Hong Kong has a lot of scrap car companies, and they vary widely in how they quote, collect vehicles and handle paperwork. If you choose the wrong one, you might have your price cut on the spot or find hidden fees taken off, and in worse cases you might never get paid, never receive the vehicle dismantling certificate, commonly called lau che zhi (劏車紙), or miss the deadline to cancel your car's registration. This guide from Pak Lam Car Scrapping, a Tsuen Wan scrap car company founded in 2011, covers how to choose a scrap car company and a collection service. It includes a scoring checklist, ways to verify a company, what happens on handover day, how to check the certificate and what to do if there is a dispute.
Key takeaway: The best scrap car company is not necessarily the one with the highest phone quote. Look for five things. The certificate should show the company's Business Registration number. The company should have a physical yard you can visit. The quote should be confirmed in writing, with no cuts on the spot if the car matches its description. You should be paid when you hand over the car, with no hidden fees. And the company should be clear about who files the deregistration within 15 days.
Contents
- Why your choice of scrap car company matters
- Three types of scrap car companies in Hong Kong
- 10-point scrap car company checklist
- How to verify a scrap car company
- Questions to ask before you book
- Common sales lines and how to respond
- 8 costs of choosing the wrong company
- Choosing by vehicle type and parking location
- Door-to-door collection or driving to the yard
- Handover day timeline and payment safety
- 7 things to check on the certificate
- WhatsApp confirmation template
- After handover and dispute handling
- How Pak Lam measures up
- FAQ
Why your choice of scrap car company matters
Scrapping a car is not like an ordinary sale. After you hand over the car and get paid, you still need the dismantling certificate, and then you have to cancel the registration with the Transport Department (TD) within the deadline. The company's job continues after handover, and that is the part owners have least control over.
| Area | What the company controls | Right choice | Wrong choice |
|---|---|---|---|
| Money | Quote, fees, payment | Paid the quoted amount on the spot | Price cuts, hidden fees, late or no payment |
| Documents | Certificate content and timing | Complete certificate, timely deregistration | Deregistration not done within 15 days |
| Legal liability | Real dismantling and deregistration | Liability clearly ends | Registered owner remains liable for the vehicle |
According to the Transport Department, a registered owner who disposes of a vehicle without cancelling its registration remains responsible for all legal liabilities arising from it. The required documents should be submitted or posted to a TD Licensing Office within 15 days.
The highest quote is not always the best. A company might quote much higher than the others because it really does have better outlets for parts. It might also be assuming your car is in excellent condition, or it might be planning to cut the price on arrival. What counts is the net amount you actually receive. See our high-price car scrapping guide and the scrap car price guide for how quotes are worked out.
Three types of scrap car companies in Hong Kong
| Compare | Company with its own yard | Middleman | Phone or social media only |
|---|---|---|---|
| How it works | Collects, tows, dismantles and issues the certificate itself | Collects the car, then passes it to another yard | No public address; contact by messaging apps only |
| Can you visit? | Yes | Depends | Hard to |
| Where the car goes | Clear | Ask | Unknown |
| Certificate issuer | Same company | May differ | Unknown |
| Recourse in a dispute | Easier | Depends | Difficult; best avoided |
A middleman is not automatically a scam. But you are entitled to know which yard dismantles the car, which company issues the certificate and who pays you. If the company on the certificate is not the one you dealt with, ask why before handover.
10-point scrap car company checklist
Give one point for each item the company passes. A score of 8 or more is worth considering; below 5, look elsewhere.
| Item | Pass (1 point) | Red flag (0) |
|---|---|---|
| 1. Certificate | Shows Business Registration number and full vehicle details | No BR number, vague details |
| 2. Physical yard | Proper address, visitors welcome | Mobile number only, won't give an address |
| 3. Written quote | Conditions and validity confirmed on WhatsApp | Verbal quotes only |
| 4. No on-site cuts | Pays the quote if condition matches | Big cuts on arrival for various reasons |
| 5. Transparent fees | Towing and admin fees stated upfront | Hidden charges at handover |
| 6. Paid at handover | Cash counted or transfer confirmed | "We'll pay after towing" |
| 7. No deposit | Owner pays nothing upfront | Asks for a deposit or "transfer fee" |
| 8. Deregistration | Says who files TD184 and when | Never mentions the 15-day limit |
| 9. Own tow trucks | Tows broken-down cars too | Outsourced towing, unclear charges |
| 10. Track record | Clear history, patient answers, no pressure | Unverifiable background, dismissive |
Two more things to check: the quote validity period (without one, the price can change "because the market moved") and a receipt showing the company name, date, plate number, amount and payment method.
