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  • FIRST POST
    • Dawn248
    • By Dawn248 24th Mar 17, 12:08 PM
    • 97Posts
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    Dawn248
    Is cash for Scrap car ever Legal?
    • #1
    • 24th Mar 17, 12:08 PM
    Is cash for Scrap car ever Legal? 24th Mar 17 at 12:08 PM
    I've called a firm who are listed as authorised to take my car for scrap. They will give me a receipt on the day and send on the certificate for the DVLA once it's scrapped.
    They say because it still has an MOT they can pay me cash. Is this legal?
Page 1
    • tedted
    • By tedted 24th Mar 17, 12:13 PM
    • 124 Posts
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    tedted
    • #2
    • 24th Mar 17, 12:13 PM
    • #2
    • 24th Mar 17, 12:13 PM
    no either a cheque or bank transfer when you provide evidence that the car is yours to scrap
    • Inner Zone
    • By Inner Zone 24th Mar 17, 12:19 PM
    • 1,749 Posts
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    Inner Zone
    • #3
    • 24th Mar 17, 12:19 PM
    • #3
    • 24th Mar 17, 12:19 PM
    I've called a firm who are listed as authorised to take my car for scrap. They will give me a receipt on the day and send on the certificate for the DVLA once it's scrapped.
    They say because it still has an MOT they can pay me cash. Is this legal?
    Originally posted by Dawn248
    Bit puzzled why a scrap car needs an MOT. Are they planning to sell it on instead of scrapping it?

    As long are they are licensed to dispose of the car, the MOT should be irrelevant. But I would inform the DVLA as well if you are unsure just to cover yourself. And as above get a cheque or bank transfer. I know when I sold some scrap metal recently I was issued with a cheque after producing ID for name and address.
    Last edited by Inner Zone; 24-03-2017 at 12:22 PM.
    • foxy-stoat
    • By foxy-stoat 24th Mar 17, 12:54 PM
    • 1,561 Posts
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    foxy-stoat
    • #4
    • 24th Mar 17, 12:54 PM
    • #4
    • 24th Mar 17, 12:54 PM
    Bit puzzled why a scrap car needs an MOT. Are they planning to sell it on instead of scrapping it?

    As long are they are licensed to dispose of the car, the MOT should be irrelevant. But I would inform the DVLA as well if you are unsure just to cover yourself. And as above get a cheque or bank transfer. I know when I sold some scrap metal recently I was issued with a cheque after producing ID for name and address.
    Originally posted by Inner Zone

    Licensed scrap yards cannot pay cash for scrap metal - some do but they shouldn't.


    If your car has an MOT then they can legitimately buy it off you either for scrap value or whatever - but as long as you notify the DVLA online then you will be ok.
    • Johno100
    • By Johno100 24th Mar 17, 12:57 PM
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    Johno100
    • #5
    • 24th Mar 17, 12:57 PM
    • #5
    • 24th Mar 17, 12:57 PM
    And don't forget to cancel any insurance you might have on the vehicle immediately you've dropped it off/they've come and taken it away.
    • Bigphil1474
    • By Bigphil1474 24th Mar 17, 1:00 PM
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    Bigphil1474
    • #6
    • 24th Mar 17, 1:00 PM
    • #6
    • 24th Mar 17, 1:00 PM
    I would suggest that in the real world, paying cash is the norm. but may not be legal. The last vehicle I scrapped was worth £20 if I took it there, or nothing if they collected it, so I got nothing. The main issue for you is making sure that the documentation is all sorted. You should at some point get notification from DVLA saying the car has been scrapped, but make sure you fill in the bit on your logbook so you have a record until then. Or, if you get the 11 digit ref no off the V5C, you can notify DVLA online - also tells you what to do. https://www.gov.uk/scrapped-and-written-off-vehicles/how-to-scrap-vehicle


    There's a difference between selling some scrap metal and scrapping a car - the main purpose of requiring ID for scrap metal and issuing cheques etc. is to reduce the likelihood of stolen scrap metal being sold for cash by the thieves. With a car, the log book shows who is the registered keeper, and your license will show that is you. I suppose in theory you could try and scrap a stolen car, but be much harder to do than it used to be for a pile of junk metal. To be honest, scrap values are down the sink at the minute anyway.
    In terms of the MOT, I'd be a little bit wary. Some unscrupulous scrappers have been known to sell on cars taken for scrap - give it a quick clean round, and sell for a quick profit. They can only really do that if it has a valid MOT as it's not usually worth them putting a ticket on it for the value of the car. The MOT not necessarily meaning it's road worthy at the time. You should be able to check the company is authorised (ATF) online.
    • AdrianC
    • By AdrianC 24th Mar 17, 1:10 PM
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    AdrianC
    • #7
    • 24th Mar 17, 1:10 PM
    • #7
    • 24th Mar 17, 1:10 PM
    There are regulations restricting paying cash for "scrap metals".
    http://www.bbc.co.uk/news/uk-20568327
    http://www.legislation.gov.uk/ukpga/2013/10/enacted/data.htm

    So the question is whether buying your car is "scrap metal" or "a car" - no such restriction... It's entirely likely their own internal procedures say "MOT = car, no MOT = scrap metal", to reduce the risk of being deemed to fall foul.
    • Dawn248
    • By Dawn248 24th Mar 17, 1:57 PM
    • 97 Posts
    • 15 Thanks
    Dawn248
    • #8
    • 24th Mar 17, 1:57 PM
    • #8
    • 24th Mar 17, 1:57 PM
    Thank for all the replies!

