How to Scrap a Car ? Legal Requirements and Resources

Posted by We Buy Motors on November 19th, 2016

When your old car starts to cost you more to maintain than it is worth, it is better to dispose of it by selling or scrapping the vehicle. It may, however, be an uphill task to find a buyer for a car in a dilapidated condition. Therefore, scrapping is a good alternative. The process of scrapping a vehicle itself is simple but certain rules and regulations associated with the process can make it arduous. It is essential to understand the legal requirements before you consider scrapping your vehicle.

Most components of a car can be recycled or reused in some way or another. EU legislation requires that 95% of a scrapped car must be recycled. It is important to note that all recycling facilities do not have the required license to scrap cars. A registered authorized Treatment Facility (ATF) is legally authorized to scrap vehicles as it dismantles the car in an environmentally friendly way. Such facilities understand the complexities associated with the scrapping process and are well-equipped to deal with hazardous parts like batteries. 

You should only give your car for scrapping at a place that has a valid ATF license. Only an ATF can issue an authentic Certificate of Destruction (CoD). Recycling the car anywhere else is considered a criminal offence. Many websites that look legitimate claim to offer certificates of destruction. However, in most of the cases, they will misrepresent the information of the real certificate as they read as ‘Destruction Certificate’ or ‘Certificates of Collection.’ Such websites often offer an unrealistic amount of cash in exchange for a car. It is best to avoid these websites and facilities as there is also a possibility that your vehicle can be used to commit a crime.

It is important to notify the Driver and Vehicle Licensing Agency (DVLA) in advance before scrapping a vehicle. This will help avoid unnecessary liability for vehicle tax as the DVLA will know from its records that you are no longer responsible for the vehicle. The V5C document has a section that has to be completed and exchanged for a CoD, which then has to be sent to DVLA. The DVLA will automatically refund the unused road tax. You may also receive some money from your insurer, and you should inform them during the process.

According to the Scrap Metal Dealers Act, 2013, it is illegal for an ATF to accept cash to scrap a vehicle. In England and Wales, it is against the law to pay, and ATF in cash for scrapping and both the payer and the recipient are held guilty. Proof of address is also required when taking the car to scrap merchants.

Adhering to the basic legal requirements makes the process of scrapping a car smooth and easy. 

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