How to verify a scrap car company
| Check | How |
|---|---|
| Physical address | Look it up on a map, and ideally visit in person |
| Business Registration number | Ask for it and match it to the certificate. You can search business registration records with the Business Registration Office of the Inland Revenue Department, or search the Companies Registry for a limited company. |
| Contact details | Use only the numbers listed on the official website or page, because impersonation does happen |
| Payee account | The account name should match the company name |
| Reviews | Look for specific details such as the vehicle and the handover, and see how negative reviews were handled |
Questions to ask before you book
- Where is your yard, and can I visit?
- Will the certificate show your Business Registration number? Who issues it, and where is the car dismantled?
- What condition is the quote based on, and how long is it valid?
- Do you charge for towing or for handling deregistration? Are there any other fees?
- How soon can you collect? Do you pay on the spot, by cash or transfer? Do you give a receipt?
- When is the certificate issued? Who files TD184, and by when? Can you also handle keeping my plate number (TD129)?
Clear, quick answers are a good sign. Vague answers like "we'll see on the day" are a warning.
Common sales lines and how to respond
| What you hear | What it may mean | Your reply |
|---|---|---|
| "Highest price in Hong Kong" | Possibly unfounded | "What condition is that based on? How long is it valid?" |
| "This price is today only" | Pressure | "I'd like to compare first." |
| "We'll give the real price on site" | Possible on-site cut | "The photos are clear. Will you honour this price if it matches?" |
| "We'll pay after we inspect it at the yard" | Payment risk | "I need payment at handover." |
| "We'll post the certificate later" | Possible delay | "When exactly? I have 15 days to deregister." |
| "Pay a small deposit to book" | High risk | "You pay me, not the other way round." |
For more scam tactics and what to do if you've been caught out, see how to avoid scrap car scams.
8 costs of choosing the wrong company
| Cost | Best prevention |
|---|---|
| 1. Price cut on arrival | Clear photos plus written quote conditions |
| 2. Hidden fees | Confirm in writing that there are no other charges |
| 3. Never paid | Get paid at handover |
| 4. Deposit scam | Never pay anything upfront |
| 5. Faulty certificate | Ask about the format beforehand and check every item |
| 6. Liability continues | File TD184 within 15 days and keep proof |
| 7. Lost licence fee refund | Check the licence expiry date and choose a company that can collect quickly |
| 8. One-off concession arrangement fails | Time the scrapping around the new car's first registration application. See one-for-one scheme ended |
Example (hypothetical figures): suppose the annual licence fee is HK$5,000 and the licence has 70 days left. Company A collects within 2 days, leaving about 68 days, so the refund is 5,000 × 0.24% × 68 = HK$816. Company B takes two weeks, leaving about 56 days, so there is no refund. A refund is only paid when at least 60 days of the licence remain, calculated as annual fee × 0.24% × remaining days.
Choosing by vehicle type and parking location
- Private cars and MPVs: Compare the quote conditions, fees and paperwork follow-up. Mention it if the car still starts and all its parts are present.
- Vans and 5.5–30 tonne trucks: Check the company can tow large trucks and will price tail lifts, cranes and refrigeration units separately. Company-owned vehicles need the Certificate of Incorporation.
- Fleets: Ask for coordinated inspection and towing. Each vehicle needs its own certificate and TD184.
- EVs and hybrids: Never remove the high-voltage battery yourself. Ask how the battery will be removed, stored and disposed of, and clear your personal data from the infotainment system and the brand's app.
- Basement car parks and village roads: A professional company asks about height limits, road width and gates before booking, so it doesn't turn up and find it can't tow the car.
- Accident or flood-damaged cars: Check with your insurer first. Do not charge or start a flooded or crashed EV.
Door-to-door collection or driving to the yard
| Compare | Door-to-door collection | Drive to the yard |
|---|---|---|
| Vehicle condition | Any, including non-runners | Only cars that can be driven safely and legally |
| Towing | Free with Pak Lam | Not needed |
| Car park management | Notify in advance | Not needed |
| TD paperwork | Same: certificate plus TD184 within 15 days of dismantling | |
Pak Lam's usual response times are within 24 hours in the New Territories and Kowloon, 24–48 hours on Hong Kong Island, and 48–72 hours for outlying islands (please book 48 hours ahead). The yard is at Chuen Lung Village, Route Twisk, Tsuen Wan. See contact us for the map.
Handover day timeline and payment safety
| Stage | What to do and check |
|---|---|
| Day before | Empty the car; remove your Octopus card, parking card and dashcam; clear the infotainment system; tell the car park management |
| Truck arrives | Plate, chassis number and condition match what you described |
| Price | Same as the WhatsApp quote, with no extra charges |
| Payment | Count the cash, or confirm the transfer has arrived and the payee name is right |
| Documents | Certificate and receipt; take photos |
| Within 15 days of dismantling | File TD184, plus TD129 if you want to keep your plate number |
If the transfer comes from a personal account, ask why and request a receipt that shows the company name. See the door-to-door scrapping process for each step.
