Sell vehicle for parts in NZ- is it really worth it?

Every vehicle owner eventually faces the challenge of dealing with an old or non-running car. When repair costs start adding up, many people ask the same question: Is it actually worth selling a vehicle for parts?

The answer depends largely on the condition of your vehicle. If your car has been heavily damaged in an accident, is no longer running, or has been deregistered for a long time, repairing or re-registering it may cost more than the vehicle is worth. In these situations, selling a vehicle for parts can often be the smarter financial decision. In this article, we’ll explore when selling for parts makes sense, why people choose this option, how much you can make, and common challenges.

What does it mean to sell a vehicle for parts?

In New Zealand, selling a vehicle for parts means you can sell your damaged or unwanted vehicles to car wreckers or car removal services for parts. Car wreckers often buy scrap, written-off, damaged, unwanted vehicles that can’t be repaired or are uneconomical to repair. After purchase, they dismantle the vehicle, test and resell functional parts, recycle scrap metal, and safely dispose of fluids and hazardous materials. Popular models such as Toyota, Nissan, Ford, and Holden often receive stronger offers because their parts are in constant demand.

When do people choose this option?

Deciding to sell a vehicle for parts usually occurs when repairing it doesn’t make financial sense. Common situations include:

• Uneconomical to repair: If the cost of repairs is more than the vehicle’s current market value, fixing it may not be worth the investment. In this case, selling it for parts can be the smarter financial decision.
• Engine or gearbox failure: Serious issues like engine failure, transmission problems, or gearbox failure are often expensive to fix. In that case, selling a vehicle for parts is the smarter option.
• Accident written-off: If the vehicle has been declared a written-off or total loss after an accident, repairing it can be costly and sometimes unsafe.
• Car won’t pass WOF: If the car is continuously failing WOF (warrant of Fitness) tests or requires ongoing repairs to remain roadworthy, selling it can be more economical than continuing to invest in fixes.
• Deregistered or non-running vehicles: Vehicles that have been deregistered for a long time and are not running tend to lose value. Selling them can prevent further depreciation and free up space.

How much can you get?

One of the most common questions car owners ask: “How much is my vehicle worth?”

The amount you receive depends on your vehicle’s condition, make, model, year, demand for parts, and metal value. Usually, the vehicles whose parts are in higher demand can fetch more than those of less popular models. In New Zealand, payouts for vehicles sold for parts and scrap can range from $300 to $15,000, depending on weight, condition, age, and engine type.

Pros and cons of selling a vehicle for parts

Benefits of selling a car for parts:

• Fast & hassle-free: Selling a vehicle for parts is quick and hassle-free. You can remove your vehicle from your location in a few minutes or on the same day, whichever you prefer.
• Free towing: Trustworthy buyers always offer free towing and removal services.
• No need to repair: No need to spend extra money for repair or cleaning the vehicle.
• Instant price: You can get paid instantly when they remove your vehicle.

Here are some drawbacks to consider:

• Lower payout compared to private selling: You will receive a lower price than with private selling because your vehicle will be scrapped for parts and will not be on the road again. And this is acceptable for non-roadworthy vehicles, as selling for scrap is often the last option for them.
• Not ideal for vehicles that are in good condition: If the vehicle is in good running condition, then selling it for parts is not a wise option. You can try Trademe or other online marketplaces to sell your vehicle, but you can fetch more if you choose them; a little weight and patience are required.

Conclusion

Selling a vehicle for parts is often the last and practical option when vehicle repair is significantly higher than the car’s market value. Instead of continuing to invest in uneconomical vehicles, selling for cash allows you instant cash without further expense. It is an environmentally responsible choice. Functional components are salvaged and given a second life in other vehicles, while the remaining materials are properly recycled.