Steps to Sell Scrap Cars in South Africa - A Practical Step-by-Step Guide

Overview: Selling scrap cars in South Africa

If your vehicle is beyond economical repair, written off, flood- or fire-damaged, or simply a non-runner, selling it as scrap can be the fastest way to recover value. This guide walks through the practical steps to sell scrap cars in South Africa, explains the paperwork and logistics, and highlights common pitfalls. Where relevant, the process references South Africa regulations and real-world examples to help you make an informed choice.

Who this guide is for

• Private owners in Johannesburg, Cape Town, Durban and surrounding regions with a damaged or non-running vehicle
• Small business fleets looking to remove written-off or salvage units
• Anyone who wants a quick, low-hassle way to sell a car that is not roadworthy

When to sell scrap vs repair

Deciding whether to sell scrap cars in South Africa or invest in repairs depends on the repair estimate, remaining market value, safety, and how long you plan to keep the vehicle. Factors like age, mileage, structural damage and availability of parts matter. Use conservative estimates for repair cost and compare against the likely resale value after repair.

Step 1: Prepare basic information and photos

Collect the vehicle registration papers (if available), proof of ID, a short description of the damage, and clear photos from multiple angles. Include engine bay, interior, odometer reading and close-ups of damaged areas. Buyers of salvage cars in South Africa will use these to form the initial valuation.

Step 2: Check finance and ownership

Confirm whether the vehicle is under finance. If so, disclose this to potential buyers - the outstanding finance must be settled or transferred during the sale. For clarity on deregistration and transfer, many sellers use services that handle paperwork on their behalf.

Step 3: Get multiple valuations

Obtain several valuations: from specialist scrap buyers, breakers, and salvage dealers. Valuations vary based on metal value, reusable parts and local demand. Valuations vary based on metal value, reusable parts and local demand. When you compare offers, ensure each quote is clear about inclusions such as collection, paperwork assistance and whether any fees apply.

Damage types vs typical offer impact

When evaluating offers, ask whether collection (towing) is included. Free towing across South Africa removes a common hidden cost for sellers outside major centres. To help compare bids you can use a guide on comparing damaged car offers.

Step 4: Agree terms and paperwork

Once you select a buyer, agree the exact terms in writing: agreed price, collection date, who handles deregistration/transfer, and how/when payment will be made. For many sellers, having the buyer handle paperwork reduces risk and speeds up the sale.

Step 5: Collection and vehicle handover

On collection day, inspect the towing service vehicle ID and the paperwork. Provide the buyer with the registration document and a signed statement of sale where required. If the vehicle is not in your name, ensure the registered owner authorises the sale in writing or joins the handover.

Step 6: Payment and proof of transfer

Confirm the agreed payment method before handover. Many scrap buyers provide electronic payment on collection or immediate transfer once paperwork is complete. Keep receipts and a copy of the signed sale agreement for your records. For vehicles under finance, ensure the financier is paid and the settlement is recorded.

Legal & paperwork considerations in South Africa

Key documents commonly required: the vehicle registration certificate, a signed transfer form (if applicable), proof of ID and, for financed vehicles, a settlement letter from the financier. Deregistration or transfer to a dismantler should be recorded with the registering authority. If you're unsure, choose a buyer that explicitly handles deregistration as part of the service.

Practical tips to get the best result

• Be transparent about all damage - undisclosed issues can lead to renegotiation on collection.
• Get written confirmation that towing and paperwork are included.
• Ask for ID and company details from the buyer and verify a phone number and physical address.
• Consider selling to a nationwide buyer if you're outside major metros to avoid low local offers.
• Retain copies of all signed documents and proof of payment for tax and record-keeping.

What happens after the car is collected

After collection, the buyer will typically process deregistration, dismantle the vehicle for parts, or send it for scrap metal recycling. Expect a short administrative period while transfer or deregistration is finalised. Keep a record of the deregistration confirmation or the buyer's receipt to protect yourself from future liabilities.

Local example scenarios

Scenario 1: Johannesburg private owner with a non-runner - obtains two valuations, chooses a buyer who offers free towing and paperwork handling, and receives payment on collection. Scenario 2: Small fleet manager in Durban - consolidates multiple written-off units to a single dismantler, reducing administrative overheads and transport costs.

Further reading and related services

For help with non-running vehicles and damaged cars, see the Sell Your Damaged Car pages for specialised services: Sell Non-Running Car and Sell Damaged Cars. To learn how to avoid scams when selling vehicles, consult How to Avoid Being Scammed or equivalent consumer-protection resources.

Sources

• Road Traffic Infringement and registration guidance - South African authorities
• South African Revenue Service - guidance on disposing of assets and record-keeping
• Consumer Protection information - selling goods and avoiding scams in South Africa