top of page

The Scrap Car Dilemma: An Unseen Journey for End-of-Life Vehicles

Original publication : https://autorecyclingworld.com/ - October 24, 2024

Mathieu Millet, President of EvaluCar France, a leader in total loss vehicle management, discusses the intricacies of the global vehicle recycling market. He explores the economic, safety, and environmental implications of exporting irreparable vehicles, highlighting the need for better regulations and transparency in handling end-of-life vehicles.

In the automotive world, the phrase “good for the scrapyard” is often used to signify a car’s end. However, this fate is not always as straightforward as it seems. In France, for example, only half of the vehicles designated as irreparable wrecks make it to the scrapyard. The others embark on a far less predictable journey—often crossing borders to be repaired and resold abroad before sometimes finding their way back onto the French market.


The Global Loop of “Wrecks”


When a vehicle in France is deemed economically or technically irreparable, insurance companies typically buy it back. These cars are then sold to certified recyclers, who are expected to deconstruct and recycle them. However, deconstruction only occurs for half of these vehicles. The remaining cars are exported, where they benefit from cheaper labor and less stringent repair regulations. What was once considered irreparable is given a second life, albeit with questionable safety standards.


The situation takes a concerning turn when these once-written-off cars return to the French market. After crossing borders and undergoing repairs abroad, these vehicles are often re-registered with no trace of their previous classification as wrecks. The result? Cars that were once considered unsafe can be sold with a seemingly clean bill of health, unbeknownst to the buyer.


While some private services exist to cross-reference vehicle histories across borders, the system is far from foolproof. As it stands, consumers may unknowingly purchase cars that were once deemed too unsafe to drive.


Two Major Concerns


This practice raises two key issues:

  • Safety Risks: Cars repaired under uncontrolled standards pose potential dangers on the road. Without thorough oversight, vehicles could have hidden defects, risking the safety of drivers and passengers alike.

  • Environmental Impact: The exportation of these vehicles instead of their deconstruction undermines efforts to promote a circular economy. Recycling a car conserves valuable materials and reduces waste, but exporting and repairing them outside of controlled systems does little to support environmental goals.


The Economic Reality


Why does this happen? Simply put, it’s about profitability. The high cost of labor in France, the logistical challenges of deconstruction, and low demand for used car parts make recycling less attractive. Exporting damaged cars for repair abroad is often a more lucrative option.


Even insurers, who play a central role in determining the fate of these vehicles, are influenced by market pressures. They have two main options for reselling damaged cars: the “agreement system,” which sets a resale price based on a percentage of the vehicle’s residual value, or at auctions open only to certified professionals. At auction, vehicles are often sold at higher prices, driven by demand from international buyers, further discouraging recycling in favor of export.


A Path to Reform?


However, the landscape is changing. New regulations and standards offer hope for a more sustainable and transparent system. The Extended Producer Responsibility (EPR) framework regulates recycling rates for end-of-life vehicles, while the Corporate Sustainability Reporting Directive (CSRD) mandates that insurers account for the ecological impact of their operations, including the fate of damaged vehicles. Additionally, ongoing reforms to the vehicle registration system (SIV) could close the loophole that allows exported cars to return without their repair history.


In the long term, these reforms could foster a more transparent, safer, and environmentally conscious market for end-of-life vehicles. But for now, the journey from wreck to road remains a complex and opaque process that needs urgent attention.

bottom of page