What Happens When You Scrap a Car in Canada?
From the moment you sign over the ownership to the day that steel becomes something new — here's exactly what happens to your car after it's scrapped.
Quick answer
When you scrap a car in Canada, the yard drains all fluids, removes the battery and catalytic converter, then crushes and shreds the body. The shredded steel goes to a mill to become new steel. On average, 85% of a car's weight is recycled. You receive a receipt confirming legal transfer, which cancels the registration in your name.
The 6 stages of scrapping a car
From pickup to the steel mill — in order.
You sign over ownership and get paid
At pickup, you sign the vehicle ownership permit (or equivalent provincial document) over to the licensed yard. The tow truck driver gives you a receipt. You get paid on the spot — cash or e-transfer. This receipt is your proof the car was legally transferred and protects you from any future liability related to that vehicle.
The yard assesses and catalogs the vehicle
Back at the yard, staff log the vehicle VIN, check for usable parts — engines, transmissions, doors, and glass from popular models — and assess catalytic converter type. Parts in demand go to the yard's used parts inventory or are sold to auto wreckers. The shell is set aside for processing.
Depollution — all hazardous fluids are removed
Before any crushing, licensed Canadian yards are legally required to drain all hazardous fluids: engine oil, transmission fluid, brake fluid, coolant, power steering fluid, and refrigerant (AC). The battery is removed for lead-acid recycling. This step is regulated under provincial environmental protection legislation and is included at no extra cost to you.
The catalytic converter is removed and processed
The catalytic converter is cut off and sent to a precious metals refiner. The ceramic substrate inside contains platinum, palladium, and rhodium — these are recovered and reused in new catalytic converters, jewelry, and electronics. OEM converters from trucks and SUVs contain significantly more PGMs than aftermarket replacements, which is why your cat type affects your payout.
The body is crushed and shredded
The stripped vehicle shell is fed into a hydraulic car crusher, which flattens it in seconds. Flattened cars are stacked and transported to an industrial metal shredder — a machine that can tear apart an entire car body in under 30 seconds. The shredder produces fist-sized chunks of mixed metal ready for sorting.
Metals are sorted and sent to mills
After shredding, an automated separation process sorts ferrous metals (steel, iron) from non-ferrous metals (aluminum, copper). Ferrous metal goes to steel mills where it's melted and cast into new steel. Non-ferrous metals go to smelters. On average, 85% of a car's weight is recycled. The remaining 15% — plastic, foam, glass — goes to landfill as "auto shredder residue."
Certificate of destruction and registration cancellation
Licensed yards submit the VIN to the provincial ministry — MTO in Ontario, SAAQ in Quebec, ICBC in BC — and the registration is cancelled in your name. In some provinces you receive a Certificate of Destruction. This protects you from any liability related to that vehicle after it leaves your hands. The receipt you get at pickup is your immediate proof of transfer; the ministry update typically follows within 1–2 weeks.
Environmental impact of car recycling
Steel is the most recycled material in North America — over 80 million tonnes per year. Scrapping your car contributes directly to that cycle rather than letting a vehicle deteriorate in a field and leach oil, coolant, and brake fluid into the surrounding soil.
~2,500 kg
iron ore saved per car recycled
~1,400 kg
coal saved per car recycled
75% less
energy vs. producing steel from raw ore
85%
of a car's weight is recycled on average
Frequently asked questions
Related
How to Scrap a Car in Ontario →
Step-by-step with required documents
Can You Scrap a Car That Doesn't Run? →
Non-running cars go through the same process
Catalytic Converter Scrap Prices →
What your cat is worth before it goes to the refiner
How Much Is My Scrap Car Worth? →
Free instant estimate based on current prices
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