What Happens To Car Number Plates When Scrapped?

When a car is scrapped, its number plate remains; there's a specific process for handling it to ensure proper records and regulations are maintained.

Depending on the country, car owners may be required to return the number plate to the relevant vehicle registration authority or notify them of the car's disposal. 

In some cases, owners can retain a personalised plate for future use or transfer it to another vehicle. The process helps prevent fraudulent activities by updating the vehicle's status in government records.

Please read this blog to learn more about what happens to car number plates and how to handle them when scraping a vehicle.

Let’s get straight to the point

When a car is scrapped, there are specific guidelines regarding handling its number plate to ensure regulatory compliance and prevent fraud. Car owners may need to return the plates to vehicle authorities, notify them of the car's disposal, or even retain or transfer personalised plates to another vehicle if allowed. 

Selling the car to a scrap yard requires ownership transfer, and the yard typically removes the plates to prevent illegal reuse.

In Australia, regulations vary by state:

• NSW and Victoria: Plates must be returned, and non-compliance can result in penalties of up to $2,200 in NSW.
• Queensland: Owners remove plates before scrapping; these can be kept or transferred.
• Selling Plates: Some states, like Queensland and Western Australia, permit selling old plates to licensed dealers, often with restrictions.

If retaining the registration number or a personalised plate, owners must complete the necessary paperwork, which can take up to six weeks. Non-compliance can lead to fines, particularly in NSW and Victoria, so checking state-specific guidelines is essential.

1. Selling A Car With Number Plates To A Scrap Yard

If selling a car directly to a scrap yard:

• Ownership Transfer: The car owner must sign over the title to the scrap yard.
• Plate Removal by the Scrap Yard: The yard will remove and mutilate the plates to prevent reuse, safeguarding against future legal complications.

2. Selling Licence Plates To A Dealer

In some cases, owners may remove plates and sell them independently:

• Legality of Removing Plates: Removing plates before scrapping is legal in most states, though some areas require the plates to accompany the car to the yard.
• Dealer Resale: Removed plates can often be sold to dealers specialising in licence plate resale, catering to collectors or people seeking custom plates.

3. Removing The Plate Number Before Selling To A Scrap Yard

Vehicle owners in Australia may remove plates themselves before scrapping their cars:

• Responsibility: If owners remove the plates, they ensure they're permanently destroyed to prevent illegal reuse.

4. Salvaging A Licence Plate: Is It Possible?

Some people attempt to keep their vehicle's plates for personal or collector's use:

• Retaining the Plate: While keeping the plate is possible, it's generally discouraged due to potential legal and logistical issues.
• Collector Value: Some plates have collectible value, yet selling them requires ensuring they will be used properly.

5. Impact On Title Information

The title and registration details can be affected based on how plates are handled:

• Returning the Plate: In some areas, the owner must return the plate to the Department of Motor Vehicles (DMV).
• Transferring Plates: Certain states permit the transfer of plates to a different vehicle, though each state's requirements vary.

6. Penalties For Failing To Return Licence Plates In NSW

New South Wales enforces specific penalties for not returning plates when scrapping a car:

• Legal Obligation: In NSW, it's illegal to sell, donate, or dispose of plates without returning them to a scrapyard or the Department of Transport (DOT).
• Fine Structure: Failure to return plates can result in penalties of up to $2,200. However, a 50% discount applies if payment is made within 28 days.
• Court Proceedings: Failing to pay or challenging the fine may result in court proceedings, where fines can increase to $5,000.

7. Returning Number Plates In Victoria

In Victoria, the process for handling plates when scrapping a vehicle is also well-regulated:

• Return to Transport Department: Plates must be turned in to the transportation department or an authorised scrap yard.
• Consequences of Non-Compliance: Similar to NSW, penalties apply for failing to return plates, with fines reaching $2,208.

8. Licence Plate Regulations In Queensland

Queensland residents must remove plates before scrapping a car:

• Ownership of Plates: Removed plates can be kept or transferred to another vehicle.
• Re-Registration: If keeping a plate, it needs to be re-registered for use on another vehicle.

9. Licence Plate Sale Regulations Across Australian States

Certain states allow selling old plates under specific conditions:

• Queensland and NSW: Residents can sell their old plates to registered dealers, often receiving cash.
• Western Australia: Plates can be sold to licensed dealers if the owner has had the plate for at least three months.

Always verify compliance with local authorities before attempting to sell a plate.

10. Retaining A Vehicle's Registration Number

In some cases, an owner may keep a vehicle's registration number:

• Removing Plates First: Plates must be removed before sending the vehicle to the scrapyard.
• Transfer Process: Contacting the state's Department of Transportation is necessary to ensure plate retention or transfer compliance.
• 12-Month Ownership Requirement: Keeping a number is often only allowed if the owner has had the registration for at least 12 months.

11. Timeline For Keeping Licence Plates

Keeping a licence plate can involve a lengthy process:

• Submission of Paperwork: The paperwork must be completed before bringing the vehicle to the scrap yard.
• Timeframe: Once all forms are submitted, finalising the retention or transfer of the plate can take up to six weeks.

12. Handling Private Licence Plates When A Car Is Scrapped

Private or personalised plates have their specific rules:

• Unique Usage: Personalised plates can only be used by the original owner and aren't transferrable once scrapped.
• Removal Requirement: Owners must remove their personalised plates before taking a car to the scrap yard.

A local scrap yard or the Department of Transportation can assist in understanding the steps for private plate disposal.

Conclusion

Disposing of licence plates when scrapping a vehicle in Australia is governed by various laws and guidelines:

• Variety of Options: Options for plate disposal include returning to a dealer, removing for personal retention, or following government guidelines on scrapping.
• Fines and Penalties: Legal consequences exist for failing to return plates, especially in NSW and Victoria.
• Procedures by State: States have unique procedures, such as allowing the sale of old plates to licensed dealers in certain jurisdictions.

Carefully following local regulations ensures a smooth process when scrapping a vehicle and managing its licence plates. Each state may have unique rules, so it's best to consult local authorities for specific guidance.