That old clunker in your driveway is taking up space. Your wife has been urging you to get rid of it and you’ve finally decided it is not worth the time and expense of repairs to get it running again. You can send that clunker to the junk yard, by taking the following steps.
1. Pay off your loan. If you still owe money to a lender for your clunker, you’ll need to pay off your clunker first. Once your car is paid off, you’ll then have the title. No junk yard will take your car unless you possess a clear title.
2. Verify the title. Your clunker may not have lien on it, but are you holding the title? Look through your important documents to find your title. If you cannot find it, then you’ll need to contact your state’s Department of Motor Vehicles for assistance. Likely, you’ll have to demonstrate proof of ownership and pay a fee to secure a copy of your title.
3. Contact local salvage yards. Most any clunker whether it is running or not is worth something. If your car is still running, then it is worth more than one that is not. Search online for local salvage yards and make contact. Get a price for your car and learn how much it will cost you to have it towed or driven away.
4. Choose a yard. You should have two or three offers for your car. Determine which offer you will accept and make arrangements to dispose of your car. You’ll need to sign over the lien to the junk yard and receive payment for your vehicle. If your vehicle is worthless, the salvage company may tow it away for free.
5. Remove the license plates and registration. You’ll need to remove personal and business effects from your car before it is towed away. Remove documentation from the glove compartment except for the owner’s manual. You’ll want to take its registration, insurance information and license plates with you. Check the various storage compartments and the trunk for additional personal items. Return the license plates to the DMV.
Your state may have one or more additional rules in place as you send your clunker to the junk yard. Find out from your DMV the proper way to dispose of your car. You may need to sign a lien release too. Once the car has been signed over, contact your insurance company to drop coverage.