Loading your content...

Selling a Scrap Car in South Africa: Deregistration Process & Paperwork

Overview

What this guide covers

This guide explains how deregistration works when selling a scrap or written-off car in South Africa, the documents typically required, how finance affects the sale, and practical steps to make the transfer and deregistration smooth and low risk.

When to sell a scrap car vs repair

Deciding whether to repair or sell a damaged vehicle depends on repair cost, your vehicle’s market value, safety and legal compliance. For many older vehicles or those with structural or flood damage, the cost of repairs can far exceed value retained after repair. Selling as scrap or written-off is often the faster, lower-risk option for private owners and small fleets.

Quick considerations

If repair estimates are more than 50% of the vehicle’s market value, selling is usually sensible.
Structural or flood-damaged vehicles often lose certification for roadworthiness and can be difficult to insure.
Vehicles under finance must be handled with the lender before transfer or deregistration; failing to do so can invalidate a sale.

Repair cost vs value retained

Scenario	Typical repair cost (estimate)	Value retained after repair (estimate)
Minor panel damage (bumper, lights)	R3,000 - R12,000	70% - 90% of pre-accident value
Major structural repairs	R20,000 - R80,000+	20% - 60% of pre-accident value
Flood or fire damage	Varies widely; often uneconomical	Often significantly reduced; may not be insurable

Figures above are illustrative South African estimates (R). Actual costs vary by make, model and location and should be confirmed with local repairers or valuers.

How the deregistration and selling process typically works

When selling a scrap car you (or your buyer) must ensure legal ownership transfer and deregistration where applicable. The following steps describe a common, low-risk workflow used by reputable buyers and services in South Africa.

Step-by-step process

Initial valuation: Provide photos, registration details and damage description so the buyer can give an indicative cash figure.
Offer acceptance: Agree the sale terms, including who handles deregistration and whether towing is included.
Paperwork and transfer: Sign the necessary transfer forms and provide ID; if the vehicle is scrap the buyer may deregister the vehicle on your behalf.
Collection and payment: The buyer collects the vehicle, completes deregistration or scrapping documentation, and releases payment according to the agreed terms.

For an overview of service steps used by specialised buyers, see our About / How it works page. If your car is not running, read details on selling a non-running vehicle at Sell Non-Running Car.

Damage types vs typical offer impact

Damage type	Typical impact on offer
Cosmetic (dents, paint chips)	Low to medium reduction
Mechanical (engine or gearbox failure)	Medium reduction depending on repairability
Structural / flood / fire	High reduction; may be classified as salvage

These categories help set expectations; every vehicle is assessed on make, model, age and current salvage market demand.

For more information on selling damaged cars and what buyers accept, see our Sell Damaged Cars page.

Legal & paperwork in South Africa

In South Africa the legal transfer of ownership follows documentation requirements and, where relevant, deregistration or scrapping certificates. Standard documents you should expect to prepare or receive include:

Vehicle registration documents (logbook / disc where available).
Proof of identity of seller(s) and buyer, and a signed sale agreement or transfer forms.
Clear declaration of any outstanding finance; the lender's consent or settlement statement is usually required before transfer.
If scrapped, a scrapping certificate or dealer declaration is typically issued to confirm the vehicle will be destroyed and deregistered.

Vehicles under finance

If the vehicle is still financed, inform the lender immediately. Most lenders require the outstanding balance to be settled (or for them to approve release) before transfer or deregistration. A buyer or specialist service will often liaise with the finance company to arrange settlement and paperwork, but you should verify any settlement amounts and obtain written confirmation of clearance.

Tips to maximise your offer and reduce delays

Organise clear photos (interior, engine bay, VIN/chassis) and an honest description of damage. Transparency speeds up valuations.
Locate service records and outstanding documentation; even partial history can increase confidence and offers.
If under finance, request a settlement figure from the lender in writing so buyers know the required steps.
If you prefer minimal handling, work with a buyer that offers towing and paperwork support rather than arranging these yourself.

What happens after collection

After the buyer collects the vehicle, they typically complete the required scrapping or deregistration formalities and submit transfer documents to the relevant authority or agent. Payment is released according to the sale terms: many buyers issue payment once transfer paperwork is submitted or immediately after collection when paperwork is completed.

