Is cash for Scrap car ever Legal?

Dawn248

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?

tedted

no either a cheque or bank transfer when you provide evidence that the car is yours to scrap

Inner_Zone

Dawn248 wrote: »

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?

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.

foxy-stoat

Inner_Zone wrote: »

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.

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

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

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

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

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.

AdrianC

I guess the next question is - does it MATTER if they pay you by cash, cheque or electronically...?

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

tedted wrote: »

no either a cheque or bank transfer when you provide evidence that the car is yours to scrap

Why? I've always been paid cash and never had a problem. For a small amount its the best way isn't it?