How the new laws banning cash for cars will affect you if you’re buying a car or selling one
Posted on 22nd, Nov 2018
Cash ban for scrap cars comes into effect in Sydney
If you’re a ‘cash for car’ dealer, or a customer looking to sell your car to one, new laws now apply to your transactions and how you conduct them.
Effective from November 1, 2018, cash can no longer be the means by which a transaction – a sale or a purchase – can be made. All payments for scrap vehicles must now be made by cheque or go through an EFT (electronic funds transfer) system through your bank.
Government – the beneficiary
Who benefits from the new laws? The Government and the people do.
The new ‘cash for car laws’ will allow the Government to understand just how much cash the industry generates so it can be taxed more effectively.
But, what the laws will also do is halt the sale of stolen cars that are sold to ‘unregistered dealers’ engaged in the trade. Every year, more than 5000 cars are stolen in Sydney.
A vehicle is stolen every 12 hours in Black town alone (664 vehicles were stolen in the suburb in 2017 according to New South Wales Police Force detective Paul Tickner) – making it the car theft capital of Australia.
Dealers who do not respect the new laws will receive heavy fines. These could be up to $30,000. Furthermore, police will be given new powers to enter and search car yards without warrants. Dealers will have to maintain records of sales – if a car is on the premises but not on the books – it could be reason enough for the vehicle to be impounded and the business owner to be arrested.
Mega Car Removal welcomes the new laws
At Mega Car Removal, we believe the legislation is fair. We fully support the move by the New South Wales and Victorian Governments to crack down on scrap metal crooks dealing in stolen cars. While we fully support the new laws, we would also like to humbly remind the Government that each cash for car dealer provides employment to 18 people on average.
The registered dealerships are run by simple people –who keep full records that comply with the law – even prior to it being introduced.
It is not a problem for us to go through EFT systems – the question we have for the authorities is – will our customers be able to make the shift – as many are strapped for cash and need it more urgently than we, or government officials, do.”
To learn more about the new cash for cars legislation, and how it may affect a purchase or sale, or to sell your vehicle to a complaint, registered Cash for Car Dealer, please call us at Mega Car Removal on 0421 812 819