    The firm is registered as an authorised facility but I'm a bit suss that they asked about the MOT and then offered cash. The car isn't moving and would cost twice what it's worth to fix it- hence me scrapping it!

    Regarding the log book- I don't seem to have the yellow slip, just the blue and green parts of the V5C. I don't know if that's an issue or not?

    Think I might call another local firm and see what their response is.
    Last edited by Dawn248; 24-03-2017 at 2:19 PM. Reason: sp
    • AdrianC
    • By AdrianC 24th Mar 17, 1:59 PM
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    AdrianC
    • #9
    • 24th Mar 17, 1:59 PM
    • #9
    • 24th Mar 17, 1:59 PM
    I guess the next question is - does it MATTER if they pay you by cash, cheque or electronically...?
    • Dawn248
    • By Dawn248 24th Mar 17, 3:51 PM
    • 97 Posts
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    Dawn248
    Well it doesn't matter to me but I don't want to do anything illegal!
    Don't know why I haven't got the yellow slip from the log book either or if it really matters.
    • EdGasket
    • By EdGasket 24th Mar 17, 3:57 PM
    • 3,456 Posts
    • 1,444 Thanks
    EdGasket
    no either a cheque or bank transfer when you provide evidence that the car is yours to scrap
    Originally posted by tedted
    Why? I've always been paid cash and never had a problem. For a small amount its the best way isn't it?
    • tedted
    • By tedted 24th Mar 17, 4:13 PM
    • 124 Posts
    • 44 Thanks
    tedted
    if they are a registered scrap yard they have to see and record your driving licence or passport and a utility bill in your name,has been like this for a few years now.
    • AdrianC
    • By AdrianC 24th Mar 17, 5:52 PM
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    AdrianC
    Why? I've always been paid cash and never had a problem. For a small amount its the best way isn't it?
    Originally posted by EdGasket
    In terms of the scrap metals legislation, simply to deter the... umm... more casual sectors of the economy.
    • Dawn248
    • By Dawn248 25th Mar 17, 4:47 PM
    • 97 Posts
    • 15 Thanks
    Dawn248
    Re the Log Book. Should I put off scrapping the car for a while and apply for a new V5c as I can't find the yellow slip?
    • arcon5
    • By arcon5 25th Mar 17, 5:29 PM
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    arcon5
    Just take their money, complete the logbook and be done with it. How they account for it is their problem not yours so long as either registered keeper is changed over or scrap slip completed
    • phill99
    • By phill99 25th Mar 17, 7:36 PM
    • 7,904 Posts
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    phill99
    It sounds like they aren't scrap dealers. They may be classed as motor traders, therefore the legislation applying to selling cars for scrap to a scrap dealer are not applicable. You'll probably find that he will pay you say £100, the strip the car to components, sell some second hand parts, and then sell the rest to the scrap man.
    Eat vegetables and fear no creditors, rather than eat duck and hide.
    • Harry Sharpe
    • By Harry Sharpe 16th Jun 17, 9:02 AM
    • 3 Posts
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    Harry Sharpe
    It is illegal for a dealer to offer cash for scrapping your old car. Sell it hassle free and with full paperwork to avoid legal liabilities.
    • AdrianC
    • By AdrianC 16th Jun 17, 9:07 AM
    • 14,766 Posts
    • 13,125 Thanks
    AdrianC
    It is illegal for a dealer to offer cash for scrapping your old car.
    Originally posted by Harry Sharpe
    It's not quite that clear cut.
    http://www.legislation.gov.uk/ukpga/2013/10/section/21/enacted
    • arcon5
    • By arcon5 16th Jun 17, 2:39 PM
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    arcon5
    As long as you get your cash and a receipt who cares, if it's illegal it's them breaking the law not you
    • Joe Horner
    • By Joe Horner 16th Jun 17, 6:40 PM
    • 4,029 Posts
    • 3,510 Thanks
    Joe Horner
    Thank for all the replies!

    The firm is registered as an authorised facility but I'm a bit suss that they asked about the MOT and then offered cash. The car isn't moving and would cost twice what it's worth to fix it- hence me scrapping it!
    Originally posted by Dawn248
    Bear in mind it would cost you twice what it's worth to fix it.

    Once upon a time a lot of scrap yards would get the "better" cars that came their way back on the road because they're up to their eyeballs in parts and many have pretty well equipped workshops as well for dismantling. One of my favourite scrap yards in Plymouth even had their own MOT station on site.

    So, say, an engine swap that might cost you £500 for a good used engine plus labour for fitting will cost them an engine out of their stock and a few hours of their time.

    As others have said, just make sure DVLA are notified of the sale -
    legally you're selling it not scrapping it so do it online like any other sale with the ATF as the new registered keeper - and that your insurance is cancelled to avoid possible come-backs.

    What they do with it then to make a profit is up to them.
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