Deregister or Transfer a Damaged Car in South Africa: What Should You Do?

Overview: When a Damaged Car Can't Stay on the Road

If your car has been in an accident, suffered severe mechanical failure, or is so damaged it's no longer driveable, what are your options? South African law requires vehicle owners to take the correct legal steps - either deregistering the vehicle or officially transferring ownership if you sell it. The right route depends on the car's condition, your plans, and compliance needs. This guide breaks down when to deregister, when to transfer, and the practical implications, so you avoid fines, legal risks, and ongoing licence fees.

Deregister vs Transfer: What's the Difference?

When Should You Deregister a Vehicle?

• Your insurer has declared the car permanently written off ("uneconomical to repair").
• The car is not repairable and will never return to the road.
• You intend to sell it for scrap or spares only, not to a private buyer.

In these situations, you must complete the Notification of Change of Status (NCO) - Deregistration at your local licensing office. You cannot sell a deregistered vehicle for use on the road again.

When is Transfer of Ownership the Right Choice?

• The car is repairable, even if it's accident-damaged or non-running.
• You are selling the car to a dealer, salvage specialist, or another private person or business.
• The car is still registered on eNaTIS as "in use".

The transfer keeps the roadworthiness and registration status attached to the new owner (who may choose to repair, break for spares, or further deregister the vehicle themselves).

Steps for Deregistering or Transferring Your Damaged Car

How to Deregister a Vehicle in South Africa

1. Visit your local licencing office with your ID and vehicle papers.
2. Complete the NCO (Notification of Change of Ownership/Scrapping) form (usually form NCO or specific deregistration form).
3. Provide proof the vehicle is irreparable (e.g. insurer's letter or assessment).
4. Settle outstanding licence fees or penalties.
5. The car is removed from eNaTIS; no further licence or penalties apply.

How to Transfer Ownership of a Damaged Car

1. Both seller and buyer complete the NCO form and a Sale Agreement.
2. Hand over the roadworthy certificate if available (not mandatory for non-runners, but required if the buyer wants to relicense for the road).
3. The buyer registers the vehicle in their name and pays any outstanding fees.

Key Tips to Avoid Common Pitfalls

• Never leave your name on the registration after selling - you remain liable for fines and licence renewals.
• Get a written sale document if transferring, even to a scrapyard or salvage dealer.
• Keep copies of all forms and correspondence.
• If in doubt, use a reputable service like Sell Your Damaged Car - they simplify compliance and paperwork.

Summary Table: Common Scenarios

What Happens After?

Once your name has been removed via deregistration or successful transfer, you're free from legal liability, annual licence renewals, and fines. If you sell to a salvage specialist such as Sell Your Damaged Car, you typically receive direct assistance with paperwork, free national towing, and a simple handover process.

Sources

• South African Government Guide: Notice of Change of Ownership of a Vehicle
• Official Process: Register the Scrapping of a Motor Vehicle
• Sell Your Damaged Car - About Us
• Arrive Alive: Vehicle Deregistration on the eNaTIS System
• Automobile Association: Car Written Off? What To Do Next