Why do scrap car companies quote such different prices for the same car? And should you repair the car, sell it second-hand or scrap it? This guide from Pak Lam Car Scrapping in Tsuen Wan explains how scrap car quotes are worked out, what affects the price, how the licence fee refund is calculated, how to decide between repairing and scrapping, which quoting traps to watch for and how to get a better price.
Key takeaway: There is no fixed price list for car scrapping. Each car is quoted on its own type and weight, model, age and mileage, whether it starts, how much damage it has, whether parts are missing and any special equipment it carries. Compare the net amount after all fees, then add the licence fee refund from the Transport Department. When repair costs come close to or exceed the car's value, scrapping is usually the better choice.
8 key points on scrap car prices
- No fixed price list: Each car is assessed individually, and any "price list" is only a rough guide.
- Compare the net amount: This is the quote minus towing, handling and any other fees.
- Total return = net amount + licence refund: A refund is only available if at least 60 days remain on the licence.
- 59 days vs 60 days: Drop below 60 days and the refund becomes zero.
- Better information gives a more accurate quote: Clear photos, a start-up video and an honest description reduce price cuts on site.
- Don't remove parts: Missing major parts usually lower the quote noticeably.
- You never pay upfront: Be wary of anyone asking for a deposit.
- "One-for-one quotas" are worthless now: Apart from the one-off arrangement, be suspicious of high prices offered in a quota's name.
How a scrap car quote is calculated
A scrap car company makes its money from two sources: reusable parts (engine, gearbox, lights, doors, mirrors, electronics) and metal (body and chassis, so heavier cars yield more). Its costs include towing, labour and yard space, handling oils, coolant and brake fluid, dealing with batteries (including EV high-voltage packs) and paperwork.
In simple terms: quote ≈ value of reusable parts + metal value − handling costs − company margin. The better the condition, the more complete the parts and the stronger the demand, the higher the quote. Long towing distances or difficult access pull it down.
Public market information suggests that an ordinary private car usually fetches from a few thousand dollars upwards, with good-condition or popular models possibly fetching more. Trucks usually fetch more than private cars because of their weight. Online "price lists" are only rough ranges. For an accurate figure, send full details and ask for a quote.
7 factors that affect the scrap price
| Factor | Effect on price | What you can do |
|---|---|---|
| 1. Vehicle type and weight | Trucks, MPVs and SUVs carry more metal | Give the class and weight from the registration document |
| 2. Make and model | Strong local demand for parts means higher value | Send a photo of the registration document or the exact model |
| 3. Age and mileage | Newer, low-mileage engines and gearboxes are worth more | Send the first registration year and an odometer photo |
| 4. Whether it starts | A car that runs has more valuable major parts | Record a short start-up video |
| 5. Crash, flood, rust | More damage means fewer usable parts | Be honest and send close-ups |
| 6. Major parts complete | A missing engine, gearbox, battery, catalytic converter or tyres lowers the quote | Don't remove parts yourself |
| 7. Special equipment | Tail lifts, cranes and refrigeration units can be priced separately | Send photos and model details |
For trucks, see the truck scrapping guide. For EVs and hybrids, never remove or tamper with the high-voltage battery, and mention any battery warning light. The EV scrapping guide has more detail.
Why quotes differ so much between companies
| Reason | How to tell |
|---|---|
| Different outlets for selling parts | A normal difference |
| Different assumptions about condition | Ask what condition the quote is based on |
| Fees included or not | Compare the net amount |
| Towing distance and difficulty | Give the exact location |
| High quote, then a cut on site | Be careful if one quote is far above the rest |
| A middleman taking a margin | Ask where the car will actually be dismantled |
See how to choose a scrap car company for a full checklist.
Total return: net amount plus licence refund
Total return = (quote − towing − handling − other fees) + licence refund
The licence refund is paid by the Transport Department (TD) to the registered owner. It is not part of the scrap company's quote, so compare the two separately.
- A refund is only paid if at least 60 days of the licence remain. Refund = annual licence fee × 0.24% × remaining days.
- If the licence is returned within 15 days of the dismantling date shown on the certificate, the remaining days are counted from the day after dismantling.
| Days remaining (assumed annual fee HK$5,000) | Refund |
|---|---|
| 365 | HK$4,380 |
| 180 | HK$2,160 |
| 90 | HK$1,080 |
| 60 | HK$720 |
| 59 | HK$0 |
The HK$5,000 figure is only an example to make the maths easy. Even with 365 days left, you get back only about 87.6%. Check the TD for your actual licence fee.
Timing: licence, insurance and parking
| Licence time left | Suggestion |
|---|---|
| More than 4 months | Time to compare, but the earlier you act the bigger the refund |
| 2–4 months | Get quotes soon and allow time for towing and deregistration |
| 60–75 days | Very close to the cut-off; choose a company that can tow the same day or within two days |
| Under 60 days or expired | No refund; just compare net amounts, and deal with an expired car quickly |
Also check your insurance policy terms for any refund, time handover to your parking contract's notice period, and remember that since 22 December 2025, owners of vehicles unlicensed for two years or more must act within 3 months of receiving a TD notice.
