Maintaining a vehicle in the UK can be expensive. Estimates put it at around £388, which is almost half the average monthly mortgage payment. Moreover, older and damaged vehicles may be costlier due to their condition. Instead of leaving them in the garage, you can consider car scrapping.
What is Car Scrapping?
Car scrapping is a recycling program wherein a company or breaker’s yard removes and reuses the spare parts. It may also decide to sell them then disposes of the rest of the vehicle.
There are many different reasons to do it:
- The vehicle is no longer useful.
- It may already be too old to be on the road.
- The car’s condition increases the insurance premium.
- The owner is looking for ways to earn money from old or damaged cars.
- The car does not have any more value to the owner.
Who Does the Scrapping?
A person needs to hire a car scrappage service for it. Only they have the authorisation to dispose of the vehicle according to the country’s environmental laws. The process is simple.
These companies will pick up cars within five days. The removal from the garage may be about half an hour, depending on the vehicle’s condition. After the process is over, they can issue a Certificate of Destruction. The owner then presents it to the Driver and Vehicle Licensing Agency (DVLA).
How Can You Earn Money from Car Scrapping?
There are different ways. One, the scrappage company can buy the vehicle based on its fair market value (FMV). It refers to the price the market is willing to pay for the car. Many websites now allow owners to determine the FMV. These numbers are often estimates, though. Many factors can still affect the actual FMV of the vehicle, including the value of salvageable parts.
The other option is for the owners to keep the spare parts to themselves. They can then decide to use them on their other vehicles or sell them in the market.
When the car is scrapped, the owner can report it to the through Statutory Off-Road Notification (SORN). In turn, they can receive a tax refund on the remaining full months covered by their paid vehicle tax.
How Can Scrapping Affect Insurance?
Insurance companies may consider the vehicle for scrapping as a write-off. One of the possible reasons is the damage is beyond repair. When this happens, they need to give the owner the car’s value, not the repair cost.
The average lifespan of UK vehicle is already past eight years. It means not old cars deserved for scrapping as long as they are safe and useful. When it is time, though, it is best to let professionals do it while earning money in the process.