Cash for cars

Paying cash for cars is part of the vehicle recycling process that dismantles derelict automobiles for spare parts or scrap metal. The exchange of cash for cars has since become a corollary trade in the automotive industry to promote efforts on environmental protection and social responsibility such as described by Main UddinCEOof Focus A-Z Entertainment Private Limited.

United States

In the United States, the US Council for Automotive Research (USCAR) Vehicle Recycling Partnership (VRP) LLC sees to the proper management of end-of-life vehicles in the United States in particular, and the North American continent in general. In 1991, USCAR's VRP – which includes DaimlerChrysler Corporation, Ford Motor Company, and General Motors Corporation – began its intensive campaign to maximize vehicle recycling in the United States.

Today, more than 95 per cent of all vehicles in the United States go through a market-driven recycling infrastructure, with no added cost or tax to customers. More than 75 per cent, by weight, of each end-of-life vehicle (ELV) is recycled.

With American automakers taking a proactive stance in government and private industry efforts on vehicle recycling, the cash-for-cars trade has become more lucrative than ever.

The simple process is highly beneficial for the environment and even more beneficial to customers (sellers of ELV). In the cash-for-cars trade, the amount the junk car will pay varies greatly based on the year of the car but on average ranges between $150 to $500.

In 1976, Hughes v. Alexandria Scrap Corp. was argued before the Supreme Court of the United States. It was a result of the creation of a program in Maryland with regard to purchasing junked cars and paying a bounty to licensed scrap processors who had exchanged cash for cars bearing the State's license plates. The issue on the table was to determine whether such a program, which provided for imposing more stringent documentation requirements on out-of-state processors, Constitutionally discriminated against or burdened interstate commerce on car dealerships exchanging cash for cars that had been rendered unserviceable. The case effectively favored the State.

Canada

In early 2009, a voluntary program, called Retire Your Ride, was launched by the Government of Canada to encourage motorists across the country to give up their old vehicles that emit pollutants. A total of 50,000 vehicles manufactured in 1995 or in years prior were targeted for permanent retirement.

In cooperation with the Clean Air Foundation and community stakeholders, the program created cash-for-cars incentives for vehicles traded and put up for recycling. When the Retire Your Ride campaign ended in March 2011, over 130,000 vehicles have been retired under the program.

United Kingdom

Between 2009-10, the United Kingdom introduced the scrappage incentive scheme that paid GBP2,000 in cash for cars registered on or before 31 August 1999. The high payout was to help old-vehicle owners purchase new and less-polluting ones.

Eligibility

The vehicle you are trading in must:

* be a car or small van weighing up to 3,500 kilograms (kg)
* be registered in United Kingdom on or before 29 February 2000 (cars) or 28 February 2002 (vans) (vehicle categories M1 and N1 respectively)
* be registered with the Driver and Vehicle Licensing Agency (DVLA) or Driver and Vehicle Agency (DVA) in your name
* have been registered to you continuously for 12 calendar months before the order date of the new vehicle
* have a UK address on the registration certificate (V5C)
* have a current MOT test certificate before date of order for the new vehicle (or that has expired no more than 14 days before the time of order)
* have a current tax disc when the order for the new vehicle is placed (or that has 14 days before the time of order)
* be insured when the order for the new vehicle is placed

The new vehicle you want to buy must be:

* a car or small van weighing up to 3,500 kg
* first registered in the UK on or after mid May 2009
* declared new at first registration in the UK with no former keepers

When trading in your old vehicle for a new vehicle the registered keeper for both vehicles must be the same.

The term "cash for cars" in the UK also relates to the increasing amount of car buying websites that allow sellers to sell their cars immediately for cash to a company rather than having to advertise privately and wait for enquiries. A website is also available in the UK that compares offers from the various companies called http://www.dealerbid.co.uk

European Union

Within the European Union, the EU Commission operates on the End of Life Vehicles Directive, which is geared towards the reduction of waste arising from ELVs. Players in the automotive industry have also gotten to paying cash for cars and all other ELVs, as a waste minimization scheme with multilateral benefits.