Where and How to Scrap a Car in Ontario
Where and How to Scrap a Car in Ontario
Your old car served you loyally for a long time but now has become a black hole, repeatably asking for expensive repairs which are far beyond car value itself. What do you do when you end up with a scrap car in your hands? Well, you still have some options:
Determine value of Your Car
If something is worth nothing to you doesn’t mean it’s not worth something to someone else. There are no books to determine value on old or end of life cars. It has be done by rule of thumb. Generally, if a car is over 10-15 years old and an expensive component has failed (engine or transmission), repairs will most likely surpass car value and are not worth the expense.
Also, old cars which have extensive rust damage on body or frame will be very expensive to repair in order to pass safety certification requirements and can be safely considered scrap cars. However, with a little bit of work, you can still get something out of your scrap car.
Value of a scrap car is determined based on market value of Scrap Steel, which at the moment is about $300 per tome. As market prices of scrap steel (or steel in general) go up and down so does value of scrap vehicles.
Where and How to Sell Your Scrap Car in Ontario
1) Sell Your Car Privately
You can try to sell your car privately, assuming your car is still drivable and can be used as a winter beater. There are make and models (especially Japanese sedans or SUV) which retain value even in bad mechanical or body condition. You will get more selling your car privately than scraping it, at least double the amount.
As a comparison, scrap prices vary between $200 and $1,000 depending on vehicle size and type while a private sale can easily bring $2,000 or more if your car is still drivable and reasonably reparable condition.
Check pricing on online websites (Marketplace, Craigslist, Kijiji, Autotrader) to determine if your old car falls under this category. However, as we said, your old car is finished for good if engine or transmission has failed. You cannot sell it privately and most likely will be waste of time trying to do so.
Details on; How to Sell You Car Privately in Ontario
2) Trade in Your Old Car
If you are looking to buy another car then trade-in can be a good choice in this situation. Assuming your car is drivable, you can trade it in. Dealerships will offer a trade-in price on everything regardless of age and condition as long as they conclude a sale on a new car (or used).
You should always try a trade-in before scraping an old car. Trade-in will offer you far better value than scrap (assuming you are looking to buy another car). Dealerships will make money on the car you are purchasing from them and are generally generous on trade in values. Also, they will be retaining a new customer, so there is an incentive for them to give more than market value for old cars.
In any case, you should make your car presentable when you trade it in, at the very least you should clean it. Old and dirty cars look run down and in worst condition than actually are.
Taxes on Trade in
You ave money in taxes on a new car purchase when you trade-in your old car. Example: if a dealership offered you $1,000 for your old car as a trade-in and you are buying another car from them for $10,000, tax will be charged on remaining $9,000.
Value of your trade-in is subtracted from total amount and tax will be charged on remaining balance. So, factor in tax gains when trying to decide how to scrap your old car, might be worth it to trade-it in instead.
3) Scraping Your Car in Ontario
As name implies, scrap cars are sold for their metal value. Your car does not have to be running, cleaned or anything like that. Scrap cars are bought (or sold) in “As Is” “Where is” condition.
Scrap companies buy old cars and sell them for metal value to achieve profits. They will pick up your old car at your house and pay you in cash, they will also take care of documentation and paperwork.
However, you need to provide them original vehicle ownership and prove you are rightful owner of vehicle. Scrap value will depend on vehicle weight, bigger and heavier vehicles will have a higher scrap price.
Google “Cash For Scrap” and you will find a large number of companies listed in Ontario (Toronto and GTA) offering fast scrap car pick up service and removal.
Depending on vehicle type and model, scraping your old car can bring anywhere from $200 to $1000. Make sure to contact several of them to find the best deal. Most have calculators online and you can get a value for your scrap car instantly.
4) Donate Your Car in Ontario
You can donate a scrap car, in this case you will not get cash for it but a tax receipt. Value of tax receipt will depend on vehicle model and condition but it should be more or less equal to scraping prices.
You can even choose which charity organization to support and they will pick up your scrap car from your home. Search goggle for “donate scrap car” and you will find several companies providing car donation services in Ontario.
There are a lot charities in Ontario providing car donation services, donation values are more or less the same but you can still call several of then to find the best price and most convenient. To name a few: Kars4Kids, Canadian Red Cross, Kidneycar.
5) Sell Your Car to Junkyards or Auto Wreckers
Another way to get rid of an old car is to contact junkyards or auto wreckers companies. These are companies which collect old cars or accident vehicles, dismantle them and sell used parts. They also offer pick up service, will pick your car at your home.
Research online for auto wreckers and/or junkyards located close to you and call them. Do not just call one, call several and get the best price and convenient service. Some of auto wreckers or junkyards will offer higher amount if car is still drivable and you drive it to their location.
Premium or luxury vehicles will be generally valued higher, but they will take any brand and model. Prices should be better than scrapyards but not by much. They have to make a profit, labor to dismantle cars and storage of used parts is expensive.
You can negotiate too for higher price. However, since we are talking about scrap cars then value will be low and more or less similar between scrap yards. In any case, you got nothing to lose by negotiating, and you should.
Avoiding Scams
Whatever you decide to do with your old car, you need to find a reputable company and avoid scams. Especially when you scrap your car. You dont want your scrap car put back on the road or sold to someone else. There are a lot of shady individuals playing the role of scrap companies and might sell your car for profit to other people.
Check google reviews of companies listed online and call them to make sure they are legit and conform to laws and regulations. Also, ask for a bill of sale which proves you sold your car as scrap.
Payments in cash are the best way to deal with it and most companies offer cash payments. However, if you are offered a check then make sure scrap company is legitimate and has good reviews, you never know.
(If you are also looking for a fast and easy solution to sell your car, more here on “How To Sell Your Car Fast In Ontario”. )
Comments: If you have any questions or suggestions related to this post or Used Car Toronto in general, don’t hesitate to use comment section below.
