The NSW government decided to take a firm stand when it comes to dealing with the scrap metal industry. One of the main steps that they’ve taken is to ban cash payments for scrap metals – which came into effect this month. In the cash for car, as well as the rest of the scrap metal industry, for years, it was the norm for scrap metal dealers to buy scrap cars for cash.
But cash payments meant that stolen cars were also easy to sell, as all the thieves had to do is find a cash for car buyer who was willing to pay cash for the stolen vehicle. This Bill ensures that the criminals are not able to sell and get away with stolen goods easily, if not completely.
The Cash Ban and What It Means for Scrap Car Buyers & Sellers
Documented Scrap Metal Purchases
The Scrap Metal Industry Bill was passed in 2016, with an aim to regulate the scrap metal industry and to make it more secure. According to the bill, sellers need to provide clear proof of ownership when selling a scrap vehicle. The dealers to are required to document the details of the customer and the scrap metal involved. Doing so will help eliminate undocumented scrap car sales, which in turn will help eliminate the illegal selling of stolen cars for cash.
Licensed & Registered Scrap Metal Buyers
Furthermore, the Scrap Metal Industry Bill states that any car removal or scrap car business must be registered and must own a certificate of registration that will be issued to them by the Commissioner of Police, once their registration information is verified.
Police Granted Right to Check Business Premises Without A Warrant
Through this bill, the police have also been empowered to search the premises of a company at any time without a warrant. They may also arrest on legal grounds, anyone involved in making illegal transactions. They are free to patrol the premises as frequently as required, considering the crime rates in the area.
Why Ban Cash For Cars & Scrap Metals?
There has been a lot of opposition for the cash ban, both from the sellers and the buyers. They argue that the ban takes away from one of the biggest benefits of the cash for car business model – instant cash payments.
But the government has deemed it necessary to ban cash in order to put a lid on the number of stolen cars and easy avenue for money that was open to those involved in illegal activities.
Following the cash ban, scrap car sellers will receive payments via EFTPOS or cheques, ensuring that every transaction is traceable. This will also help curtail tax evasion and regulate the industry.
Sydney Car Removals is ready to buy scrap cars of all makes and models. If you have an old, scrap or unwanted car for sale, you can call us on 0477 964 311 or drop us an email at info@sydneycarsremovals.com.au for further information.
