How to Avoid Car Scrapping Scams

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Nothing lasts forever, especially cars. Vehicles are subject to wear-and-tear on all fronts.

When a vehicle hits a certain age, you will notice it starts to cost more in repairs than it is worth.

Not only are the parts exhausted, it may also become dangerous to use at this point.

This type of vehicle is often referred to as an ELV; or ‘End of Life Vehicle’. 

Scrapping is a popular solution for people seeking to dispose of these types of cars, and it provides some quick cash.

In this article we will discuss the things you should consider before choosing to scrap your car, and how to avoid popular scams that sour the scrapping industry.

Things You Need to Consider: Scrap or Sell?

Should you scrap or sell your car

Before making any decisions, it is important to analyse a few things. Most importantly, whether you should scrap or sell depends entirely on the condition of the car.

If your car is in a good running condition, meaning it is still safe and stable to be used, perhaps selling it to a used-car dealership or selling privately is a wiser choice. Otherwise, you might cut yourself short by scrapping it entirely.

However, if your car is getting old or has sustained permanent damage due to accidents or other mishaps, scrapping is the best way to go.

About now, most people ask: ‘How much would I get by scrapping?’

Unfortunately, there is no definite answer, as your payment depends on many factors including the global supply and demand for scrap metal at the current point in time.

So, give us a call today on 0444 516 125 for an instant up to date quotation.

Damaged car being bought for cash

Scams in Car Scrapping Industry

As with other business models, there are scams in the scrapping industry that can harm many people.

You need to be aware of these potential traps and notice red flags right away.

One of the most popular ‘scams’ is called the “Cut and Shut”. It is dangerous and will get you in legal troubles if you are oblivious to the scheme.

This is how it works: Two used vehicles are combined through welding and other methods to create a “new” vehicle. This “new” vehicle is typically sold illegally to unsuspecting victims.

This means, the old car you are selling for scraps might be “revamped” and used for illegal activities instead of being scrapped. This carries deep legal consequences for everyone involved, including the initial seller.

Scammers are experienced in hiding their identities. If your car is linked to a criminal activity even after you sold it, they could trace it back to you and not the person you sold it to.

So always make sure you inform state government when you have scrapped your car.

To remain completely safe, use a properly registered scrap merchant – such as us.

Red Flags And Solutions

1. No License to Scrap

Legitimate scrap merchants will do what all good businesses do: get licensed and prove they are both transparent and professional.

Always look for scrappers with official local licenses or certification to ensure the legitimacy of the business. This is a good way to ensure your car will not end up linked to any criminal activities.

2. No Receipt / Certificate

Make sure you ask, receive, and keep the certificate issued by the scrapper to say you have officially sold / transferred the vehicle to them. As soon as you agreed on the sale, request this document.

This receipt is proof that you are no longer the owner of the car. If the dealer is difficult about issuing a certificate, or refusing entirely, you may want to look for other scrappers as this is a red flag.

3. Not Cancelling Your Vehicle Registration

In New South Wales, you can cancel your vehicle registration at any time. Just go ahead to the nearest service centre and fill out the relevant forms. You will also need to bring these documents with you:

  • Proof of Identity
  • Certificate of Registration for the vehicle
  • Number Plates
  • Bank Card / Account Details (This is to pay the cancellation fee and receive any refund on unused vehicle registration that has already been paid)

While a car scrapping company may offer to do this for you, it is best that you cancel your vehicle registration yourself.

4. Sounds Dodgy or Too Good to Be True

A common strategy to manipulate car owners into selling is convincing them that the cost of repair is too high and offering scrapping as a “quick money, no requirements” solution.

If something sounds too good to be true, it just might be.

It is always a good idea to seek multiple opinions to get a better understanding of the situation and to learn all your options. This can help you avoid getting scammed by people with ulterior motives.

Final Thoughts

Cars for Cash advertisements are quite rampant these days, and they may be attractive to people seeking quick cash.

Trading your used car for a quick cash sounds like a no-brainer, but it is important to not be oblivious to the fact that not all scrappers are legitimate. This may get you in trouble.

So, if you want to scrap your car, make sure you are not dealing with a scammer.

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