Many people look online for ways to scrap their car for cash, but did you know there were some significant changes to the law in 2013 which affects how you can accept payment for your vehicle? It’s a good idea to understand more about what you can and can’t do so that you avoid hefty fines and car scrap scams. Here’s everything you need to know.
How to Pay for Your Vehicle to Be Scrapped
In 2013, changes were made to the Scrap Metal Dealers Act 1964, making it clearer how car scrap dealers can pay for your vehicle. It’s now illegal for them to pay for any type of scrap metal (including vehicles) in cash, and payment must be completed via an electronic transfer or cheque. The aim of this change in the law was to reduce the level of metal theft.
However, there are still some risks with accepting cheques, so the safest method is via bank transfer (including debit or credit card payments), allowing you to see the money has reached your bank account quickly and securely.
Importance of Using Licensed Car Scrap Dealers
You should only sell your car for scrap if you use a reputable dealer with the license to do so. This ensures your vehicle will be correctly and safely disposed of rather than ending up back on the road or scrapped in a way that’s harmful to the environment. Always check the dealer you’re hiring is part of an Authorised Treatment Facility (ATF), proving they’re licensed to conduct car scrapping operations.
By avoiding cash payments, it also ensures you have a clear record of who your vehicle has been sold to so that you can prove to the DVLA that you are no longer the liable owner. Otherwise, if your car went onto be used in illegal activities, it could be you who receives a large fine from the DVLA.
When you use an experienced car scrap dealer, they’ll provide you with a Certificate of Destruction for your records, and you should give their details to the DVLA when informing them of the sale.
Getting the Best Deal for Your Car
If you want to make money scrapping your car, there are lots of ways you can make sure you secure the best price. A dealer who doesn’t have the right license will often offer a better price because they actually plan to sell your car on illegally or you may get hit with hidden costs at the point of sale. You should also choose a company who comes out to you to collect the vehicle, saving you the time and effort of trying to drop the vehicle off elsewhere.