Should you scrap your car?

11/08/2024 03:56 PM

Are you wondering if it’s time to send your car to the scrap yard? You're not alone. According to the Federal Chamber of Automotive Industries (FCAI), Australians scrap a whopping 850,000 cars each year.

RELATED: Should mechanics charge for a diagnosis?

This scrappage causes around 1.36 million tonnes of waste. The industry recovers around 70 per cent, but a substantial amount is still destined for landfill.

Now, perhaps you have an eco-mind, or perhaps you just love your car that's reaching the end of its life. Regardless, here are a few things to keep in mind before you scrap your car.

Are there any subsidies to scrap your car?

There are currently no government subsidies or rebates available to scrap your car, unlike in the EU, UK, and Japan, which all have schemes in place to give cash back to people who scrapped their vehicles.

However, new legislation could be on the way to help people get into newer, less polluting vehicles. A study jointly carried out by the Federal Chamber of Automotive Industries (FCAI) and the Motor Trades Association of Australia (MTAA) recommends that a nationally consistent End of Life Vehicle Scheme (ELV) be established for vehicles weighing up to 3.5 tonnes, coming into law in 2026.

The logistics of how such legislation will work and how it will be funded are unclear, but the core idea is that owners of old vehicles could be given a small sum of money to put towards a new car when the older vehicle is sent to the scrapyard, much like the case in the EU, UK, and Japan.

How much do you get for scrapping a car?

The going rate for a vehicle going to scrap ranges from $200 to $700 for the entire car, with the average scrap payout for owners being $527 across Australia, according to data sourced by CarTakeBack Australia.  

Some scrap places will give an online quote ranging from $200 to $6999, but it is very rare that you would get over $1000 for a car destined for the crushers.

Most vehicles worth above $1000 are likely newer crashed vehicles without insurance or repairable vehicles that will likely be repaired or scavenged for parts.

The price you get for your vehicle will also depend on how many catalytic converters your vehicle has, as these contain precious materials that can be recycled for upwards of $600 per converter.

The rest of the vehicle will depend on its weight and the materials it is made of. Heavy steel and aluminium construction vehicles will be worth more in terms of recyclable materials than something like a hatchback made from lightweight materials.

Should I scrap my car?

There are a few things to consider before you contribute to landfill by sending your car to scrap, mainly the vehicle value, cost to repair, and the eco considerations.

Value of vehicle

Sending a vehicle to scrap can be the easiest scenario: You call a company, they come with a truck, hand you the cash, and leave with your car.

But putting your vehicle up on a free classifieds site can prove worth the time. Often, people will happily pay more than scrap value for a car they can fix up and flip at home or something they believe will be an easy fix.

By doing this, you're inadvertently saving another vehicle from a landfill and gaining more money than simply just scrapping the vehicle.

People are also looking for a vehicle they can use as a part for their existing car, so it’s always worth the time to list on a marketplace for a quick sale.

A complete car will rarely be worth less than $500, especially if it has registration.

Costs of repairs

Sometimes, the cost of repairing your vehicle can greatly outweigh its general worth.

If you own an older, less desirable vehicle that you do not maintain yourself at home, something as little as a blown head gasket, slipping clutch, or even a bad oil leak can cost you hundreds, and sometimes thousands, to repair in labour costs alone.

You should weigh up the cost of purchasing a replacement vehicle against the cost of repairs. While it may make sense not to spend $1000 on a vehicle only worth $2000-$3000, you'll still be out of pocket more to purchase a new car.

Sometimes, prolonging the life of your current vehicle can be worth more if you're short on cash.

Is it more eco-friendly to scrap your car?

Rebates in the EU, UK, and Japan all involve motorists being put into a lower-polluting car, but is it actually more eco-friendly to scrap a car and buy a brand new one?

Something you need to consider when scrapping your vehicle is the landfill implication. As aforementioned, around 70 per cent of the materials are recovered but 30 per cent is still a lot that is destined for landfill.

Then there are the CO2 emissions that are released in the recycling process of the materials. Reports say that around five per cent of all greenhouse gases a car produces in its lifetime occur when it is disposed of.

Finally, there are the CO2 emissions that are produced in the production of a brand-new vehicle. According to the Low Carbon Vehicle Partnership, building a passenger vehicle produces around 5.6 tonnes of CO2, while manufacturing a hybrid produces 6.5 tonnes and building an EV produces 8.8 tonnes.

Newer vehicles have much more in place to reduce emissions, but you will likely need to own and drive your vehicle for a few years to work off the pollution caused by the scrappage and production of your new vehicle.

If you want to be as eco-friendly as possible, the best way to do it would be to sell your older vehicle so it can be given a new life instead of 30 per cent making its way to landfill, and jump into a lightly used vehicle instead of a brand-new one.

The post Should you scrap your car? appeared first on Drive.