Scrap or Sell an Accident Car: Paperwork Required in South Africa

Overview: scrap or sell accident car paperwork required

Deciding whether to scrap or sell an accident car starts with understanding the paperwork that proves ownership, clarifies the vehicle’s status and lets the transfer or deregistration go ahead. This guide explains the common documents, typical timelines, and South Africa-specific steps so you can make an informed choice. Throughout we use practical South African scenarios and note where industry players (buyers, scrap yards, insurers and finance houses) usually require additional checks.

When to choose scrapping over selling - quick comparison

If repair costs, storage fees or safety risks are high, scrapping can be faster. If the vehicle still has resale or salvage value, selling (even to a trade buyer) often returns a higher cash outcome. The paperwork differs: scrapping usually requires proof of destruction and deregistration; selling requires a transfer of ownership record and may need finance clearance.

Repair cost vs value retained (illustrative estimates)

Note: figures are illustrative ranges for South Africa and will vary by make, model and age. Repair cost vs retained value helps decide whether the paperwork and time to sell privately make sense, or whether scrapping is simpler.

Key documents most buyers or scrappers will ask for

• Vehicle registration document (proof of registration / logbook or registration card).
• South African ID or company registration documents for fleets.
• Clear photos of the vehicle and damage (date-stamped where possible).
• Signed letter of authority if someone else is selling on your behalf.
• Letter from the finance provider showing settlement amount or proof of account closure if the vehicle is financed.

Below we cover the common legal and administrative steps in more detail so you know what to prepare when you decide to scrap or sell a damaged vehicle in cities like Johannesburg, Cape Town or Durban, or from more remote areas.

If your car is non-running, see practical selling routes and required paperwork for non-starters on the Sell Non-Running Car page for example document lists and photo tips.

How the process typically works (sell or scrap)

Step 1: Gather documents listed above. Step 2: Get an appraisal or quote from a buyer or scrap yard - many accept online photos first. Step 3: Agree terms and arrange collection. Step 4: Complete transfer or obtain the certificate of destruction and confirm deregistration. Specialist services often manage steps 2-4 for you.

Legal & paperwork specifics in South Africa

• Proof of ownership: The registered owner on the provincial licensing system should sign the change-of-ownership or disposal form. If the logbook is lost you will typically need a police affidavit confirming the loss and a sworn affidavit in many provinces.
• Finance encumbered vehicles: If there is a bond or outstanding finance, the funder must provide a settlement figure and sign off to allow transfer or issue written consent for sale to a buyer who pays them directly.
• Deregistration/destruction: A licensed scrap facility or buyer will issue a certificate of destruction or confirmation of disposal and notify the relevant licensing authority so the vehicle is removed from the register.
• Insurance & accident reports: If the vehicle has an insurance claim, there may be assessor reports and insurer paperwork needed to verify the vehicle’s status.

Damage types vs typical offer impact (summary table)

Tips to maximise your offer and speed up paperwork

• Prepare clear, date-stamped photos showing VIN/chassis number, odometer and all damage angles.
• Collect original documents where possible: registration paper, ID and any service history - these reduce verification time.
• If under finance, request a settlement figure from the finance house before accepting an offer; transfers are delayed without it.
• Use a buyer who can handle deregistration and issue the destruction certificate if scrapping - this removes the need for you to visit licensing offices.

For more detail on documents and step-by-step support a specialist buyer provides, review our service overview at Sell Damaged Cars and the selling process on our homepage.

What happens after collection

After the buyer collects the vehicle, they usually complete or lodge transfer/deregistration paperwork with the provincial licensing authority. If the car is scrapped, a facility will provide a certificate of destruction and notify the registry. If the vehicle had a lien, the buyer or seller arranges settlement with the finance provider so the clearance is recorded and the transfer can proceed.

Example South Africa scenario: a Gauteng-based private owner sells a written-off sedan that is under a small finance balance. The buyer requests the registration document, the owner obtains a bank settlement figure, both parties sign the necessary transfer and disposal forms, the buyer arranges free towing and the finance house is paid from the sale proceeds. The buyer issues a confirmation of deregistration when complete. Times vary but expect 3-21 business days depending on finance clearance and licensing workload.

Sources

• South African Department of Transport - Official site
• South African Police Service - Reporting and affidavits
• National Credit Regulator - Guidance on credit agreements and settlements
• Automobile Association of South Africa - Advice on selling and scrapping vehicles