What is The Scrap Metal Dealers Act 2013

You may have heard of the Scrap Metal Dealers Act 2013, or perhaps it’s not something you’ve needed to know about. Well, if you’re scrapping your vehicle, then it’s been more useful to you than you might have realised. This Act helps to regulate the scrap metal industry and is hugely beneficial to the vehicle scrapping process.

Read on to learn more or head to our Scrap My Car page to get a quote for scrapping your car today.

A claw machine grabs a cube of scrap metal in a scrapyard

What is the Scrap Metal Dealers Act 2013?

The Scrap Metal Dealers Act of 2013 is a legislative act passed by the UK government in October 2013, to provide a law-based framework for the vehicle scrapping process. Prior to the Act, scrapping scams and crime was on the increase – this legislation was created to tackle this crime. It also helps to regulate the industry and ensure all Authorised Treatment Facilities (ATFs) are licensed, environmentally sound and legally permitted to scrap cars, vans and motorcycles.

 What is covered in the Scrap Metal Dealers Act 2013?

The Scrap Metal Dealers Act added the following regulations. If any scrap metal dealers failed to stick to these laws, then they could be convicted and/or fined. You can read the full legislation here, but the key takeaways are:

1. Any individuals or businesses that scrap cars (dealers and collectors) must first secure a scrap metal dealers license, which local authorities can turn down or revoke if considered unsuitable

2. Any individual selling a vehicle to a dealer must provide identification (supplied by a reliable and independent source) at point of sale, to prove their full name and address

3. Scrap metal can only be purchased using a cheque or electronic transfer, not cash

4. Police and local authorities have the right to enter and inspect ATF sites

5. The Environment Agency (EA) holds a central public register of all licensed scrap dealers

6. The term ‘scrap metal dealer’ now also includes motor salvage operators, who will also need to adhere to the Scrap Metal Dealers Act

What are the benefits of the Scrap Metal Dealers Act 2013?

So, you might be wondering what the big deal is with the Scrap Metal Dealers Act? What does it actually mean for you? Well, there are definitely benefits for both scrap sellers and dealers, including:

Dealers are regulated

This means when you scrap your car through a dealer and it’s disposed of through an ATF, these are legitimate, licensed businesses that have been approved by local authorities and the Environment Agency. This gives reassurance that you’re working with a lawful and well-founded business.

Vehicle disposal is a more environmentally safe process

Thanks to this licensing, scrapyards must prove that they’re scrapping vehicles in a way that has a much lower impact on the environment. This includes careful recycling, depollution and disposal of hazardous materials.

The dealer knows that you’re linked to the vehicle

Prior to the introduction of the Act, the UK was seeing a huge increase in vehicle theft, with many cars, vans and motorcycles being stolen and sold for scrap. Now, a dealer must see your ID information (typically your driver’s license, passport and/or V5C logbook) before buying your vehicle from you, to prove you’re actually connected to the vehicle. The introduction of this law saw scrap car thefts drop by 79%. Learn more about this on our ‘Why Do I Need ID to Scrap My Car’ page.

Would you like to learn more about the vehicle scrapping process? You can find out what happens to your scrapped car here, or head to our FAQ pages for more even more info. Our trusted network of scrap car dealers covers the whole of the UK, so you’ll be able to find a scrap dealer near you quickly and easily.

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