"Lafayette" was stricken from the Naval Vessel Register on 11 October 1945 without having ever sailed under the U.S. flag. President Harry Truman authorized her disposal in an Executive Order on 8 September 1946, and she was sold as scrap on 3 October 1946 to Lipsett, Inc., an American salvage company based in New York City, for US$161,680 (approx. $1,997,000 in 2017 value). After neither the Navy nor French Line offered a plan to salvage her, Yourkevitch, the ship's original designer, proposed to cut the ship down and restore her as a mid-sized liner. This plan also failed to draw backing. She was cut up for scrap beginning in October 1946 at Port Newark, New Jersey, and completely scrapped by 31 December 1948.