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The worth of junk cars continually fluctuates due to the current state of the economy, laws, regulations, and overall demand. Some other factors that affect the price of your junk car are the car’s year, make, and model. Are you asking yourself, “should I junk my car now, or wait?” You’ll want to consider the current going prices for junk cars in estimating the cash offers you can get. Here is a rundown of how the prices for junk cars are figured and how they are predicted to change.
What Determines the Cash Value of Junk Cars?
When asking the question “how much can I get if I junk my car,” it’s essential to remember that you are selling it for its metal value, not its trade-in value. Cars are made up of various types of metals, all differing in worth. Steel is the most common type of scrap metal and along with iron, makes up about 65% of a car’s weight.
Auto salvage yards, junk yards, and scrap dealers, such as Junk Car Medics, pay cash for cars so they can strip the metal and sell to manufacturers. Manufacturers then recycle the metal to make a variety of goods, including new cars and building materials. When junking a car, the value is based on the demand for metal. So, when manufacturers experience a drop in production, it reduces the demand for metal – which means a lowering of best prices offered for junk cars.
Market Trends and Overview of the Junk Car Industry
Today, the demand for metal is low, and the supply is high, which means current scrap car prices are low as well. In the last two years alone, prices have fallen because of changes within the global economy. It’s important to remember that metal is an international commodity traded worldwide. Therefore, developments in other countries will have a direct impact on metal prices, such as a decrease in supply or an increase in demand.
One significant global change that affected the worth of steel and other valuable metals is the decrease in the development of steel in China. For years, China had a thriving economy, and the country’s overall development was on the rise. The demand for steel was immense, causing its worth to be high. But in recent years, this growth has ceased, as well as the demand for steel. As the world’s most populated country, this had a massive impact on steel and metal trade.
China still produces steel, both finished and semi-finished, and due to the availability of these materials, its worldwide worth has significantly decreased.
Alternatively, the United States has seen an upturn in the economy, and with it, the demand for steel has witnessed a moderate increase, which is expected to continue as we move into 2020.
The Variation of Worth by State
The value of junk cars – and steel – varies by state. Factors, such as state scrapping laws and local demand, affect how much you are paid for your junk car. If you’ve been asking yourself, “should I junk my car,” you’ll want to keep in mind that some states require intensive security steps, such as fingerprinting, before a car can be scrapped. This increases the cost of processing your junk car and lowers the amount you receive for it from junkers.
Some logistics factors also come into play. In states that have few junk car buyers, traveling with tow trucks to customers is expensive because of the hassles involved. On top of it all, they might not be able to offer free towing and junk car removal. The cost of transportation for the business and lack of competition are two factors that can reduce the price you’re offered for your old car.
How the Value of Junk Cars Fluctuate Throughout Time
There are times of the year when scrap metal is more in demand and valuable. Scrappers often buy junk cars at a higher price before tax time – most buyers often look to purchase salvaged car parts after receiving their tax returns.
Summer is a time of construction, which increases the demand for metal. So, it’s common to see the prices of junk cars rise in the summer months. Monthly fluctuations in the price of junk cars are the most common. Months with little to no change in the worth of scrap metal points to a steadier economy.
Time often reflects shifts within the world’s economy. Like the growth and decline of development of steel in China, major developments in different countries can increase the demand and value of metal, therefore trickling down to the overall worth of junk car prices.
How the Year, Make, and Model Impacts a Junk Car’s Cash Value
While there are a few exceptions to this rule, the older a car, the less it's worth. Some critical points to keep in mind when asking yourself, “do I want to junk my clunker,” are as follows:
- Popular cars tend to be valued top dollar if parts can be salvaged and resold
- New cars are made with aluminum & magnesium alloy, which are worth more than steel, increasing their scrap value as it saves manufacturers money.
- Discontinued cars tend to be valued less as their parts aren’t in high demand and the scrap value is all it’s worth
- Some newer cars use less metal and more plastic, lowering the scrap value of such junk cars.
What Will I Get Should I Junk My Car? Junk Car Medics Is Here to Help
When deciding whether to sell junk cars for cash, many factors need to be considered. Not only do you need to consider the year, make, and model of your car, but also the state you live in and the need for scrap metal both locally and worldwide.
While prices for junk cars and scrap metal are currently low, it likely won’t stay this way for long. As countries continue to grow and develop, construction will eventually pick up, increasing the need for these recycled metals. Remember, recycled metals are considered more readily available, energy-saving, and cost beneficial, making your junk vehicle more valuable than you may think.
Looking to junk your car but wondering how much junk cars are currently selling for? Talk a look at the below table to find out!