At Take My Scrap Car, we’re often asked if it’s possible to make payment for the cars we collect in cash. Purely for convenience purposes, a lot of customers understandably would prefer cash in hand for their scrap cars. 

However, we exclusively pay for the vehicles we collect by transferring the funds into their accounts. Cash payments for scrap cars are not something we do, and there’s a very good reason for that:

It’s illegal.

In fact, it has been illegal to pay for any kind of scrap metal by way of cash for almost a decade now. It was back in 2013 that the Scrap Metal Dealers Act 1964 was revisited and revised, with the introduction of a clause prohibiting cash in hand payments.

Ever since, the only plausible way to pay for scrap cars (legally) has been with bank transfers (which includes credit and debit card payments). 

But why is it that cash in hand is considered such a bad thing for car scrapping and recycling payments? More importantly, what’s the worst that could happen if you accept a cash payment for your end of life vehicle?

Why Cash in Hand Payments Are Prohibited

The justification for prohibiting cash in hand payments is relatively straightforward. When you pay for something in cash, there’s no paper trail whatsoever.  This means zero traceability and no formal record of who paid who for what or when. 

With a lot of transactions, this isn’t particularly problematic. With car scrapping and recycling transactions, it’s a much bigger deal. 

This is due to the fact that there are very specific rules and regulations that must be followed, when scrapping and recycling end of life vehicles. The only legal way to scrap a car in the UK is to have it processed at an Authorised Treatment Facility (ATF). These are the places that are licensed to scrap and recycle cars, having fulfilled all the necessary criteria in accordance with recycling standards, environmental regulations and so on.

If a merchant was to pay you in cash for your scrap car, there’s no record or proof whatsoever where it’s headed. It could be destined to be recycled responsibly, or simply be stripped of a few parts and dumped out in the countryside. Paying by means other than cash is the only way of ensuring formal records are kept of where, when, how and by whom all scrap cars are disposed of in the UK.

Something regulators take seriously, which is why heavy fines and penalties are imposed in the event of noncompliance with the rules.

Responsible Car Scrapping and Recycling

At Take My Scrap Car, our goal is to make it as easy and rewarding as possible to do the right thing with all types of scrap vehicles.

We promise to pay the best possible price for every scrap car we collect, and we work exclusively with Authorised Treatment Facilities in our locality.

For more information or to arrange collection of your scrap car, contact a member of the team at Take My Scrap Car today.