Junkyards calculate value using three main factors: scrap metal weight, salvageable parts, and current market demand. They estimate how much money they can recover by recycling the metal and selling usable components, then offer you a percentage of that total.
The junkyard valuation formula:
- Base scrap value (vehicle weight multiplied by current steel price)
- Plus parts value (engine, transmission, catalytic converter, body panels)
- Minus towing and processing costs
- Minus profit margin (typically 20% to 40%)
A 3,000-pound car at $0.10 per pound has a base scrap value of $300. If the engine is worth $400 and the catalytic converter adds $200, the total recovery value is $900. After towing ($50 to $100) and profit margin, the yard might offer $400 to $600.
Junkyards also consider how quickly parts will sell. A common vehicle like a Honda Accord has faster-moving parts than a rare import. High-demand vehicles get better offers because the yard can sell components quickly.
Understanding this math helps you negotiate. If you know your car has a valuable engine or rare parts, mention it. Check current scrap car prices to know the baseline before you call.
