Cash for cars: how selling to a wrecker works

When a car is not worth repairing, a wrecker or cash-for-cars service will usually collect it from your driveway and pay you on the spot. It is the simplest way to get rid of a dead car, and the Wreckers and cash for cars category is one of the busiest in the directory. Here is how the process works and where people get caught out.

What the buyer is actually buying

A wrecker makes money three ways: reselling parts that still work, recycling the metal, and occasionally putting a repairable car back on the road. The offer you get reflects which of those your car fits. A common model with good panels and a working engine is worth more as parts than a rare car nobody needs parts for. A car that is only scrap value is priced by weight.

Getting a quote

Most services quote over the phone or online from the make, model, year, condition and your postcode. Be straight about the condition: if the quote is based on "runs and drives" and it does not, expect the price to drop when the tow truck arrives. Get two or three quotes; the spread between the highest and lowest is often larger than people expect.

Ask whether the quote includes pick-up. Reputable operators collect for free within their area. A charge for towing on top of a cash offer is a sign to keep looking.

Paperwork that protects you

• Proof of ownership. The buyer will ask for the registration papers or a notice of disposal and photo ID. They are required to record who they bought the car from.
• Cancel the registration, or lodge a notice of disposal. Until the transport authority knows you no longer own the car, fines and tolls come to you. Do this the same day. If registration is still running you can usually claim a refund of the unused portion.
• Remove the plates. In most states the plates must be returned or go with the cancellation. Take them off before the car is collected.
• Get a receipt. It should show the buyer's business name and ABN, the date, the amount and the VIN. A receipt from a licensed motor dealer or wrecker is your proof of sale if anything about the car turns up later.

Before the truck arrives

Clear out the glovebox, boot and under the seats, and cancel any toll tag or parking permit linked to the car. Take photos of the car, the odometer and the plates as a record.

Is a private sale worth the hassle instead?

If the car runs, is registered and has a current roadworthy where one is required, a private sale will usually bring more than a wrecker. The trade-off is time: photos, listings, test drives and buyers who do not show up. For a car that needs work or has no registration, the wrecker is almost always the better deal once your time is counted.

Choose a service close to the car. Search the directory by your suburb or postcode, and look for an operator with a real business address and a working phone number.