Four Steps To Scrapping Your Car

You might think that your vehicle is old and isn't worth anything but you can normally still make some money from it. Scrapping a vehicle is a free of charge process that can leave you with a bit of money in your pocket that you can use towards the purchase of a new car. 

A silver MPV car outside a car dealership

If you are wondering how you can scrap your car it is luckily a fairly simple process that doesn't take much effort. There are a few things you can do though to make sure you get the best price and don’t end up out of pocket. 

1. Choose your timing

How much money you get is often all about timing. More often than not, scrap businesses are busiest at the end of the month so they reduce the price of scrap cars as they are already occupied with work. What does this mean for you? Well if you ask for a valuation during their busy period you probably wont be getting the best price. 

This means that it is best to check the value of your vehicle at the start of the month. It is at this time that scrap dealers have less work on and are in need of more vehicles. It also makes sense to scrap your vehicle when scrap metal is in-demand, otherwise if there is little demand for scrap metal this could lower the price you get too. 

2. Scrap your vehicle with an Authorise Treatment Facility (ATF) 

One of the most important things to do to avoid problems when you scrap a vehicle is to use an ATF, also known as an Authorised Treatment Facility, these are government approved scrap dealers. It is possible to find a list of approved dealers on a government website, making it easier for you to scrap your car with a legal dealer. 

It is essential that vehicles are only scrapped at ATFs as they know how to scrap a vehicle in the safest and most environmentally friendly way possible, something that other scrap yards may not take into account. Another thing to be wary of is how the dealer offers to pay you. An ATF will only pay you via bank transfer or cheque, making it completely traceable. 

You should pass over your logbook to the ATF, but get them to complete the yellow ‘sell, transfer or part-exchange your vehicle to the motor trade’ section so that you can return this to the DVLA. If you have lost your log book you can write to the DVLA with the required information (check the DVLA website for info).

3. Use legitimate scrap companies

One way to tell if a scrap dealer isn't legit is if they try to ask you for money. Scrapping a vehicle should be free, even if the car is being collected, the dealer will take a cut off their valuation rather than ask you for any money. For instance if you have to scrap your vehicle without a V5C (logbook) an illegitimate dealer might charge you £25, but they don’t need to and instead will be back-pocketing the money. Also be wary if they offer to pay you in cash. It is now a legal requirement that all money should be transferred via bank or cheque. 

4. Notify the DVLA and your insurance company

Once the vehicle has been scrapped, you need to notify the DVLA that you no longer own the vehicle and that the car is has been scrapped. When they know you are no longer the owner they can refund any remaining month's car tax (they calculate this from when they are informed so do it asap). You should also inform your insurance company that you no longer have the vehicle and they should be able to refund you for any months left you had on your insurance. 

***Disclosure: This is a sponsored guest post***

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