneficial to de-register and scrap your vehicle personally.
- Scrap yards usually handle the scrapping process, but self-scrapping can be more advantageous.
Concerning Code 3 Vehicles
- A scrapped vehicle with its original VIN and framework, when re-assembled with parts from another scrapped vehicle, is classified as a Code 3 vehicle.
- Code 3 vehicles are valued differently and have specific insurance considerations.
Understanding Vehicle Registration Codes in South Africa
- Code 1: New vehicles.
- Code 2: Used vehicles.
- Code 3: Rebuilt vehicles using parts from damaged and scrapped vehicles.
- Code 4: Scrapped vehicles.
Code 3 Vehicle Registration
- Requires clearances on parts and chassis, and a roadworthy evaluation for re-registration.
Note for Vehicle Owners
- The responsibility of re-registering a Code 3 vehicle does not fall on the owner who is scrapping the original vehicle.
Legal Aspects and Recommendations
- Scrapping a car in South Africa is both a right and legal.
- Follow the provided guide for a secure and compliant vehicle scrapping process.
- This information aligns with guidelines from gov.za and adheres to the National Road Traffic Regulations and the South African National Road Traffic Act.
Quick and Easy Scrap Car Selling with Engine Finder
- Engine Finder offers a streamlined process to sell your car for scrap online.
- Fill out a form with your vehicle details for non-obligatory quotes from our network of scrap yards in South Africa.
- We facilitate the quick sale of your damaged car for parts.
