- Published 05/07/2021
Why don't scrap car collectors pay cash anymore?
Scrap car collection is now easier than ever to organise. If you're looking to get rid of your car but can't be bothered with the rigmarole of selling it, or your car is just too far gone to be sellable, scrapping it is the right choice. Vehicle salvage collectors will pay you quickly via electronic banking when they collect your vehicle - what's happened to cash?
The role of changing legislation
Car salvage collectors don't pay cash anymore because they're not allowed to. As a part of the Scrap Metal Dealers Act 2013, only bank transfers and non-transferable cheques are allowed to be used as payment. This means it's now a legal requirement for vehicle recyclers and salvage collectors to pay for the vehicles they collect electronically. Cash has been completely removed.
Why isn't cash used anymore?
The legislation is intended to minimise instances of fraud, metal theft, and other crimes from the scrap industry. Previously, it was very easy to commit fraud on scrap cars, because cash transactions generally don't have any paper trail. Even if a receipt is present, it can be difficult to conclusively prove anything.
By shifting the entirety of the payment system to electronic methods, it makes it much easier for dealers, customers, and legislators to keep track of payments as they're made. Ultimately, this protects everyone in the industry, from the scrap collectors themselves through to the clients who are now at much less risk of being defrauded.
Can I still ask to be paid cash?
No. Any scrap metal dealer that offers you cash or allows you to take payment in cash is breaking the law as laid out by the above-mentioned Scrap Metal Dealers Act 2013. This is an offence and could lead to prosecution. At Motorwise, we pride ourselves in only working with regional vehicle salvage collectors who operate by the letter of industry regulation, so none of our nationwide team will take cash as a valid avenue for payment. If you make an offer and it's accepted in cash, or you're offered it, contact us immediately.
Electronic payment is the simplest and easiest way to get paid. When you have your car collected, the paperwork will be signed and in some cases, the money will clear into your account virtually immediately. Cash is no longer the most convenient payment option.
To arrange scrap vehicle collection that suits your busy schedule, get a quote from Motorwise today.