Practical example (illustrative)

Example: A private owner in Cape Town sells a structurally written-off hatchback. They provide photos and ID, accept a competitive cash offer, and the buyer arranges collection and a scrapping declaration. The buyer settles a small outstanding finance balance with the lender and provides the seller with a signed receipt and confirmation of deregistration submission. Payment is released once both parties have signed the necessary documents.

If you want to understand how a specialist buyer handles logistics and paperwork step-by-step, our homepage explains the standard process and inclusions.

Common pitfalls and how to avoid them

Accepting payment before signed transfer: insist on signed paperwork to avoid future liability.
Not confirming finance settlement: get written confirmation from the lender that the debt is cleared.
Using informal buyers without clear documentation: prefer services that provide written sale agreements and deregistration evidence.

Sources

Notes: All currency examples are shown in South African Rand (R) and are indicative ranges. Always verify figures with local repairers, lenders and the relevant authorities for the most accurate, case-specific information.

Selling a Scrap Car in SA: Deregistration Process Explained

Deregistration Essentials

Practical Process

Protect Yourself

Overview

What this guide covers

When to sell a scrap car vs repair

Quick considerations

Repair cost vs value retained

How the deregistration and selling process typically works

Step-by-step process

Damage types vs typical offer impact

Legal & paperwork in South Africa

Vehicles under finance

Tips to maximise your offer and reduce delays

What happens after collection

Practical example (illustrative)

Common pitfalls and how to avoid them

Sources

Service was easy and...

Why Choose Sell Your Damanged Car?

Free Towing

Hassle Free

Nationwide

How We Calculate Your Damaged Car’s Value

Why sell your damaged car to us?

A Division of Auction Nation, the leading expert in selling damaged cars

Best price for your damaged car

Frequently Asked Questions

What documents do I need to sell my damaged car?

What documents do I need to sell my damaged car?

My car still has a finance bond or outstanding loan - can you buy it?

My car still has a finance bond or outstanding loan - can you buy it?

How do you handle transfer of ownership and deregistration for non-running or written-off vehicles?

How do you handle transfer of ownership and deregistration for non-running or written-off vehicles?

Are there tax or VAT obligations I should be aware of when selling my damaged car?

Are there tax or VAT obligations I should be aware of when selling my damaged car?

Fast and Friendly

I have been in contact with Sheneeze Pearce and she provided so much help and made sure I submit all required documents she is so patient and very professional

I was helped by gentleman called Cleavon Schubart, from Sell You Damaged Car

Excellent service from Johan Bouwer

I made an enquiry on the website around midnight, and got a WhatsApp within 5 minutes

It was efficient, fa...

Was the best assista...

Good day, they ( shell ur damaged car) are a very professional company, excellent human communication skills

Hi....Keanu Naidoo.....

The person who helped me was Johan Bouwer

They were quick, open, and honest

Good evening My exp...

Very happy just feel...

Selling a non running vehicle

I would like to thank Keanu for his quick and professional service

Great fast responses...

I sold my car on Sell Your Damaged Car and I must honestly say Lee-Zhundre Nortje was very professional and helpful

I recently sold my car through Sell Your Damaged Car, and the whole process was quick and hassle-free

Great communication ...

Was a breeze and fas...

Guaranteed

Excellence

Thank you so much for your professionalism and patience throughout the whole process

Good work

Clear, seemless, and honest

The service was exce...

Title: Excellent Service from Keanu & Bassie – Highly Recommended! I had a great experience with Buy My Damaged Cars

Excellent service Qu...

I realized from the start that your company is legitimate

Johan Bouwer was extremely professional throughout the entire process

Appraisal for Tshidi Mashangoane consultant for my Mazda 6 deal

Excellent service from Cleavon Schubart at Sell Your Damaged Cars

The consultant was m...

I contacted then to sell my car & got contacted by Kobus Rebb, who provided me with fast & efficient service from start to end

They are definitely to be trusted

Highly professional ...

From Start To finish...

I was assisted by a ...

Exceptional service from Tshidi

I have had the best service from Kobus from start to finish

Very good Johan help...

It was the best service

Good service I've received from sell your damaged car from agent Jacobus Rebb