Croydon Council says it is using three removal vehicles to tow them away at an annual cost of around £135,000 a year.
According to council figures, 60 cars a week - or 3,000 a year - are being towed away.
One trader from European Metal Recyling in Beddington Farm Road, Croydon, said there was very little money in the scrap car business. He said scrapped cars were worth £15 five years ago but were only worth £5 today.
"Wheels and tyres cost £1.50 each to dispose and under new environmental laws we can't take batteries and the car has to be drained of all fluid. That's why scrap metal dealers are not taking cars away for free. Most will charge owners £25 to £30 to pick one up."
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