How to Scrap a Car in Ontario
Six steps, about 45 minutes of your time, and you get paid — typically same day. Here's exactly what to do, what documents you need, and how to avoid common mistakes.
The short version
- 1Get at least two quotes from licensed Ontario yards.
- 2Find your vehicle ownership permit (green card).
- 3Remove your licence plates.
- 4Confirm towing is free and payment is at pickup.
- 5Sign over the ownership when the tow truck arrives.
- 6Cancel your insurance after pickup.
Step-by-step guide
Get your estimate and gather quotes
15 minutesUse a scrap car calculator to get a baseline estimate based on your vehicle's weight, catalytic converter, and condition. Then call at least two licensed Ontario scrap yards. A $50–$100 difference between yards in the same city is common — getting a second quote is worth the 5 minutes.
Tell each yard whether the catalytic converter is OEM (original). OEM cats from trucks and SUVs are worth $150–$200 — yards will pay more when you know this upfront.
Locate your vehicle ownership (permit)
5 minutesIn Ontario, the vehicle ownership permit (the green card) is required to transfer the car to a licensed scrap yard. You'll sign Part 2 (the transfer section) over to the yard. If you can't find your ownership, you can get a replacement from any ServiceOntario location for $32.
You do NOT need to go to ServiceOntario to complete the transfer — the yard handles the registration change on their end. You just need to sign the permit over.
Remove your licence plates
2 minutesIn Ontario, licence plates belong to the driver, not the car. Remove your plates before the yard picks up the vehicle. You can transfer them to your next car, or return them to ServiceOntario and get a refund on any unused registration time.
Do not leave plates on the car. If the car is moved with your plates, you could be held liable for any violations or toll charges.
Cancel your insurance
10 minutesCall your insurance provider to cancel your policy once the pickup is confirmed. In Ontario, you are entitled to a refund on the unused portion of your premium. If you are replacing the vehicle, ask about transferring the coverage instead — this avoids a lapse in your driving history.
Cancel AFTER pickup is confirmed and scheduled, not before. You need insurance until the car is transferred.
Confirm towing and payment before pickup day
5 minutesCall the yard the day before pickup to confirm: (1) the agreed price, (2) that towing is included at no charge, and (3) how you'll be paid — cash or e-transfer. Most Ontario yards pay at pickup. Do not accept a yard that wants to pay you after the car is gone.
Ask specifically: "Is the tow included in the price you quoted?" Some yards quote one number then subtract $75–$150 for the tow. Confirm this before pickup day.
Sign over the ownership at pickup
5 minutesWhen the tow truck arrives, sign Part 2 of the vehicle ownership permit and hand it to the driver. They'll give you a receipt. Keep this receipt — it confirms the car was legally transferred and protects you from any future liability related to that vehicle.
Write "SOLD AS SCRAP" and the date on the ownership before signing. This is not legally required in Ontario but provides an extra layer of documentation.
Documents checklist
What to have ready before the tow truck arrives.
| Document | Required |
|---|---|
| Vehicle ownership permit (green card) | Required |
| Government-issued ID | Required |
| Licence plates (removed) | Required |
| Lien release (if applicable) | Optional |
| Keys | Optional |
Ontario regulations
Ontario scrap yards must be licensed under the Environmental Protection Act and the Highway Traffic Act. Licensed yards are required to depollute vehicles before crushing — draining all fluids and removing the battery, catalytic converter, and other hazardous components. Always use a licensed yard. Unlicensed buyers typically pay less and give you no paper trail.
Vehicle ownership transfers are managed by the Ministry of Transportation via ServiceOntario.
Frequently asked questions
Can I scrap a car without the ownership permit in Ontario?
Licensed Ontario yards are legally required to verify ownership before accepting a vehicle. Without the permit, most yards will decline the vehicle or offer a lower price and require extra verification. If you've lost the permit, replace it at ServiceOntario for $32 — it's the cleanest solution.
Do I need to notify the MTO when I scrap a car?
No separate notification is needed. When the licensed yard processes the vehicle, they submit the transfer to the Ministry of Transportation (MTO). The registration is cancelled automatically once the yard registers it as scrap. Keep your receipt as proof.
Can I scrap a car that still has a loan on it?
Yes, but you must pay off the lien first or get a lien release from your lender. A scrap yard cannot legally take a vehicle with an outstanding lien without the lender's consent. Contact your lender before booking pickup — most will provide a lien release once the balance is cleared.
What happens to my car after it's scrapped?
Licensed Ontario scrap yards are required to depollute vehicles before crushing — draining all fluids (oil, coolant, brake fluid, refrigerant) and removing the battery and catalytic converter. The remaining steel is crushed and sent to a steel mill for recycling. Ontario regulations under the Environmental Protection Act govern this process.
How long does scrap car pickup take in Ontario?
Most licensed yards in Toronto, Hamilton, Ottawa, and other major Ontario cities can arrange pickup within 24–48 hours of agreeing on a price. Smaller cities may take 2–3 business days. Same-day pickup is available in some markets.
What's the best day to scrap a car to get the best price?
Steel prices don't change by day of week, but calling on Monday or Tuesday — when yards are fresh off a weekly price update — tends to get more accurate quotes. Avoid calling on Fridays when yards are busier and less focused on negotiating.
Can a scrap yard keep my car without paying?
No. Payment must be made at the time of pickup — either cash or e-transfer. Never release the vehicle or sign over the ownership before receiving payment. If a yard delays payment, cancel the arrangement and call another yard.
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