Car Scrapping FAQ: Hong Kong Owners' Questions Answered

Car scrapping (lau che, 劏車) means handing a vehicle you no longer use to a scrap car company, which dismantles it and recycles usable parts and metal. The company issues a vehicle dismantling certificate, commonly called lau che zhi (劏車紙), and the owner uses it to cancel the vehicle's registration with the Transport Department. Scrapping therefore formally ends the car's registration in Hong Kong – it is not just "selling the car".

A car in good condition with market demand usually fetches more as a used car. An older, damaged or hard-to-sell car, or one with high repair costs, is quicker and simpler to scrap. Scrapping can be completed the same day if documents are ready, while selling may mean waiting for buyers, inspections and negotiation – and delays can cost you the licence fee refund if your licence is close to expiry.

Normally no. The scrap car company pays you based on the value of parts and metal. Whether towing or paperwork fees apply depends on the company, so confirm in writing (for example on WhatsApp) that there are no other charges. Pak Lam provides free quotes, free on-site assessment and free towing, and handles the cancellation paperwork without a service fee. Be cautious if anyone asks you for a deposit.

Compare "repair cost plus the next year of running costs (licence, insurance, parking)" with "the net scrap payment plus any licence refund plus the costs you save". Scrapping usually makes sense when repairs approach or exceed the car's market value, problems keep recurring or you rarely drive. There is no single percentage rule that suits everyone.

Ideally hand over the car, get the dismantling certificate and submit TD184 before you leave, because the original registration document, licence and ID are needed. A practical timeline:

• 4–6 weeks before departure: get quotes and decide whether to keep your plate number
• 3–4 weeks before: hand over the car, receive full payment and the certificate
• Within 15 days of dismantling: submit TD184 and return the licence, in person or via an agent
• Before you leave: cancel insurance, parking and autopay, and confirm how you will receive the licence refund

If cancellation will happen after you leave, sign TD184 in advance and prepare authorisation documents for a relative or the scrap company. A retained plate number must be assigned to another vehicle in your name within 12 months, so it rarely suits long-term departures.

A new vehicle registration and licensing regime took effect on 22 December 2025. The TD issues notices to owners of vehicles unlicensed for two years or more; within three months the owner must renew the licence, scrap the vehicle (or permanently remove it from Hong Kong) and submit TD184, or apply for exemption using form TD651. Failing to act is an offence. The maximum penalty is a HK$10,000 fine and 3 months' imprisonment for a first conviction, and HK$25,000 and 6 months for each subsequent conviction. The TD will not cancel the registration automatically. An unlicensed car must not be driven on the road, so it will need towing, and no licence refund applies.

The original vehicle registration document, the original vehicle licence (if still valid), the registered owner's proof of identity (HKID card; passport for non-residents; Certificate of Incorporation for a limited company) and all keys. To cancel registration you also need the original dismantling certificate and a completed TD184, plus the original allocation certificate for a personalised plate, and TD129 if you want to keep the plate number.

Yes. When someone else cancels the registration for you, a copy of the registered owner's identity document and the agent's original HKID card are required; TD184 is signed by the registered owner. Payment should go to the registered owner or follow their written instructions. If the registered owner has passed away, the case involves the estate, so check the required documents with the TD first.

For a limited company, the Certificate of Incorporation serves as the owner's proof of identity. Each vehicle needs its own dismantling certificate and TD184 – miss one and it stays registered to the company. Several vehicles can be assessed and towed together; payment should go to the company account with a receipt for your records. For lorries, see our truck scrapping guide.

There is no fixed price list. Quotes depend on vehicle type and weight, make and model, age and mileage, whether it starts, collision or flood damage, whether the main parts are complete, and special equipment such as tail lifts or cranes on lorries. See our scrap car price guide.

Send photos of all four sides, close-ups of damage, the odometer and the registration document, plus a 10–20 second video of the engine starting. State whether it starts, any damage or flooding, missing parts and where the car is parked. Use the same information with every company. Validity varies; Pak Lam quotes are valid for 7 days provided the car matches the information supplied.

Companies have different parts sales channels and assumptions, some quotes exclude towing or paperwork fees, and some firms quote high then cut the price on site. Compare the net amount: quote minus towing, paperwork and any on-site deductions. Your total return is the net amount plus any licence refund. Also check whether terms are confirmed in writing and whether you are paid in full at handover.

Usually yes – it is valued on its recyclable parts and metal, though typically lower than a similar car that runs. If it only has a flat 12V battery, say so. Removing main parts yourself (engine, gearbox, battery, catalytic converter, tyres) normally lowers the quote and can be dangerous; never touch an EV's high-voltage battery.

Pak Lam covers all 18 districts. Collection is usually within 24 hours in the New Territories and Kowloon, 24–48 hours on Hong Kong Island, and 48–72 hours on outlying islands (book 48 hours ahead), subject to scheduling and traffic. Cars that can still be driven safely and legally may also be driven to our scrapyard in Chuen Lung Village, Route Twisk, Tsuen Wan – please book on WhatsApp first. See our door-to-door scrapping process.

