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What are the legal requirements if I want to sell a car as scrap and what would be different if the car was unregistered and unwarranted?

Graeme

From the "Ask Jack" archives - 10 February 2010

If the car was going to be scrapped, you need to hand the numbers plates into a NZTA agent (vehicle testing station or AA centre), and complete a form called "Application to Deregister a Motor Vehicle" (MR15).

This would officially remove the vehicle from the NZTA (NZ Transport Agency) data base. If the registration was current at the time the plates were handed in, a refund of the unused period would be posted to the registered owner.

If the vehicle is unregistered you still need to handover the plates however, you may be asked to pay any outstanding fees dating back to when the car was registered last, or at least one full year's registration.

The authorities will always make an assumption that a car on their data base is able to be driven and registration fees apply unless they are told otherwise.

Registration can be officially placed on "hold" when a car is in storage, under long term repair or a special interest vehicle which is only used on special occasions.

This means the owner only pays registration for the period the car is used on the road.

So, if you handover the plates you run the risk of having to pay any outstanding registration fees.

We do know some owners simply remove the plates and scrap the car, end of story. The car will however always remain in the "system" as an unregistered vehicle.

Whether this creates any problems further down the track who knows. Certainly the plates could never be used again. If they were hanging in the garage for example and subsequently stolen and reused, then it could create major problems for the official owner of the plates.

The fact the car is unwarranted is irrelevant.

When a car is given over for scrap, vehicle details will be logged which is a police requirement only.