How to Take Cash for a Junk Car Safely

• Check the buyer’s name and license. You can search for a hauler, wrecker or scrap processor on DOL’s license lookup. Our endorsement is #09770, which you can check on the state business license lookup. Here is how to look one up.
• Confirm the amount by text or email, and whether anything comes off. See is free towing really free.
• Ask how you will be paid. If you agreed to cash, get it clear that it is cash.
• Choose a time when you can have someone with you. If you can, pick daylight hours so the paperwork, the car and the money are easy to see.
• Have a pen, your ID, your title or other document, and a screwdriver for the plates.

1. Look at the truck and the driver

   Licensed hulk haulers must show the licensee’s name, mailing address and current business phone on both sides of the truck, under WAC 308-65-070, and carry the license certificate in the vehicle. Check that the name matches who you talked to, and ask to see the certificate if you want to.

2. Go over the deal

   Say the amount out loud. If the number has changed, stop and read what to do if the price drops. You do not have to continue.

3. Count the cash

   Count it yourself, in a spot where you feel comfortable, before you sign. Have your helper count it, too. If you can, do this away from a busy sidewalk and in view of a second person.

4. Read, then sign

   Read every document first. Only sign on the correct line, and do not leave the buyer’s section blank. Don’t make corrections with white-out or by scratching things out: alteration or erasure can void a title. See how to sign a title and who to give a signed title to.

5. Take your plates

   DOL says sellers are “legally obligated” to remove the plates. Then watch the car load.

6. Put the money away

   Don’t carry it around or mention it to neighbors. Deposit it or put it somewhere safe when you are able.

Write these down before the driver leaves, or take a photo of a signed bill of sale.

Then file the Report of Sale within five business days. Our after-sale guide shows you how, and explains why a properly filed report matters. Under RCW 46.12.655, a seller is relieved of liability for someone else’s operation of the car when the sale, delivery, release, handover and report all line up.

You can end the deal at any point before you have signed and handed over the car. Stop if:

• The money is short and the driver says the rest will come later.
• Someone asks you to sign before you are paid, or to leave a name blank.
• You are asked to write a false price or date on a form. A false statement on a title transfer is a class B felony.
• You feel unsafe. Go inside, and call 911 if you need to.

If a dispute comes up later, keep your records. The Attorney General accepts consumer complaints, and DOL has a license complaint page.

This is general information, not tax advice. The IRS says that losses from the sale of personal-use property such as a car aren’t tax deductible, and that a gain over your basis is a capital gain. For a junk car kept for personal use, a loss is the likely result, but ask a tax professional if your situation is unusual, such as a business vehicle.

We pay cash on the spot at pickup and we recommend you be there, to hand over paperwork and get paid. Our how it works page explains the steps, and you can reach us at (206) 941-0612, 7 days a week, 8 AM to 11 PM. If you can’t be there, see do I need to be there.