What documents do I need to sell my damaged car?

You will normally need the vehicle registration certificate (logbook), your South African ID or passport, and proof of ownership. If the logbook is missing you can provide a sworn affidavit and Sell Your Damaged Car will guide you through replacement documentation.

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

Sell Your Damaged Car can purchase vehicles with outstanding finance, but the bond holder must be settled before ownership can transfer. We can obtain settlement figures and coordinate payment to the lender as part of the sale process.

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

We prepare and submit the required transfer forms, collect the necessary signatures, and lodge paperwork with the relevant licensing authority (eNaTIS or municipal licensing office) to complete transfer and, where applicable, deregistration. You will receive written confirmation of the transfer and payment once the process is complete.

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

Private sellers are generally not required to charge VAT on a single private vehicle sale, but businesses or VAT-registered sellers must account for VAT. For income tax or capital gains considerations, consult a tax advisor for advice specific to your circumstances.

What happens if my car is part of an insurance claim or a police case?

If the vehicle is subject to an insurance claim or police investigation we will require written clearance from the insurer or police before transfer can proceed. Disclose any open claims or cases up-front so we can advise on the documents needed to lawfully complete the sale.

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Insurance Write-Off vs Repair - SA Owner's Guide | Sell Your Damaged Car

Write-Off vs Repair: Insurance Decisions Explained for South African Car Owners

South African guide to insurance write-off versus repair: learn how insurers decide, steps after a write-off, and what options you have for your damaged car.

Published:January 23, 2026

4 min read

Understanding Write-Off vs Repair: The Basics

If your car has suffered accident damage, one of the first decisions-by both you and your insurer-is whether to repair the vehicle or declare it a write-off. South African insurance companies use strict criteria to assess the economic feasibility of a repair, balancing cost, roadworthiness, and regulations. Knowing how these decisions are made can inform your next steps-whether you're hoping to keep your car or consider selling your damaged vehicle for cash.

What Is an Insurance Write-Off?

A car is considered a write-off (or 'total loss') when the insurer determines that repairing the damage isn't financially viable, or the car can't be safely returned to the road. In South Africa, this typically happens if repair costs approach or exceed a threshold percentage of the vehicle's pre-accident market value-most commonly between 60% and 80%, though this varies between insurers and policy types. When written off, your insurer will settle your claim (usually for the market value) and the car receives a new salvage title in eNaTIS, affecting its resale and roadworthiness status.

How Repair vs Write-Off Is Calculated

Insurers use a comparison of the estimated repair cost against the car's insured or market value. Additional factors in South Africa include the cost of parts (which can be high for imports), availability of approved panel beaters, and whether repairs would result in a legally compliant and roadworthy vehicle. Here's a simplified guide:

Assessment Factor	Typical Impact in SA
Repair cost < market value x write-off threshold	Usually repaired if structurally sound
Repair cost >= market value x threshold	Declared total loss (write-off)
Non-repairable structural/safety failure	Write-off irrespective of cost

Example: A 2015 sedan with a market value of R120,000 is damaged. If your insurance policy's write-off threshold is 70%, any repair quote above R84,000 may be considered uneconomical, leading to a write-off decision.

Types of Damage and Their Effect on Write-Offs

Type of Damage	Likelihood of Write-Off	Notes
Minor cosmetic (dents, scratches)	Low	Rarely leads to write-off
Major structural/frame damage	High	Repair often uneconomical/unsafe
Fire or flood damage	High	Hidden issues often tip decision
Mechanical failure only	Medium	Depends on vehicle age & value

SA Paperwork & Next Steps After an Insurance Write-Off

Once your vehicle is written off, you'll need to navigate the legal and administrative steps required by South African regulations. Your insurer will submit the damaged vehicle details to eNaTIS, after which the vehicle's registration is updated with a salvage code (Code 2, 3, or 4). This determines whether the vehicle can be rebuilt, only used for parts, or is permanently off-road.

If you retain the salvage, you must handle deregistration (SCRAPPING) at your local licensing office.
If the insurer takes the vehicle, they handle all paperwork for deregistration and resale at auction or as scrap.
Written-off cars with Code 3 or higher generally cannot be legally returned to the road.

Should You Ever Repair a Written-Off Vehicle?

It's technically possible, but comes with strict roadworthiness and inspection requirements. Code 2 write-offs can sometimes be reconstructed, but Code 3 or 4 vehicles are typically limited to parts or scrap only. Repairs following major structural or flood damage may yield a car that's less valuable, harder to insure, or not legally safe on South African roads. Always check SAQA requirements and get an accredited roadworthy inspection.

Tip: If offered the salvage on your written-off car, make sure you fully understand its resale restrictions, future value, and what paperwork is needed for any resale or scrapping.

Tips When Navigating a Write-Off Decision

Request a breakdown of the repair cost estimate; get a second opinion if unsure.
Understand your insurer's threshold and how market value is calculated in South Africa (using TransUnion, book values).
Keep all paperwork (assessments, quotes, settlement offers) for your records.
If considering sale, specialist buyers like Sell Your Damaged Car can offer fast payment for written-off, non-running, and salvage vehicles, handling nationwide towing and paperwork.

What Happens if You're Still Financing the Car?

Insurance payouts on financed vehicles go directly to the titleholder-usually your bank. If the payout is less than the outstanding finance, you may be liable for the shortfall. Consider gap insurance for future protection.

Salvage Market Insights in South Africa

Many written-off cars in South Africa are sold at auction, stripped for parts, or purchased by salvage specialists. Vehicles with only cosmetic damage may attract higher resale value, while those with structural or fire damage are mainly used for parts. Always ensure any transfer complies with deregistration and local legislation to avoid future liabilities.

Write-Off vs Repair: Insurance Decisions Explained for South African Car Owners

Understanding Write-Off vs Repair: The Basics

What Is an Insurance Write-Off?

How Repair vs Write-Off Is Calculated

Types of Damage and Their Effect on Write-Offs

SA Paperwork & Next Steps After an Insurance Write-Off

Should You Ever Repair a Written-Off Vehicle?

Tips When Navigating a Write-Off Decision

What Happens if You're Still Financing the Car?

Salvage Market Insights in South Africa

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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?

What happens if my car is part of an insurance claim or a police case?

What happens if my car is part of an insurance claim or a police case?

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