Is it legal for the scrapyard to pay me in cash for my scrap car?

No — it is not legal for a scrapyard to pay you in cash for scrapping your car. Since the introduction of the Scrap Metal Dealers Act in 2013, all payments for scrap metal — including end-of-life vehicles — must be made via traceable methods like bank transfer or cheque. This law was introduced to tackle metal theft and make scrap transactions more transparent. At blackburnscrapyard.co.uk, we only offer secure, compliant payment methods and provide full receipts for every transaction.

What Does the Law Say About Scrap Car Payments?

The Scrap Metal Dealers Act 2013 prohibits cash payments for any form of scrap metal, including complete or partial vehicles. This applies to England, Wales, and Scotland. Scrap yards must verify your ID and pay you through a method that can be traced — either a direct bank transfer or a cheque. If a scrapyard offers to pay you in cash, that’s a strong sign they’re not operating within the law. You could be putting yourself at legal or financial risk by accepting such an offer.

UK law bans cash for scrap vehicle payments since 2013.

ATFs must pay by bank transfer or cheque only.

Scrap yards must check your ID and provide proof of payment.

Accepting cash may tie you to an illegal or unlicensed operation.

Why the Ban on Cash?

The government banned cash for scrap to combat illegal trade, stolen vehicles, and unregulated waste disposal. Cash is hard to trace, and the old system made it easier for dodgy operators to sidestep legal responsibilities. With digital payments, there’s a paper trail — and this protects both sellers and buyers. If something goes wrong (like DVLA not receiving notification), you’ll have a record to show who paid what and when. Bank payments are safer, faster, and align with environmental and licensing rules.

Step-by-Step: How You’ll Be Paid for a Scrap Car

Step 1: Agree a price for your vehicle with the ATF.

Step 2: Provide valid photo ID and bank details for payment.

Step 3: ATF collects the car or receives it at their site.

Step 4: Payment is issued by same-day transfer or posted cheque.

Step 5: Keep your receipt or Certificate of Destruction for proof.

What If Someone Offers You Cash?

It’s a red flag. If someone offers you cash, decline the offer and report them if necessary. Legitimate scrapyards will never suggest cash — doing so could risk their license. Selling your car to an unlicensed dealer can result in DVLA or Environment Agency investigations, especially if the car is never deregistered. Stick with ATFs that offer secure, compliant payment and paperwork. That way, you protect yourself from fines, fraud, and future vehicle misuse linked to your name.

We Only Use Legal, Traceable Payment Methods

At blackburnscrapyard.co.uk, we always pay by bank transfer or cheque — no cash, no exceptions. This ensures you’re protected and every scrap transaction meets UK law. You’ll receive a Certificate of Destruction and a payment receipt. We also verify your ID as required by law and help you notify DVLA so that your vehicle record is fully closed.

We never offer or accept cash payments — fully compliant with the law.

We issue fast, same-day bank transfers for your convenience.

All payments come with receipts for your records.

We help you meet all DVLA and environmental responsibilities.

Request a scrap quote and get paid the legal way — fast, secure, and fully traceable.

Useful Resources

Got questions about how you'll be paid when scrapping your car? Talk to us — we’ll keep it legal, secure, and stress-free.

Legal Context

Scrap Metal Dealers Act 2013 (England/Wales) and parallel laws in Scotland ban cash for scrap metal transactions, including vehicles. Violators (dealers or sellers) can face fines. It doesn’t affect whether you can be paid – just how.

Why This Matters

Some sellers might prefer cash for convenience, but accepting it could implicate you in an illegal deal. Plus, cash offers might be part of dodgy operations where your car might not be properly deregistered.

Quick Step-by-Step Summary

  • Agree on price with ATF
  • Provide ID and bank details
  • Receive payment via bank transfer or cheque (often at time of pick-up or once car delivered)
  • Ensure you get a receipt or proof of sale too. If someone offers cash, insist on bank transfer or find another ATF.

Sources & References

  • UK legislation (Scrap Metal Act)
  • news articles when law introduced
  • scrap dealer websites FAQ (they often state “no cash payments”)

Helpful External Links

  • Scrap Car Network – notes on cash ban
  • Gov guidance on Scrap Metal Dealers Act