Should You Fix or Scrap Your Old Car? What to Consider Before Deciding

Wondering if it’s time to retire your old car? You’re not alone—each year, Australians send about 850,000 vehicles to the scrapyard, creating around 1.36 million tonnes of waste. While the industry recycles roughly 70% of a car's materials, a significant portion still ends up in landfills. Before you add to that number, here are some factors to weigh up when deciding whether to fix or scrap your car.

1. Is There Financial Help for Scrapping Cars?

Unlike the EU, UK, and Japan, where motorists can receive rebates for scrapping old cars, Australia doesn’t currently offer financial incentives for scrapping. However, a potential program is being discussed for 2026 that would give Australians a rebate when they replace an old vehicle with a more eco-friendly one. This proposed End of Life Vehicle Scheme (ELV) aims to encourage drivers to upgrade to lower-emission cars, though details are still being ironed out.

2. How Much Money Can You Expect from Scrapping?

Scrap prices vary but typically range from $200 to $700 per vehicle, with the average payout sitting around $527 in Australia. The price depends on factors like the car’s weight, materials, and the number of catalytic converters (which contain recyclable metals and can be worth up to $600 each). Generally, newer, repairable vehicles or cars with valuable parts can fetch more than vehicles heading straight to the crusher.

3. When to Consider Scrapping vs. Selling

Selling Your Vehicle

If you have the time, listing your car on an online marketplace could yield a better return than scrapping. Many buyers look for affordable cars they can repair, use for parts, or flip. Even older cars can fetch more than scrap value if they’re complete and have registration. By selling, you can extend the car’s life and prevent it from contributing to landfill waste.

Scrapping Your Vehicle

Scrapping might be the easiest option if your car requires significant repairs or lacks registration. Many scrapyards offer cash and convenient pick-up services. If the car’s repair costs exceed its market value, scrapping can be a quick way to get some money back with minimal hassle.

4. Repair Costs vs. Replacement Costs

Sometimes, a costly repair can push an older car beyond practical investment. For example, issues like a blown head gasket or slipping clutch can cost thousands in labor alone, especially for vehicles that require frequent upkeep. Compare the cost of repairs with the price of buying a replacement. While fixing an old car for $1,000 might not make sense if it’s worth only $2,000–$3,000, it may still be cheaper than purchasing a new car outright.

5. Is Scrapping Eco-Friendly?

Although it may seem eco-conscious to trade in an old car for a more fuel-efficient one, scrapping also has environmental downsides. Disposal processes contribute about 5% of a car’s total lifetime emissions, and only around 70% of materials are recycled, with the remaining 30% ending up in landfill. Additionally, manufacturing a new vehicle releases significant emissions—around 5.6 tonnes for a regular passenger car and up to 8.8 tonnes for an electric vehicle.

To minimize environmental impact, consider selling your old car to someone who can keep it running and opt for a gently used replacement instead of a brand-new model. This approach reduces landfill waste and the emissions associated with new car production.

Final Thoughts

Deciding whether to fix or scrap your car involves balancing financial, practical, and environmental considerations. If repairs are minor, selling can help keep your vehicle out of the landfill. However, if the costs are too high or the vehicle is beyond repair, scrapping might be the best choice. Whatever you decide, weighing all the factors can help you make the most sustainable and financially sound decision.