Recycling Wagons and Locomotives

Tier 2 trains are great but replacing Tier 1 for Tier 2 feels like a waste of resources if Tier 1 are already doing the job. Let us recycle wagons and locomotives not just destroy or disappearing if we dont have enough storage for them. Getting recyclables or some % of the originals parts would be great.

Is that not already the case? If you hit the 14 limit in the depot, units get scrapped into parts. You can also do this manually with a bin button near the train units in the depot.
Or am I wrong?