How To Legally Scrap A Car In Ontario

It’s tempting to just leave an old car outside your property with a “FREE” sign hanging on its windshield. But knowing how to get rid of an old car legally is still the best way to go as you can make a decent amount of money from it and ensure you’re following the strict regulations in Ontario.

In this blog, we’ll go through the step-by-step process of scrapping your old vehicle so you can avoid headaches down the road.

Step 1: Prepare Your Scrap Car

First things first, prepare the paperwork to legally scrap your car in Ontario. While it’s not the most exciting part, gathering the important documents is crucial. Here’s what you’ll need to compile:

1. Your car’s ownership papers: This is basically just proving the car is legally yours to scrap.
2. A photo ID: Choose one that’s released by your government, not your old college ID or any other organizational IDs. 

It’s best to check with the scrapyard you’ve found (more on that later) about the exact documents they will be requiring, because procedures may vary from one business to another. Just to be safe, prepare the following as well:

• Lien Release: Scrap yards need to make sure that the car you’re selling cannot be claimed by other entities. Some scrapping companies may require a lien release document, so it is your responsibility to clear up any obligations from other people/banks/institutions.
• Used Vehicle Information Package (UVIP): You can get this important document from ServiceOntario. This is basically a paper that details the history of your car – showing who were the owners before you got possession of it. Some scrap yards may require it so be sure to ask them.

Remove Personal Items

This step is often overlooked, but it’s important to make sure you don’t leave any personal items inside your scrap car. Take a look at our checklist:

• Sunglasses
• Phone chargers
• GPS devices
• CDs or DVDs
• Toll pass devices
• Garage door openers
• Umbrellas
• Insurance cards
• Spare change

One of the most frequently left behind items is the 407 transponder. 407 ETR will charge you a replacement fee, so make sure to take it out.

Cancel Insurance

Don’t forget to call your insurance company to inform them you’re scrapping your old car that’s under their coverage. Another benefit of this is that you might be eligible for a refund for the unused part of your policy.

Pro tip: Before you call the scrapyard, take a good look at your car. You might be able to make a few extra bucks by selling the decent parts separately.

Step 2: Research and Select a Scrapyard

After you’ve gathered the necessary documents, the next step is to find a reputable scrapyard. Here’s what you should keep in mind in your search:

• Look only for licensed scrap yards in Ontario. Try to ask your friends if they have any recommendations.
• Compare prices by getting quotes from multiple scrap yards. And don’t hesitate to negotiate.
• Inquire regarding processes for handling cars and payment terms. Ask if they offer free towing services.

Pro tip: A sign that a scrap yard is reputable and trustworthy is if its processes are environmentally friendly.

How Much Do You Get For Scrapping A Car in Ontario?

At Scrap Car Removal Toronto, you can earn up to $20,000 in cash or at least double the amount of what you will get if you take your scrap car elsewhere.

Step 3: The Scrapping Process

Now that you’ve found the perfect scrap yard for you, it’s time to get on the actual scrapping process. It’s important to understand the key procedures that happen during the recycling:

1. Towing: Most of the time, scrap cars are not drivable. If you’ve found a scrap yard that offers free towing services, they’ll come to your house and get you car for you. They will then transport it to their compound.
2. Ownership Transfer: You will need to hand over the keys and sign papers to transfer the ownership of your scrap car to the scrapping company. Remember, you can’t scrap a car without ownership in Ontario, so this is a crucial step.
3. Bill of Sale/Receipt: This proof of transaction is important for your records.

You may also want to take note of the following:

• Make sure you’re getting paid first before handing over the keys and documents.
• You need to surrender your license plate to ServiceOntario. It is your responsibility to remove it from your car before getting it scrapped. 

Step 4: After the Scrap

After the process of scrapping your car in Ontario, there are just a few more paperwork to file to make sure you are legally compliant:

Notify the Ministry of Transportation (MTO)

This is to remove your scrapped vehicle from Ontario’s records so you won’t have future issues with registration. You can notify them through: 

• Booking an appointment on the ServiceOntario website.
• Visiting a ServiceOntario center in person. Just bring your vehicle ownership and relevant documents.

Keep Records

You need to keep copies of these documents for at least seven years:

• Vehicle Ownership/UVIP
• Bill of Sale/Receipt (received from the scrapyard)
• Proof of Notification to MTO (confirmation emails or receipts)
• Any other relevant communication (emails or correspondence with the scrapyard or ServiceOntario)

These documents will prove that you have scrapped your car in Ontario legally and can help with taxes, registration, and other administrative processes in the future.

Frequently Asked Questions (FAQ)

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How We Can Help

Scrapping your car can seem daunting, but with the right partner, you can have a smooth and profitable experience. At Scrap Car Removal Toronto, we always make sure that our processes are as easy and stress-free as possible for you.

Our experts are dedicated to providing high-quality service, competitive prices, and quick, reliable car removal. We offer free towing and same-day service. We also give top cash for scrap cars in Toronto.

Call us today at 1(866) 221-8656!