2024 Hong Kong car recycling/scrapping procedures and precautions to take (and how to keep your vehicle registration mark)

Step 1: Decide whether to have your car scrapped

When deciding whether to have your car scrapped, you can consider the following factors. Common reasons for scrapping a car include:

• The repair cost is too high or the time needed is too long (for example, the repair cost is 60% of the car’s price, or it takes a month to repair)
• The car model has lost its attractiveness in the market and is difficult to resell
• You do not want to handle a resale
• You are in a rush to cash out
• You expect your car will have frequent breakdowns in the future and thus will require frequent repairs

Step 2: Contact a registered car scrapping company

Contact the car scrapping companies registered with the Environmental Protection Department. Some of them provide online quotations. Car owners only need to enter the information of their vehicle to get quotations. Most of the required information can be found on your Vehicle Registration Document, and usually include:

• Vehicle’s model and year of production
• Transmission type (manual or automatic)
• Engine displacement (expressed in cc)
• Vehicle’s body condition and how well it drives
• The area the car is parked in

A recycling quotation will usually be received within 24 hours. If you are satisfied with the price, you can agree with the car scrapping company on a suitable time and place for the vehicle’s delivery. If your vehicle can no longer be driven, you should ensure that all haulage and transportation costs will be paid by the car scrapping company. Otherwise, you will be responsible for arranging and paying to have your car towed to the site of the car scrapping company.

Step 3: Clear your own items from the car

Remember to take your own items from the car. The most frequently forgotten items include "AutoToll", the "oil cards", and the "parking card" in the sun visor.

Step 4: Bring all the documents for the delivery

On the delivery day, please bring the following documents:

• The original Vehicle Registration Document
• The original and a copy of the vehicle license
• The original and a copy of the owner's Hong Kong Identity Card (HKID Card)
• The car keys

The staff of the car recycling company will inspect the car on the spot to check the performance and condition of the car. If everything is normal, the car recycling company will pay the collection price in cash or by cheque, and provide a receipt and a Vehicle Scrapping Certificate (commonly called the car scrapping paper) as proof of car scrapping, so that the car owner can cancel the vehicle registration at the Transport Department (TD). The scrapping certificate should specify the date and time of delivery, and include the company stamp and business registration number of the car scrapping company.

A warm reminder from Kwiksure: remember to take the vehicle license from your vehicle.

Step 5: Cancel the vehicle registration at the Transport Department

Within 15 days after your vehicle is delivered to the car scrapping company, you will need to submit or send by mail the following documents to the TD to complete the cancellation of the vehicle registration. Otherwise, you will be held responsible for all legal liabilities related to the vehicle.

• The original Vehicle Registration Document
• The original vehicle license (if still valid)
• The original Vehicle Scrapping Certificate
• Your identity document (if another person performs this step on your behalf, that person will have to present their HKID Card)
• A completed Form TD184 (Notice of Cancellation of Vehicle Registration)
• The original Certificate of Allocation of Personalized Registration Mark (if applicable)

Sources:

Transport Department

Environmental Protection Department

Here is the Environmental Protection Department's list of registered car scrapping companies under the Ex-gratia Payment Scheme for Phasing Out Euro IV Diesel Commercial Vehicles.

If you choose an unscrupulous middleman to have your car scrapped on your behalf, there is a chance that the car may change hands many times during the process, causing your personal information to be leaked. As a matter of fact, that middleman may not even be a legally qualified car scrapping company. They may just buy the car from you, then hand it over to criminals who then use it to commit crimes. You could then be arrested by the police as the registered owner of a vehicle used in a crime.

Some unscrupulous middlemen would hold themselves out as providing a car scrapping service, when in fact, what they are after is the Vehicle Registration Document, causing the owner to suffer losses. Therefore, it is crucial to choose a vehicle scrapping company that is reputable and registered with the government.

If you wish to keep the vehicle registration mark for use on another vehicle under your name in the future, you may apply to retain the vehicle registration mark at the same time you cancel your vehicle registration with the TD.

Applicants are required to complete the "Application to Transfer or Retain a Vehicle Registration Mark" (Form TD129) and "Notice of Cancellation of Vehicle Registration" (Form TD184). The original Vehicle Registration Document, the original vehicle license, the original Vehicle Scrapping Certificate, and the identity document of the registered owner must be submitted together with the application. The application to transfer or retain a vehicle registration mark must be processed at the Hong Kong Licensing Office or the Kowloon Licensing Office from Monday to Friday, and the fee is HKD $560. By contrast, the application for vehicle registration cancellation is free of charge.

The retained vehicle registration mark will be reserved for 12 months. If the applicant fails to transfer the registration mark to another vehicle before the deadline, the Commissioner for Transport will cancel the current allocation of the vehicle registration mark, and reallocate it to any other vehicle.