Can I be paid in cash for scrapping my car?

No, you cannot legally be paid in cash for scrapping a car in the UK. Since 2013, all scrap metal transactions — including the scrapping of vehicles — must be paid for using a traceable method such as bank transfer or cheque. This is required under the Scrap Metal Dealers Act 2013, which outlawed cash payments to help combat vehicle theft and illegal metal trade. At blackburnscrapyard.co.uk, we comply fully with this legislation and ensure all payments are processed legally and securely.

Why Was Cash for Scrap Cars Banned?

Before 2013, cash payments for scrap metal were commonplace. Unfortunately, this also made it easy for criminals to steal vehicles, catalytic converters, and other valuable metal components — and sell them for untraceable cash. The lack of a paper trail made enforcement difficult, and scrap yards often unknowingly processed stolen material.

The Scrap Metal Dealers Act 2013 made it a legal requirement for all scrap transactions to be traceable. By banning cash and requiring formal identification and bank-recorded payments, the UK government created an effective deterrent to vehicle and metal theft.

Cash payments for scrapping a car are banned across the UK.

All scrap payments must be by bank transfer or cheque.

Scrap yards that offer cash risk losing their licence or facing prosecution.

This law applies in England, Wales, Scotland, and Northern Ireland.

How Will I Be Paid?

1. Bank Transfer

This is the most common payment method used by licensed Authorised Treatment Facilities (ATFs). When you arrange to scrap your car, you’ll be asked to provide your sort code and account number. Payment is usually made:

Most reputable yards provide a clear timeframe. If you’d like to confirm the payment has arrived before the driver leaves, that’s a reasonable request.

2. Cheque

Some scrap yards still issue cheques, especially in areas with limited digital banking access. The cheque will be made out to the registered keeper or the person presenting ID. Once received, you can deposit it at your bank — most clear within 3–5 working days.

What If a Scrap Dealer Offers Me Cash?

If someone offers you cash for your scrap car, that’s a major red flag. It suggests they are operating illegally and may be ignoring other legal requirements, such as issuing a Certificate of Destruction or notifying the DVLA.

Warning signs of an unlicensed or risky dealer:

It’s better to walk away from these deals. Accepting cash could even make you complicit in a breach of the Scrap Metal Dealers Act, although prosecution is rare for sellers. Still, it puts you at unnecessary risk. Always use a licensed, law-abiding scrap yard like blackburnscrapyard.co.uk.

What Documents Do I Need to Receive Payment?

To legally scrap your car and receive payment, you’ll need:

Some yards may also ask you to sign a receipt or document confirming the vehicle’s condition and your authorisation to scrap it. We always provide a payment record that shows how and when you were paid.

Scotland and Northern Ireland – Same Rule Applies

In Scotland, the Air Weapons and Licensing (Scotland) Act 2015 enforces the same no-cash rule. Northern Ireland implemented a similar ban shortly after England and Wales. Across the entire UK, cash for scrap metal is illegal. There are no loopholes or regional exceptions when it comes to scrapping a car.

Can I Still Get Paid If I Don’t Have a Bank Account?

If you don’t have a bank account, the only legal alternative is to accept a cheque. You can cash this at your bank or a cheque-cashing service (fees may apply at some outlets). It’s worth discussing this with the yard ahead of time. At blackburnscrapyard.co.uk, we’ll always try to accommodate special circumstances where possible — but we will never offer cash.

What Happens After Payment?

After you’ve been paid via bank transfer or cheque, you’ll also receive:

These documents close the loop and protect you from future liability. Always keep a copy of your receipt and payment confirmation in case any questions arise later.

Our Promise at Blackburn Scrapyard

We never pay in cash — all payments are legal and traceable.

You can choose bank transfer or cheque — both are accepted and secure.

We provide written confirmation of payment for your records.

We’ll talk you through the process and answer any questions about how and when you’ll be paid.

Contact us today to schedule a collection and learn more about how you’ll be paid — legally and safely.

Useful Resources

Still unsure about how scrap car payments work? Talk to our team — we’ll explain it clearly and legally.

Legal Context

The Scrap Metal Dealers Act 2013 made it illegal for scrap metal dealers to pay for scrap with cash in England and Wales. (Similar rules apply in Scotland via separate legislation.) All payments must be via cheque or electronic transfer. This law was introduced to reduce theft by removing untraceable cash transactions. So if you scrap your car, the ATF will ask for your bank details or issue a cheque. Paying in cash would put the dealer at risk of prosecution and loss of licence. There is an exception: if an ATF categorizes the transaction not as scrap but as a used car purchase (i.e., they intend to repair/resell the car, not destroy it), then technically it’s not a scrap metal transaction and cash could be used. But if you are truly scrapping (car is to be destroyed and CoD issued), no cash. The vast majority of legitimate dealers adhere to this.

Why This Matters

Some sellers find this inconvenient, especially if they don’t have a bank account readily available or were expecting instant cash. There’s also a distrust sometimes – waiting for a cheque to clear or a transfer to arrive can make people uneasy compared to cash-in-hand. However, this is the law, so reputable yards won’t budge on it. Another pain point: unscrupulous individuals might still offer cash (illegally) – taking that offer could implicate both parties in an offence. Owners should be aware of the rule so they aren’t surprised or tempted. Additionally, older owners might recall “cash for scrap” being normal and feel confused by the change. It’s important to know you will still get your money, just via other means.

Quick Step-by-Step Summary

  • Expect non-cash payment: When arranging scrapping, the company will usually mention payment by bank transfer or cheque. Prepare to provide either your bank account details (for a transfer, they’ll need sort code and account number) or accept a cheque on collection. Understand the law: Know that this isn’t the scrap yard being difficult – it’s illegal for them to hand over cash. This is for everyone’s protection and traceability. Don’t insist on cash: If a dealer offers cash without prompting, that’s a red flag they are ignoring the law. It’s better to avoid those, as they might be cutting other corners too. Deal with someone who follows the rules (you’ll still get paid the same amount, just in a different form). Cheque handling: If paid by cheque, you’ll need to deposit it at your bank. It typically clears in a few working days. Make sure the cheque is addressed to the correct name (yours). Bank transfer handling: If by electronic transfer (often done at or after pickup), clarify when you can expect it. Many will do an immediate transfer on collection – sometimes you can even check on your banking app before they leave. Others might process it at the end of the day. It’s reasonable to get a timeframe (usually same day or next business day). Receipt: In any case, ask for a receipt or invoice for the transaction from the scrap yard. It should show the amount paid and method (cheque # or confirmation of bank transfer). This, along with your bank statement or cheque stub, provides proof of payment. Scotland/NI note: In Scotland, similar rules under the Air Weapons and Licensing (Scotland) Act 2015 also ban cash for scrap. Northern Ireland also implemented a ban. So across the UK, assume no cash.

Sources & References

  • GOV.UK – Scrap payment method rules; BBC – Cash ban for scrap metal dealers

Helpful External Links

  • https://www.gov.uk/scrapped-vehicle, https://www.bbc.co.uk/news/uk-20117685