You should be paid in full when you hand over the car – no deposits, instalments or "we'll transfer after towing". Count cash; for transfers, check the credit in your own banking app rather than relying on a screenshot. Get a receipt. Note that a receipt, a handover confirmation and the dismantling certificate are three different documents; only the certificate is used to cancel registration.

Check under seats, door pockets, the glovebox and boot; remove Octopus and parking cards, dash cams and memory cards; delete your phonebook, navigation addresses and Bluetooth pairings. For an EV, remove the car from the brand app and take the portable charging cable if you want it.

Yes. If the car matches the photos and description you sent and the company still makes a large cut, you can stop the deal before handing over the car or accepting payment. A new deduction is only reasonable for a problem that was not disclosed beforehand. Learn more in our guide to avoiding scrap car scams.

The certificate is issued by the scrap car company that dismantles the vehicle – not by the TD or EPD, and it carries no government watermark. The TD reminds owners to make sure the company's Business Registration number appears on the certificate; it should also show the chassis number and registration mark, the date and place of dismantling, the company name, and a signature with company chop. Photograph or copy it before submitting the original.

Under regulation 20 of the Road Traffic (Registration and Licensing of Vehicles) Regulations (Cap. 374E), the registered owner must notify the Commissioner for Transport in writing within 15 days after the vehicle is dismantled, by submitting TD184 with the required documents. Until registration is cancelled, the registered owner remains responsible for all legal liabilities arising from the vehicle.

Submit it at a TD licensing office – Hong Kong (3/F, United Centre, 95 Queensway, Admiralty), Kowloon (2/F, Cheung Sha Wan Government Offices, 303 Cheung Sha Wan Road), Kwun Tong (5/F, Kowloon East Government Offices, 12 Lei Yue Mun Road) or Sha Tin (2/F, Sha Tin Government Offices, 1 Sheung Wo Che Road), Monday to Friday 09:00–17:00 – or post it to the address on the form, or appoint an agent or the scrap company. The TD does not charge for cancelling registration; any private service fee should be listed separately.

Yes, if you return a valid licence with at least 60 days remaining. The refund is the annual licence fee × 0.24% × remaining days; nothing is refunded below 60 days. For example, with an assumed annual fee of HK$5,000, 180 days remaining gives HK$2,160. Even with 365 days left you get about 87.6% of the annual fee, not the full amount.

Yes. Submit TD129 when cancelling registration. The mark is retained for 12 months and must be assigned to another vehicle owned by the same person within that time; the TD charges HK$560 per mark each time. For a personalised plate, also submit the original allocation certificate. Insurance refunds depend on your policy, so contact your insurer directly.

Yes. The TD procedure is the same as for petrol cars. The difference is the high-voltage battery, which must be handled safely; retired EV batteries are regulated under the Waste Disposal Ordinance (Cap. 354). Hybrids have both a fuel system and a high-voltage battery. Flooded or crashed EVs should not be charged or started – if you notice smoke, smells or heat, move away and call 999. See our electric vehicle scrapping guide.

No. The first registration tax concession for electric private cars, including one-for-one, ended after 31 March 2026. A one-off arrangement covers electric private cars ordered, or arranged for shipment for own use, on or before 25 February 2026; applications must be made by 24 February 2027. The replaced private car must have been first registered in Hong Kong for at least 6 years and owned by the same person for at least 18 months, and its registration must be cancelled no later than, and within 3 months of, the new car's first registration application. "Quota transfers" do not meet the conditions. Electric commercial vehicles remain fully exempt from first registration tax until 31 March 2028. Details: one-for-one scheme ended.

Confirm that the certificate will show the company's Business Registration number, and prefer a company with a real scrapyard and address, clear written quote terms, no on-site price cuts, all fees stated upfront, payment at handover, and a clear answer on who cancels the registration. More in choosing a scrap car company.

Not for ordinary scrapping. The TD's requirement is that the company's Business Registration number is shown on the dismantling certificate. The Environmental Protection Department (EPD) list of registered dismantlers was set up for the ex-gratia scheme to phase out Euro IV diesel commercial vehicles.

No. The scrap company pays you; you should not pay any deposit, handling fee or "quota transfer fee". Refuse such requests. 18222 is the Anti-Scam Helpline for 24-hour enquiries, not a crime-reporting line; if you have been scammed, report it at a police station, and call 999 in an emergency.

Pak Lam's official phone and WhatsApp number is 6799 5101, our website is paklam.com.hk, and our scrapyard is in Chuen Lung Village, Route Twisk, Tsuen Wan. Pak Lam never asks owners to pay a deposit or handling fee.

Keep evidence and raise the issue in writing first. If unresolved, complain to the Consumer Council (hotline 2929 2222); money claims up to HK$75,000 can go to the Small Claims Tribunal; report suspected fraud to the police.