Assessing The Value of a Junk Car When Selling

Factors That Affect The Value of a Junk Car

A junk car's worth varies. There are 7 factors that determine a junk car's value. The 7 factors are listed below.

1. Vehicle year, make, and model

The older the vehicle, the lower its value. The only exception to this rule is when dealing with a well-maintained vintage car. Make, and model is not the same thing. The make of a vehicle is its brand. An excellent example of this is when referring to a Rolls Royce or a Beetle. A Rolls Royce is known for its superior design and expensive parts. Therefore, the Rolls Royce will cost more than the Beetle.

When referring to the model of a car, we are referring to its specific name. Nissan is a make that manufactures Nissan Skyline {model}. Newer models have advanced technology and spare parts that have high demand in the market. As a result, the price of these junk cars is higher.

2. Vehicle condition

The condition of a vehicle will determine its sale value. Cars that require minimal repair to be operable will fetch better prices. Junk cars that have numerous mechanical problems will cost less. Junkyard dealers will decide to salvage a vehicle if they establish that repairing it is too expensive.

To increase the sale value of a junk car, protect it from weather elements such as rain. Rain and extreme temperatures can corrode the metal lowering its value. Components that can reduce the car's value include a missing steering rack, transmission system, and damaged engine.

3. Vehicle parts

Decrepit cars that lack valuable parts will cost less when compared to vehicles that have these parts. Functional car parts that increase the value of a junk car include the airbag system, doors, Gps systems, and fenders. Other valuable parts are the wheels, rims, catalytic converters, and bumper. These parts are useful because they are sold to second-hand car dealers.

Parts such as catalytic converters are valuable because they contain precious metals such as platinum and palladium. Bumpers are made from materials such as steel and fiberglass, which makes them useful. Airbag systems that did not deploy can be sold to other motorists at a profit. GPS systems are in high demand because of their electronic components. A car has many parts but it's the valuable junk car parts that matter.

4. Vehicle weight

How does the weight affect junk car value? The bigger the vehicle, the more metals it has in mass. Therefore, bigger cars are bought more because the junkyard will have more metals to sell.

A good example is selling a ford truck and a beetle. The Beetle weighs less because it does not use alot of metal. As a result, it will be bought for less when compared to the buying price of a Ford truck.  The weight has a big impact on the value of junk cars.

5. Local scrap metal prices

Local scrap prices change daily. The prices are affected by factors such as the global economy, the cost of energy, and natural disasters. The prices are also affected by market forces {demand and supply}.

The two most common metals found in a car are steel and aluminum. Therefore, a sudden change in any of these metals will significantly affect the price of a junkyard car. Prices are also affected by geopolitical factors. An example is when a country increases tariffs on the cost of imported steel and aluminum.

The tariff will increase the cost of steel, expanding the demand for local metals. An increase in local demand will result in increased prices for scrap cars. Therefore, scrap metal prices impact junk car values greatly.

6. Valid vehicle title

A car title is used to show proof of ownership. The title must have a license plate number, owner's name, make, model, and year of manufacture. The title should also have technical information, such as gross weight. Vehicles bought using a lien should have the lien holder's information. Lien cars are cars that have been purchased using debt.

Junkyard companies will use information such as gross weight, make, model, and year of manufacture to determine a suitable price. A salvage title is given to a car that has been damaged to the extent that it would cost 50 - 100% of its value to repair.

Read more on how the vehicle title impacts a junk car's value.

7. Vehicle location

The location of the vehicle is a factor in that it impacts scrap metal prices. Location also matters in terms of how far the vehicle is located from the junk car buyer. The longer the distance, the more the towing charges. Higher towing costs will reduce the offer price. Lastly, some vehicles are more prevalent in certain regions than others.  All of these makeup why the location is an important factor in determining the scrap value of a car.

What is the most important factor when assessing a junk cars value?

The most crucial scrap car value factor is the price of scrap metal. Higher scrap metal prices increase demand for scrap cars. The price of scrap metal is affected by three factors. The first is the quality of the scrap metal. A vehicle that has rusted or insulated metal will be valued less.

The second factor is the season. Season affects demand and supply constraints that affect various industries, such as construction. During winter, construction activity slows down, affecting the scrap metal market.

Finally, scrap vehicle prices are also affected by changes in commodity prices. Increased commodity prices in the international market will increase demand for scrap metal. The increase in demand for scrap metal will increase junkyard car prices.

How much are junk cars commonly assessed for?

If you have one or more cars you want to scrap, you might wonder how much money you can get for each vehicle. While the exact price will vary from place to place, as well as the make and model of your vehicle, the average price for junking a car is anywhere between $200 and $800.

Junk car prices are typically calculated by the weight of the vehicle being junked. That's because the scrapyard makes a profit on the metal and raw materials they can harvest from the vehicle. Larger vehicles will yield a higher profit. Smaller cars will yield a lower profit.

The average price for scrapping a car can also vary depending on your state. Here’s a breakdown of the average price to junk a car by state.

View updated junk car prices.