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Why NSW Government Decided To Ban Cash For Car Sales

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


Cash for cars may be a big industry, and therefore, the NSW government has begun to see a link between car sales and car thefts to unregistered scrap car dealers.


The routine is straightforward – thieves steal cars then pass them to unregistered car dealers who strip the vehicle for its parts and sell them either within Australia or export them in other countries.


But this has become harder since November 5, 2018. A Government crackdown in NSW has led to new laws being passed to ban cash for unwanted cars in Sydney.


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


How the government gets the benefit?


The tax net is widened. While no formal estimate exists on how big the scrap market is – one can make estimates based on total cars scrapped annually due to theft or accidents. 5000 cars are stolen per annum in New South Wales alone. Added to that 12,334 vehicles are involved in serious accidents. That’s 17,334 vehicles at a mean value of 1500 dollars per vehicle (including resale of melted steel), which equals 26 million dollars. At a rate of 20% – that’s 5.2 million for brand spanking New South Wales alone.


How the community benefits


Car theft is one of the serious issues in Sydney. In Blacktown alone, 664 vehicles are stolen every year. That’s two cars stolen every half an hour.

Cash For Unwanted Cars


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


What attracts people to car theft? Easy money. What we get easily becomes a habit - theft is a habit that’s too easy to cultivate.


The NSW Government hopes to prevent or at the very least reduce car theft in Australia with this cash for car ban initiative.


Will you be fined if you haven’t purchased a car using Australian banking systems?


Yes. The fine is up to 30,000 dollars. Police now may enter your premises if you’re a scrap dealer and search it without having a warrant to do so.


If a car isn't registered – with full details – including the complete license or valid photo ID of the one who sold the vehicle to you – you'll be arrested in that case, if you’re the owner of the business.


Is it worth taking the risk?


No. It's better to get your business register with the authorities in NSW immediately. Never buy a car from an individual unless they own it. Buying a junk car is just not worth the risk it involves or the loss of sleep.


Sell Your Used Car To Licensed Cash for Scrap Car Dealers Only


For car sellers, it's important to make sure that they only work with licensed, registered cash for scrap car dealers, like Broken Cars Removal. We follow all government regulations to offer you a fast, hassle-free, and completely legal car sale.


If you've got a car to sell, give us a call on 0447002233 to urge a quote.

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