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Why can I not get paid in cash?

“I want to sell my scrap my car for cash” is a common request from Car.co.uk customers – but few people realise that doing so would be against the law. 

Here, we’ll explain a little about the law that surrounds scrap car collections, the payment methods our scrap partners use, and why scrapping your old car for cash might mean you get a second-best price.

The Scrap Metal Dealers Act 2013

In 2013, the government revised the law that surrounds scrap metal collections – by creating the Scrap Metal Dealers Act. The act outlines a series of conditions that scrap dealers must abide by to ensure they keep their licence to trade as a scrap metal dealer.

Part of the Scrap Metal Dealers act details how payment can be made for metal that a dealer buys. Since scrap yards are considered scrap metal dealers and scrap cars are considered scrap metal – these rules apply when payment is made for your vehicle.

Section 12 of the act states clearly that a scrap metal dealer must not pay for scrap metal by any means except cheque or electronic transfer of funds. Doing so would mean a potential fine of up to £5,000 – and repeat offences could mean having their scrap metal licence removed.

Do scrap yards ever deal with cash?

While the scrap yards that are part of the Car.co.uk network do not handle cash – that’s not to say all scrap yards or traders follow these rules. We know it might be tempting to use a service that will pick up scrap cars for cash – but it could leave you exposed to legal issues.

Following the Scrap Metal Dealers Act is an important part of becoming an ATF – an Authorised Treatment Facility that handles scrap cars in line with government and environment agency guidelines. Only ATFs can begin the process that will see your vehicle officially dismantled and removed from the DVLA registration system – so if you’re dealing with a scrap yard who doesn’t follow the law, it could mean you’re passing your car to someone who will not handle it correctly.

If your car is not processed correctly – you may remain liable for any legal proceedings relating to the car after it’s collected. If you want to be sure you’re protected and that your car is disposed of correctly, using Car.co.uk’s quick and simple car scrapping service will ensure this is the case. What’s more – you’ll always be paid promptly after collection – in a way that is fully legal and keeps you safe. 

Are you selling to a scrap yard?

You may find ‘scrap yards’ who offer scrap car removal for cash – but beware, in many cases, this situation is not quite as it seems. 

In some instances, car traders will pose as scrap dealers and pay cash for your car. However, they will simply be planning to sell your scrap car to an ATF and get a better price. Again, using our service will mean you always get the best price from a genuine scrap yard.

Other related FAQs

Looking for more related content to this? We’ve picked a selection of related topics that you may find helpful

Yes, our network of dismantlers can scrap vehicles that are registered in other countries. You’ll need to inform the governing body in the country that the car is from; usually by sending them the completed registration document.

Don’t worry – our scrap partners aren’t concerned about the condition of your car. Whether your vehicle is roadworthy – or badly damaged and in need of disposal; we’ll help you maximise the price you receive.

When a car is no longer roadworthy and needs to be scrapped, there’s probably a scrap dealer near you who will collect the car and pay you money for this. It’s easy to find a nearby scrapyard.

When scrapping your car, you must inform the DVLA. You’ll need your logbook to pass onto the ATF (Authorised Treatment Facility). Afterwards, you’ll be given a Certificate of Destruction (CoD).

Yes. Vehicle tax is no longer transferable from owner to owner – so, if you’re scrapping your car, we recommend that you get in touch with the DVLA soon after collection to reclaim any tax that may be owed.

The answer unfortunately is no. Once your MOT has expired you must get it renewed immediately. If you’re found to be driving without a valid MOT certificate, you could be fined up to £1,000.

ATF stands for ‘Authorised Treatment Facility’ - another name for a scrap yard, breaker’s yard or vehicle dismantler that meets with strict government guidelines relating to the handling processing of End of Live vehicles.

If you’re entitled to any unused road tax when you scrap your car, you should get in touch with the DVLA to reclaim it. Since tax discs were phased out, this can no longer be done at a post office – so you’ll need to contact the DVLA directly, either on the phone, by post, or using their website.

When a car is no longer roadworthy, it still has some value. An Authorised Treatment Facility (ATF) will pay you the scrap value of your car, which could be well over a hundred pounds, depending on the model.

To scrap your car legally, the three absolute musts are you must use an Authorised Treatment Facility (ATF), ensure your logbook (V5 certificate) is completed correctly, and, if the vehicle’s to be destroyed, obtain a CoD (Certificate of Destruction).