Vehicles receive a Category B (Cat B) classification when they have sustained extensive damage that renders them unfit for road use. This classification is used when the structural or electrical damage is too severe for safe repair. While the car’s shell must be scrapped and crushed, many of its components can still be salvaged and sold for profit.
The cat B classification was introduced to ensure that vehicles with potentially compromised safety are never used on the road again. Even if certain parts appear undamaged, the vehicle’s overall safety cannot be guaranteed. As a result, the shell must be crushed at a licensed Authorised Treatment Facility (ATF), where a Certificate of Destruction (CoD) will confirm that it has been disposed of according to legal requirements.
Since Cat B vehicles cannot legally be returned to the road, the opportunity for profit lies in the resale of individual parts. Certain components, such as engines, gearboxes, wheels, and interiors, may still be in good condition and hold significant value.
Typically, Cat B vehicles are sold through salvage auctions to dismantlers or garages that are interested in harvesting usable parts. Private buyers cannot purchase the entire vehicle for personal use, as it must never be returned to the road.
The insurance company usually takes possession of the vehicle once it is declared a total loss and handles its transfer to an ATF. The insurer compensates the original owner based on the vehicle’s pre-damage market value, so the financial opportunity lies with those who acquire the vehicle for parts.
If your vehicle is declared a Category B write-off by your insurer, the following steps are typically involved:
Insurance Payout: Once the vehicle is classified as a Category B write-off, the insurance company will usually provide a payout based on the vehicle’s pre-accident value. After this settlement, ownership of the vehicle will be transferred to the insurance company.
Transfer to ATF: The insurance company arranges for the vehicle to be sent to a licensed ATF for scrapping. At this point, you no longer have ownership or control over the vehicle.
Certificate of Destruction (CoD): The ATF will issue a CoD to confirm that the car has been scrapped, following all legal and environmental requirements.
If you want to retain some parts of the vehicle, such as personal belongings or detachable accessories, you will need to discuss this with your insurer before the vehicle is taken to an ATF.
Selling a Category B vehicle involves adhering to strict legal guidelines. Here’s what sellers need to know:
Category B vehicles offer an opportunity for salvaging valuable components, even if the vehicle itself cannot be returned to the road. To maximise profit, sellers should be strategic about timing, understand the market demand for parts, and ensuring compliance with all legal requirements. While the profit potential is more limited than other salvage categories, careful planning can help make the most of a Category B vehicle.
Here are a few ways to maximise your profit from your Cat B vehicle:
We try to answer all your questions to assist you in your salvage journey. If your questions aren’t answered here or on our FAQ pages, then please reach out through our social media channels and we’ll be happy to help!
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