Is it Possible to Scrap a Car on Finance?

What “Car on Finance” Means

In order to understand this better, let’s first look into what a car on finance means:
Leasing or contractual financing means that the ownership of the vehicle is with the lender. In the case of a lease, your car will go back to the lender after a predetermined number of years. Financing means you pay a certain amount to the lender bi-weekly or monthly.

The general rule of thumb is that you don’t actually own the car you’re paying for — at least, not until you’ve paid everything off.

Can You Scrap It?

You should have ownership of the vehicle you want to scrap. If your car is too damaged or needs too many repairs — you should pay off the remaining amount towards the car. Once you have ownership of the vehicle, you can scrap it.

Most Common Questions

How do I dispose of old license plates in Ontario?

What paperwork do I need to scrap a car?

Other questions