Whether it’s to pay the bills, treat yourself, or save towards a bigger purchase like a swish new car, £100 will always come in useful!

There are lots of well-known tips for raising an extra £100. Maybe changing energy suppliers, selling unwanted items, or taking on part-time work such as mystery shopping to earn a bit of extra cash.

However, it’s not widely known that you can make a tidy sum when scrapping your old car. There’s a lot of confusion around scrapping your car, much of it linked to how the industry operated in the past. “Back in the 1990s and early 2000s scrap metal prices were low and motorists often had to pay to have their vehicle taken off their hands,” says Rebecca Currier, spokesperson for CarTakeBack.com, the UK’s largest scrap car recycling company. “However changes to the law means that is no longer the case. And although scrap car prices have fluctuated in recent years, at the moment they are looking very healthy. Currently, the average CarTakeBack is paying for a medium sized car is about £100 including collection, although it could be more if there are any reusable parts to add to its scrap value.”

Obviously, motorists won’t be interested in scrapping an older car they are still happy with. But if it’s showing signs that it’s reaching the end of the road – such as frequent breakdowns or needing repairs that are too expensive given the age of the car, it could be time to move on. Currier says: “Even if you’re not ready to scrap your car yet, but you’re aware that it’s living on borrowed time, getting a no-obligation quote and checking its current value can be worthwhile research.”

Everything can be sorted out online. By entering your postcode and the registration number of your old car into the CarTakeBack website, you’ll get an instant quote. Alternatively you can phone 0330 066 9585.

All quotes are free, no-obligation and valid for seven days so they can be useful for setting a benchmark price when considering different options. Free collection is available, whether the car is to be sold on or scrapped and all the paperwork can be dealt with online. And if the car can be repaired and sold on, the personalised quote will reflect that.

Avoid dodgy dealers (and an £80 fine from the DVLA)

When scrapping your old car it’s vital to use a reputable company – otherwise you could be stung with an £80 fine and lose money rather than make it!

Official scrap car recycling centres known as Authorised Treatment Facilities (ATFs) recycle cars responsibly and meet the 95% recycling targets met by the government. They also handle legal issues correctly. The ATF will inform the DVLA that the car has been recycled correctly and the DVLA will then issue a Certificate of Destruction (CoD) for it. Without the correct paperwork the DVLA will assume the car is still in the possession of its last owner and continue to send demands for car tax – followed up by an £80 fine if it’s not paid.

Unlicensed scrapyards will sometimes try and trick customers by offering them a ‘certificate of disposal’ or a ‘destruction certificate’. “Another red flag is if a dealer offers you cash for your scrap car,” says Currier. “That’s been made illegal in England, Wales and Scotland in an attempt to cut down on scrap metal theft. With the exception of Northern Ireland, any payment for a scrap car should be made by cheque or bank transfer. CarTakeBack pay promptly for your scrap car via electronic transfer into your bank account or by cheque.”