In a move composed of lawmakers, scrap dealers in New South Wales will no longer pay Cash For Scrap Metal purchases to combat vehicle theft. Scrap car companies are allowed to pay through cheque, money transfer instead of cash. The Government in NSW has introduced a new law that prevents payment via Cash For Scrap Cars. Under the Second-Hand Dealers and Pawnbrokers Regulations 2018, the automobile wreckers and scrap dealers cannot trade in cash; they cannot either pay or receive cash. The law also indicates that they cannot possess or trade an unidentified or nameless motor vehicle. Dealers have to keep records of all scrap metal transactions.
Will The New Law Help The NSW Car Sellers?
This rule looks like an excellent way to avoid corruption in the Cash For Scrap Cars industry. It motivates scrapyards to prevent any kind of fraud activity, and the owner of the vehicle and the scrapyard owner can have more transparency between them.
When someone owns an old junk or non-running scrap vehicle, the first thing they have in mind is 'How to get rid of a scrap car for cash?' Then, the hunt to look for the best Money For Cars deals starts. People only want to contact a Car Removal Company in Sydney that is honest, reliable and white collar, and companies following all rules and regulations are legal and can be trusted.
Why Do We Need This Law in NSW?
This law has been brought in to show the car recycling and scrap metal industries infiltration by organised crime and theft. The Scrap Metal Industry Bill 2016 brought about an effective 31% reduction in cash and car thefts in the state.
The Scrap Metal Dealers Act says that it is illegal to pay cash for scrap cars. Instead of cash, you can issue a cheque or make a payment directly into your bank account. While trading your car, it is compulsory to give proof of identification, such as your driving licence or passport.
Even before this law was implemented, people generally found getting cash in return for their old vehicle a little suspicious. But, due to the lack of regulation in this direction, they usually have nothing to say as it was legally ethical.
Be sure that when you recycle your scrap car, your vehicle will be dealt with safely and legally. If the dealer says they will pay you in cash, it's a sure sign they are dodgy. If you want to Sell unwanted Cars in NSW, lawfully receive your payment to avoid any legal actions against you, either in the mode of payment can be cheque or money transfer.