7 things to check on the certificate
The TD reminds owners to make sure the scrap company's Business Registration number appears on the vehicle dismantling certificate. TD guidance for the one-for-one scheme also lists the following items.
- Chassis number of the dismantled vehicle
- Registration mark (plate number)
- Date of dismantling
- Place of dismantling
- Name of the scrap company
- Its Business Registration number
- Signature of a company representative with the company chop
If anything is wrong, ask for a new certificate rather than accepting handwritten corrections. Keep a copy, because the original goes to the TD.
WhatsApp confirmation template
Hi, I'd like to confirm the scrapping arrangement:
1. Quote: HK$___, based on the car ___ (starts / does not start, parts complete, damage ___)
2. Quote valid for ___ days
3. No other charges (towing, handling, documents). Correct?
4. Payment at handover by cash / transfer
5. The certificate will show your Business Registration number. When will it be issued?
6. TD184 will be filed by ___, completed by ___
7. Collection date: ___ Location: ___
Send it to 6799 5101.
After handover and dispute handling
- Under the Road Traffic (Registration and Licensing of Vehicles) Regulations (Cap. 374E), section 20, the registered owner must notify the Commissioner for Transport in writing within 15 days of the vehicle being dismantled, by filing TD184.
- To keep your plate number, file TD129 with the deregistration. The number is retained for 12 months for use on another vehicle in your name, and the TD charges HK$560 per number each time.
- Since 22 December 2025, the TD sends notices to owners of vehicles that have been unlicensed for two years or more. Within 3 months, the owner must relicense the vehicle, scrap and deregister it, or apply for exemption on form TD651. Failing to act is an offence.
If a dispute comes up, keep all the evidence (quote, chats, receipt, photos) and raise the problem in writing. If it isn't resolved, contact the Consumer Council (2929 2222). Money claims of up to HK$75,000 can be brought at the Small Claims Tribunal. If you suspect fraud, report it to the police or call the Anti-Scam Helpline 18222.
The Environmental Protection Department (EPD) list of "registered dismantlers" applies to the ex-gratia scheme for phasing out Euro IV diesel commercial vehicles. It is not a requirement for every scrap car company. For an ordinary car, the key check is the Business Registration number on the certificate.
How Pak Lam measures up
| Item | Pak Lam Car Scrapping |
|---|---|
| Yard | Own yard at Chuen Lung Village, Route Twisk, Tsuen Wan; visitors welcome |
| Certificate | Shows our Business Registration number |
| Quote | WhatsApp 6799 5101 with photos for a reply usually within minutes; valid 7 days if the condition matches |
| Fees | Quote, on-site inspection, towing and certificate all free; no deposit |
| Payment | Cash or transfer on the spot, with a receipt |
| Paperwork | No handling fee for TD184 since 1 January 2025; no handling fee for TD129 (TD's HK$560 fee applies) |
| Track record | Founded in 2011; more than 10,000 vehicles handled |
| Hours | Daily 09:00–20:00; public holidays 09:00–18:00; 24-hour emergency towing by appointment |
See our services for the vehicle types we take.
FAQ
For general questions about refunds, documents and keeping your plate number, see the car scrapping FAQ.
What matters most when choosing a scrap car company?
Most important, the dismantling certificate must show the company's Business Registration number, which the TD asks owners to confirm. After that, look for a physical yard, a clear quote with no cuts on the spot, payment at handover, and a clear answer on who files the deregistration within 15 days.
How can I check a scrap car company is genuine?
Match the Business Registration number on the certificate against business registration records, or search the Companies Registry for a limited company. Check the yard address on a map or visit it, and only use contact details from the official website or page.
Is a middleman always unreliable?
No. But you should know which company dismantles the car, which company issues the certificate and who pays you. If the company named on the certificate is different from the one you dealt with, ask why before handover.
Is it normal to be paid from a personal account?
Ask why, and request a receipt that shows the company name. Check the company details on the certificate too. You are better protected when the account name matches the company.
Can you collect a car from a basement or estate car park?
Yes. When you ask for a quote, give the location, height limit and access rules, and let the management office know in advance. A professional company asks about these before booking.
What kind of company suits a corporate fleet?
Choose a company that can tow large trucks, prices special equipment separately and can coordinate towing and paperwork for several vehicles. Company vehicles need the Certificate of Incorporation, and each vehicle needs its own certificate and TD184.
This guide is for general reference only and is not legal advice. Policies and fees may change, so check the latest government announcements. Scenarios and figures are illustrative, and quotes depend on each vehicle's condition.