Repair, sell or scrap? How to decide
| Compare | Scrap | Repair | Sell second-hand | Dealer trade-in | Export |
|---|---|---|---|---|---|
| Outcome | Dismantled, deregistered | Stays in your name | Transferred, back on the road | Resold or scrapped, depending on the dealer | Shipped overseas, deregistered |
| Time | Quote in minutes; same-day handover possible | Depends on parts and garage | Possibly weeks | Done with the new car purchase | Depends on exporter and shipping |
| Money | Paid in full at handover | You pay for repairs | Depends on the buyer | Usually offset against the new car | Depends on exporter |
| Liability ends | After TD184 deregistration | Still yours | After transfer | Depends on transfer or scrapping | After TD184 deregistration |
Six quick questions
- Has the car been crashed or flooded, or does it not start? If yes, lean towards scrapping.
- Is the repair quote close to or above the car's value? If yes, lean towards scrapping.
- Has the same part (gearbox, engine, ECU) failed twice in the past year? If yes, lean towards scrapping or selling.
- Is there local second-hand demand for the model? If yes, get a dealer price and compare it with the scrap net amount plus refund.
- Do you still drive every week? If yes and the car is in good condition, repair it.
- Are there still 60 days or more on the licence? If yes, act early to keep the refund.
A simple cost framework
A, the cost of repairing: repair quote + likely further repairs over 12 months + 12 months of licence, insurance and parking + inspection fees (if applicable) − the car's value after 12 months.
B, the return from scrapping now: scrap net amount + licence refund + parking and insurance saved.
Hypothetical example: repair HK$18,000 + running costs HK$36,000 − residual value HK$8,000 = A of HK$46,000. Scrap net amount HK$7,000 + refund HK$2,160 (HK$5,000 fee, 180 days left) = B of HK$9,160. This doesn't mean you should always scrap. It shows what keeping an unreliable car really costs. If you still need a car, factor in the cost of being without one.
Before scrapping, pause if the car is in good condition and a popular model, if the fault is a one-off minor one, if there is still finance owing (settle it with the lender first), or if an insurance claim on an accident car is still open.
10 quoting traps
- High phone quote, big cut on site: Confirm the quote conditions in writing, and walk away if the car matches its description.
- Towing not included: Ask about towing fees upfront.
- Admin and document fees: Get written confirmation that there are no other charges.
- Deposit demanded: The company pays you, never the reverse.
- "Quota" premiums: The one-for-one scheme has ended.
- "All-in" figures: Ask for the net scrap amount on its own, because the refund comes from the TD.
- Deliberate delays: Waiting can push the licence below 60 days.
- No validity period: Ask how long the quote stands.
- Late payment: Get paid at handover.
- Faulty certificate: The TD asks owners to make sure the company's Business Registration number appears on the vehicle dismantling certificate, commonly called lau che zhi (劏車紙).
More scam tactics: avoid scrap car scams.
12 ways to get a better scrap price
- Scrap while 60 or more days remain on the licence, and while the car still starts.
- Keep the engine, gearbox, battery, catalytic converter, tyres and original parts in place.
- Have the registration document and all keys ready.
- Send clear photos of all four sides, the odometer and the engine bay, plus a start-up video.
- Be honest about damage and mention any special equipment.
- Send the same details to several companies, compare net amounts and total returns, and scrap several vehicles together if you can.
For more on getting a high price, see the high-price car scrapping guide. For what happens on the day, see the door-to-door process.
The end of one-for-one and scrap prices
Electric private cars whose first registration is applied for on or after 1 April 2026 no longer receive the concession. A one-off arrangement applies to cars ordered on or before 25 February 2026. Scrap quotes now reflect parts and metal only. Electric commercial vehicles remain fully exempt from first registration tax until 31 March 2028. See one-for-one scheme ended.
After you're paid
- Check the certificate for the BR number, plate, chassis number and dismantling date.
- File TD184 within 15 days of dismantling. Until you do, the registered owner remains liable.
- Return a valid licence to claim the refund. To keep your plate number, file TD129 (kept for 12 months; HK$560 per application).
How Pak Lam quotes
Send photos and details by WhatsApp to 6799 5101. We usually reply within minutes, and the quote is valid for 7 days if the condition matches: "the price we quote is the price we pay". Quotes, inspection and towing are free, and since 1 January 2025 we have handled deregistration with no handling fee. Payment is in cash or by transfer on the spot. The certificate shows our Business Registration number, and our yard is at Chuen Lung Village, Route Twisk, Tsuen Wan.
FAQ
For general questions, see the car scrapping FAQ.
Why do quotes for the same car vary so much?
Companies have different outlets for parts and make different assumptions about condition. Some quotes leave out towing or handling fees, and some companies quote high and then cut the price on site. Send everyone the same details and compare net amounts.
With a year left on the licence, is the refund in full?
No. At 0.24% a day, 365 days returns about 87.6% of the annual fee.
Is a car that won't start worth anything?
Usually yes. It is priced on its recoverable parts and metal, though usually lower than a car that runs. The company will arrange towing.
Should I remove parts and sell them myself first?
Usually not. Missing major parts cut the quote noticeably, and taking them off yourself is risky. Never remove an EV's high-voltage battery.
What if the company cuts the price on arrival?
Ask for the reason and compare against the photos and details you sent. If the car matches, you can refuse the deal and choose another company.
How is a dealer trade-in different from scrapping?
With a trade-in, the dealer may resell or scrap the car, and the value is usually offset against the new car. Ask whether it will be transferred or dismantled. If it is transferred, your liability ends only when the transfer is complete.
This guide draws on Transport Department information and government press releases as of October 2026. Policies and fees may change. Scenarios and figures are for illustration only, and quotes depend on each vehicle's condition.