Factors Which Affect Scrap Car Prices
It’s hard to know if you’re getting a fair price for your scrap car, especially since sellers aren’t usually in the habit of getting rid of their vehicles. It’s especially hard to understand why the vehicle you spent a few thousand dollars on is suddenly worth less than a couple hundred bucks.
Trust me, most scrap car buyers aren’t trying to scam you. There are simply several factors that make buying a scrap car an expensive investment. Here are the most important ones:
Declining Price of Scrap Metal
Scrap metal just isn’t worth what it once was anymore. In 2014, China accounted for half of the world’s steel production, but in the past two years, Chinese demand for metals has declined as the country has shifted its priorities from manufacturing to developing higher environmental and living standards. As a result, steel prices are the lowest they have been in ten years. Because the metal is worth so little, car buyers can’t afford to pay very much for scrap cars, or we run the risk of losing our businesses.
Draining and Stripping the Vehicle
Junkyards have to drain the vehicle of all fluids and strip it of all unusable parts before crushing it. This process is labor intensive, and that may be reflected in the overall price.
You can make more money off of your car by selling the usable parts before scrapping the vehicle to owners and dealers who need replacement parts. It’s also a good idea to remove the gas from your car before selling it; the junkyard will have to do that otherwise, and that additional labor may affect your price.
Finally, you should make sure that all personal belongings and garbage is cleaned out of the car before you hand it over to the junkyard. The more work the junkyard has to do to prepare the car for crushing, the more you lose.
Transporting the Vehicle
If you’re considering selling your car to a scrap buyer, there’s a solid chance that your car is
no longer functional or drivable. If that is true, you will need to find a way to tow the car to
the junkyard. There are three options: you have a tow truck and can do this yourself, you have some kind of road side assistance or insurance coverage that will allow you to use a towing service at a reduced cost, or you will rely on the scrap car buyer to provide the towing service for you.
If you choose the last of the three options, the cost of towing the vehicle will be deducted from the price the buyer is willing to pay for your car. Depending on how far your car is from the scrapyard and how much the towing company charges, this can cost you on average between $50-$100.
If you want to maximize your profit, consider selling your car to a junkyard when it is still drivable. This removes the towing problem entirely. Plus, your car is actually more valuable when it is still usable.
Deterioration of Parts
The longer you wait to sell your car, the more money you lose. Why? When a car is sitting in the garage for an extended period of time, the parts deteriorate. Animals may infest the vehicle and tamper with the wires and infrastructure. Scrap car buyers will pay more for
cars that were recently on the road because the quality of the car materials will be higher.