How to Scrap an Electric Car in Canada? [In 2026]
As of now, electric vehicles (EVs) have become more popular and in demand across Canada and the world. However, with the passage of time, these vehicles may lose battery capacity, the cost of repairs may exceed their actual value, or the models may reach the end of their lifespans. In that case, it’s recommended by experts to scrap your electric vehicle, whether it is old, damaged, or not worth repairing. However, scrapping an EV isn’t exactly the same as scrapping a traditional car because some more considerations are involved.
In this detailed guide, we will outline the process for scrapping an EV in Canada, including legal requirements.
When to Scrap an Electric Car?
An electric car is usually retired permanently when repairing it no longer makes economic sense, it fails major safety inspections, or it is simply no longer needed. The following are the most common situations in which it is recommended to scrap an electric vehicle:
- If battery health drops below 50-60%, it means battery replacement can be expensive (30-50% of car value).
- If the car is severely damaged due to an accident, flood, or fire, and its repair becomes costly.
- The repair cost of the vehicle exceeds its real value in the market. This issue is common with older EV models because their resale prices are declining more rapidly.
- If you find the car becomes unsafe or impractical for daily use, or if the vehicle has obsolete technology.
- In case you have an unwanted vehicle lying at your place, and want to remove it.
- When an insurance company declares an electric car a total loss, it means that its repair cost exceeds 60-70% of the car’s insured market value.
How to Scrap an Electric Car?
If you’re wondering how to scrap an electric car in Canada, the following is a simple guide to help you through the process.
1. Assess Whether Your EV Should Be Scrapped
Before just jumping to scrapping your electric vehicle, it’s recommended to assess its condition and the value it holds, so that it can be decided whether it should be scrapped, donated, or sold in the market.
2. Find a Certified and Reputable Service
Not every scrap car removal service or auto scrapyard is equipped to handle electric vehicles properly because modern EVs require special handling. So it’s recommended to choose the facility that meets the following requirements:
- Certified auto recyclers that mention EV processing
- Ficility with a good reputation in the area
- A company affiliated with the Automotive Recyclers of Canada (ARC)
- Local services that offer eco-friendly disposal
A good scrapyard or dealer can offer:
- Free towing or transportation
- Quick scrapping process
- Free paperwork
- Fair and Instant payment transfer
To get a quote, contact the service providers in your area and provide all details about your vehicle, such as condition, make, model, year, and address. Compare the offers you got and select the offer that seems best for you.
Many EV manufacturers, such as Tesla, Nissan, GM, and others, also have battery recycling programs, so contact them to see if they can handle it according to your goals.
3. Prepare Ownership Documents
In the third stage, you will need to prepare a few documents as they will be required to complete the process legally. The following are the documents that may be required:
- Vehicle registration
- Valid government-issued ID (e.g, ID card or driving licence)
- A bill of sale may be required (In some provinces)
If your EV is financed or leased, you must settle the loan or lease before scrapping it.
4. Start the Transportation Process
Most scrap services offer free towing across Canada, especially for end-of-life vehicles. If you are from a rural area, you may not receive free transportation and will have to compromise your payments, as service providers may deduct from the final payout. Otherwise, you will have to handle transportation on your own.
While scrapping a car, always look for a service offering free transportation or towing and pay a fair price, because it’s safer and economical to let professionals handle transportation.
5. Complete the Sale and Get Paid
Once the EV is picked up for processing, it receives the payment (depending on the vehicle’s condition). You may be paid either cash, cheque, or sometimes direct deposit, depending on the company. It’s recommended to receive a receipt for the transaction as proof of sale.
6. Deregister the Vehicle
You also need to get an important receipt, which is called a certificate of destruction, and submit the certificate or bill of sale to your provincial transportation authority (MTO, SAAQ, ICBC, etc.) to remove the vehicle from your name.
7. Notify Your Insurance Company
At the final step, you must notify your insurance provider to cancel the vehicle’s policy if you have one. This could prevent unnecessary charges or open the door to credits/refunds.
Don’t Want to Scrap?
If you don’t want to scrap your car for obvious reasons, you still have several good alternatives, depending on the car’s condition and your goal (whether it’s money, storage, or reuse). Here are the best few options:
- If the car still runs or needs minor repairs, then sell the vehicle privately to auto dealers or list it on online marketplaces like Kijiji, Facebook Marketplace, or AutoTrader.
- If you are planning to buy a new car and sell the current one, a trade-in is the best option, as many dealers accept non-running or older vehicles.
- You can also part it out by selling the parts individually if the car has valuable parts like the engine, rims, battery, and catalytic converter.
- If you want to get rid of a car in any way while supporting some good causes, you can opt for donating the vehicle to charities and receive tax credits.
Final Thoughts
Scrapping an EV in Canada is a little more specialized than scrapping a gasoline-powered vehicle. But by following the given steps, you can scrap your EV responsibly and even earn a good cash back.
Schmidt’s Auto Recycling will help you get rid of your scrap electric car across Ontario, Canada. You will enjoy legal, smooth and stress-free service from paperwork support to towing, all will be handled at no extra cost or hidden deduction. Call us or fill out the online quote form to scrap your electric car at the price you actually deserve.
