Can You Get Cash for a Scrap Car? The Law Explained

Scrap metal dealers in England, Wales and Scotland are not allowed to pay for scrap in cash. This guide explains the law behind that, how you are paid instead, why you are asked for ID, and what our own name means when it says “for cash”.

Facts checked against GOV.UK and the law on 28 October 2026.

The short answer

If your car is being scrapped in England or Wales, you cannot legally be paid for it in cash. GOV.UK puts it plainly: it is illegal to be paid in cash, and you have to be paid by bank transfer or cheque (GOV.UK: where vehicles can be scrapped). Scotland has an equivalent rule for metal dealers.

You are still paid. The rule is about how the money reaches you, not whether you get it.

What “for cash” means in our name

Our name is Scrap A Car For Cash. In everyday speech, ‘cash for your car’ means being paid money for it, and that is all our name means. It does not mean you will be handed banknotes.

Scrap A Car For Cash (operated by Lead Stack Ltd) takes your enquiry and passes it to an affiliated collection company covering your area. That company values the car, collects it free of charge and pays you on collection, using a lawful method of payment such as bank transfer. If anyone offers you banknotes for a car that is being scrapped in England or Wales, treat that as a warning sign. See how it works.

The law in England and Wales

The rules come from the Scrap Metal Dealers Act 2013, which extends to England and Wales. The parts that matter to someone scrapping a car:

No cash (section 12).A scrap metal dealer must not pay for scrap metal except by a non-transferable cheque or by electronic transfer of funds. ‘Paying’ includes paying in goods or services. Breaking this is a criminal offence for the dealer, the site manager and the person who makes the payment (section 12).
ID checks (section 11). A dealer must not receive scrap metal from a person without verifying their full name and address from a reliable and independent source. Giving a false name or address is itself an offence (section 11).
Records (section 13). The dealer must record what it received, when, and from whom, keep a copy of the ID it used, and keep a record of the cheque or transfer (section 13).
Licensing (section 1). Nobody may carry on business as a scrap metal dealer without a licence (section 1). The Act counts motor salvage operators, including businesses that recover parts from vehicles and scrap the rest, as scrap metal dealers (section 21).

The Home Office introduced the cash ban to remove the rewards that made metal theft low risk (Home Office guidance on GOV.UK). A bank transfer or cheque leaves a record of who was paid.

The law in Scotland

The 2013 Act does not apply in Scotland. Scotland regulates metal dealers through the Civic Government (Scotland) Act 1982. The Air Weapons and Licensing (Scotland) Act 2015, section 69, added a rule that a metal dealer or itinerant metal dealer may pay for metal only by a non-transferable cheque or by electronic transfer to a bank or building society account in the payee's name (section 69). It has been in force since 1 September 2016. Paying any other way is an offence.

The one exception to know about

GOV.UK says that if the authorised treatment facility decides to repair and sell your vehicle rather than scrap it, you can be paid by any method, including cash (GOV.UK). In that case you also do not get a Certificate of Destruction, because the car has not been destroyed. In practice you agree payment terms with the collection company before collection, so ask how you will be paid when you accept a valuation.

The ID you will be asked for

Because of section 11, expect to show ID on collection day. The regulations made under the Act say it is enough for a dealer to see either:

a document with your full name, photo and home address; or
a document with your full name, photo and date of birth, plus a supporting document with your name and home address dated within the last three months.

The photo documents listed include a valid UK passport and a GB or Northern Ireland photocard driving licence. Supporting documents include a bank or building society statement, a credit or debit card statement, a council tax letter or a utility bill (but not a mobile phone bill) (Verification of Name and Address Regulations 2013). If your V5C is missing too, see scrapping a car without a V5C.

Being paid by bank transfer: what to expect

Have your bank details ready when you accept a valuation, and agree with the collection company how and when the payment will be made. A few practical points:

In Scotland the law requires an electronic transfer to go to an account in the payee's name, so the account should be yours, or that of the person selling the car.
If you are selling for someone else, such as a relative or an estate, make sure the payment goes to the right account. See scrapping a car not in your name.
Keep any receipt or confirmation the collector gives you, with the date and the registration number.
The valuation is subject to contract and can be revised on inspection. If it is, ask for the reason and agree the final figure before the car is loaded.

Checking who you are dealing with

In England and Wales, a scrap metal dealer needs a site licence or a mobile collector's licencefrom the council. A site licence must be displayed at the site, and a mobile collector's licence must be displayed on the collection vehicle where it can be read from outside (GOV.UK: scrap metal dealer licence). Licences are renewed every 3 years.

Separately, the car must end up at an authorised treatment facility: GOV.UK says it is illegal to scrap a vehicle anywhere else (GOV.UK). Then tell DVLA the car has gone. For how the figure you are paid is reached, see how a scrap car value is worked out.

Questions people ask

Is it illegal to be paid cash for a scrap car?

If the car is being scrapped in England or Wales, yes: GOV.UK says it is illegal to be paid in cash, and you must be paid by bank transfer or cheque. Scotland has the same restriction for metal dealers under its own law. The offence is committed by the dealer, not by you.

Why is your site called Scrap A Car For Cash if you cannot pay cash?

Because in everyday speech “cash for your car” means being paid money for it. You are paid for your car, by a lawful method such as bank transfer, not in banknotes.

Can I be paid in cash if the car is repaired and sold instead of scrapped?

GOV.UK says that if an authorised treatment facility repairs and sells your vehicle rather than scrapping it, you can be paid by any method, including cash. Whether that applies depends on what happens to your car.

What ID will I need?

Dealers must verify your full name and address from a reliable source. The regulations list documents such as a UK passport or photocard driving licence, with a recent bank statement or utility bill if the photo ID does not show your address.

How can I check a scrap dealer is licensed?

In England and Wales, scrap metal dealers need a site or mobile collector’s licence from the council, which must be displayed at the site or on the collection vehicle. You can ask to see it.

Sources

Who does what

Scrap A Car For Cash (operated by Lead Stack Ltd, company number 15877625) takes your enquiry and passes it to an affiliated vehicle collection company that covers your area.
The collection company values the vehicle, collects it free of charge and pays you on collection, in line with the terms you agree with them.
If the vehicle is completely scrapped, that happens at an authorised treatment facility (ATF), which gives you a Certificate of Destruction. A vehicle that is repaired and resold instead does not get one.

More detail: how it works and our terms and conditions.

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