Can I scrap my car if I still owe finance?
Can you scrap a car with outstanding finance?
Lots of people purchase their cars on finance, but if your car no longer suits your needs and you need to scrap it – can you take it to the scrap yard while you still have outstanding finance on it? Unfortunately, if you still have outstanding finance on the car when you scrap it then the company that lent you money will reclaim their money back.
Scrapping a vehicle that still has finance means you’re scrapping someone else’s car.
If this happens, you will have to pay a fee and might be prosecuted.
What can you do?
Contact your bank or loan provider and ask for the final settlement figure. Once this is paid, you can do what you like with the car as you are now the owner.
A second option is to fix the car until it is roadworthy and drive it for as long as you owe finance on it.
The main issue is that if your car still has finance owed, scrapping it is not an option. If your car is not roadworthy, think about either settling the loan prior to scrapping it or paying what’s needed to make it roadworthy.
Once you have cleared the finance on your vehicle, contact Recycle A Car for the best price for your unwanted vehicle. Contact our car waste professionals on 0345 206 4000 or enter your registration online.