Without A Trace – Why The New South Wales Government Has Decided To Ban Cash For Scrap Car Sales

Posted On November 21st, 2018

5000 cars are stolen in Sydney alone every year – inviting a cash for car ban that came into effect November 5, 2018.


Cash for cars is a big industry. And the NSW government has started to see a possible link between car thefts and car sales to unregistered cash for car dealers.

The modus operandi is simple – thieves steal cars and then pass them to unregistered dealers who strip the cars for parts and sell them either in Australia or export them overseas.

But from November 5, 2018, this will become harder to do. A Government crackdown in New South Wales has led to new laws being passed that ban the exchange of cash for cars in Sydney.

For a sale or purchase to take place, legally, the agreed sum must be paid by cheque or EFT (Electronic Funds Transfer).

How the Government benefits?

The tax net widens. While no formal estimates exist on how big the scrap car market is – one can make guestimates based on the total number of cars scrapped annually due to accidents or theft. 12,334 vehicles are involved in serious accidents annually. Add to this the 5000 cars that are stolen every year in New South Wales alone. That’s 17,334 vehicles at an average value of $1500 per vehicle (including resale of melted down steel), which equals to $26 million. At a tax rate of 20% – that’s 5.2 million for New South Wales alone.

How the community benefits

Car theft is a serious problem in Sydney. In Blacktown alone, 664 vehicles are stolen every year. That’s one car stolen every 15 minutes.

What this makes Blacktown? The car theft capital of Australia.

What drives people to car theft? Easy money. When we take what is easy – it becomes a habit – and at the prices, people will pay for steel these days – theft is a habit that’s all too easy to cultivate.

The New South Wales Government hopes to stop – or at the very least – dramatically reduce, car theft in Australia with this initiative.

Can you be fined if you haven’t paid for a vehicle using Australian banking systems?

Yes. The fine can be as high as $30,000. Police may now enter your premises if you’re a scrap car dealer and search it without requiring a warrant to do so.

If a vehicle is not registered – with full chassis and other details – including the full licence or other valid photo ID of the person who sold you the vehicle – you could be arrested if you’re the owner of the scrap car business.

Is it worth taking the risk?

No. It is better to register your business with the authorities in New South Wales immediately. Never buy a car from a person unless they own it and can prove that they do. Buying a scrap car is simply not worth the risk – or the loss of sleep it involves – anymore!

Sell Your Car To Licensed Cash for Car Dealers Only

For car sellers, it is important to ensure that they only deal with licensed, registered cash for car dealers, like Express Car Removals. We comply with all government regulations to provide you with a quick, hassle-free and completely legal car sale.

If you have a car to sell, call us on 1800 602 255 to get a quote.