Before you start hunting for Junk Car Buyers to sell your junk car, you need to know how Junk Car Buyers determine the value of your vehicle. This is important as there are many Junk Car Buyers out there who are always on the lookout to grab the best deal possible even if it means that they’ll try to find reasons to undervalue your junk car. Yes, ladies and gentlemen, many Junk Car Buyers do that. This is why you need to be prepared before you head to a junk car buyer. You need to know some of the things Junk Car Buyers look at to determine the value of your vehicle. This will help you in negotiating a good deal.
How Do Junk Car Buyers Determine The Value Of A Junk Car?
For you to be able to negotiate a good bargain with your junk car buyer, you must understand how Junk Car Buyers determine the value of a junk car. There are a couple of things Junk Car Buyers look at before they give you a quotation.
Junk Car’s Year, Make, And Model
Junk Car Buyers have a business model where they make money off selling working parts of a junk car on the secondary car market and selling the rest of the vehicle as scrap. The year, make, and model determine how much money one can get for the spare parts and this is one of the reasons why Junk Car Buyers will always ask you about the year, make, and model.
Secondly, some models sell for great prices in certain states due to their demand. For example, a Toyota might sell for a higher price in Minnesota than Indianapolis and so on. Junk Car Buyers assess the market demand and offer prices accordingly for the make and model offered.
Thirdly, vehicles made in the past do not have much steel or metal in them compared to the newer models. If you were to scrap a Toyota corolla 1990 and a Toyota Corolla 2005 you will get different rates. This is because the new model has more plastic, more steel and more materials used in it which fetches a higher price. Hence, if your model is very old, expect to get lower rates.
Okay, so this is a huge one for Junk Car Buyers. These business owners like to purchase vehicles that are in running condition as it brings income from two different streams of revenue. If a vehicle is in running condition that means that its parts are working and workable parts are sold by Junk Car Buyers to make money. However, if a vehicle is not running, then Junk Car Buyers sell it in scrap.
Having a vehicle that is running can fetch you a great price as Junk Car Buyers can sell its working parts and also make money by scrapping it. You can negotiate the rate by researching a bit on the parts and the prices it fetches in the secondary market. This will give you a ballpark figure of what to expect from Junk Car Buyers.
You may have heard over and over again the three things that impact a business and that is “location, location, and location”. In the case of Junk Car Buyers, it plays a huge role in how much money these businesses make.
As mentioned previously, Junk Car Buyers determine the rate of your junk car by the location the vehicle is in. Certain vehicles are popular in different regions thus driving up the price you can get for it.
Another thing tied to location is the price of scrap metal. Scrap metal prices vary from one region to another. If you’re selling a vehicle in a region where scrap prices are low, expect to get a lower quote.
Demand For Running Parts
This is a bit technical but Junk Car Buyers pay for the vehicle according to the demand for its parts. If the demand for running parts of a junk car is high and people are purchasing it because their vehicles are breaking down, this drives the price of the parts upwards. If the junk car is rare and has running parts, then the price it will fetch in the secondary market is also high. However, if there is a very low demand for the parts of your junk car then you may not get a higher quote.
Market Rates For Scrap Metals
This factor is linked with the second business model of Junk Car Buyers where they sell your vehicle in scrap to make income. An average vehicle is made from 2,500 pounds of steel and more than 280 pounds of aluminum which can amount to a hefty amount depending on the market rate for scrap metals. Hence if the scrap metal rates are up, you can expect a good rate but if it’s plunging downwards, then the rate you might get won’t be so appetizing.
The price for scrap metals is set by the forces of demand and supply. If the demand for scrap metals falls for whatever reason, the market price will take a plunge and vice versa. Do your research on the current scrap metal rates before heading down to a junk car buyer or calling one for a quick quote.
This is important for some Junk Car Buyers. If you’re looking to sell your junk car, you need to have complete documentation like the title and registration of the vehicle. The title is a document that proves you are the owner of the vehicle. If you’ve lost the title to your vehicle then getting one is a huge hassle.
Some Junk Car Buyers will buy the junk car from you even if it doesn’t have the title. However, since they have to go through the hassle of retrieving a copy of the title from the local DMV, you will get a lower quote.
How To Get The Most Out Of Your Junk Car Buyers?
It has been established that Junk Car Buyers like vehicles that are in good condition. You may not have maintained your vehicle properly or it’s been in the garage for way too long collecting dust. In such situations, never take your vehicle to Junk Car Buyers without giving it a good look.
Think of it this way. You’re a junk car buyer and two different sellers approach you with similar junk cars. One of them is washed out and in a bad condition while the other one looks clean and presentable. Which one will you prefer to buy? Of Course – The latter one!
Here are some tips that you can follow to get the most out of Junk Car Buyers.
Wash Your Junk Car
Get a bucket, a sponge, and some car washing liquid. Mix the detergent with warm water in a bucket and use the sponge to get all the suds on your car. Wipe down the car with water and dry it with a fiber cloth. This will get your vehicle nice and clean, ready to amaze Junk Car Buyers.
Before you start calling up Junk Car Buyers for instant quotes, do a thorough deep cleaning of the interior of your vehicle. Get a vacuum and start getting those car mats clean. Use a cloth and cleaning spray to wipe down the interior giving it a shiny look that is sure to impress Junk Car Buyers.
Scrub The Tires
Your tires are sold in the secondary market and priced according to the condition it is presented. Dry cracked tires will give you a lower payout and you need to look at the feasibility if you were to repair the car’s tires before selling the vehicle to a junkyard. If the feasibility does not work out well, here’s a trick that can work in most cases. Wash down your tires with water and give it a good scrub using water and detergent. Wash the tires down before patting them dry.
A clean dark oiled tire may fetch you a good rate as the condition of the vehicle’s tires is not so evident. However, if you have dried cracked tires that seem like they can burst open any time, you will not get a good rate for that.
The More You Wait, The Lesser You Might Get
Finally, this is a known phenomenon all over the world. Many people will tend to hoard items and wait until it gets antique and expensive. Or many people hoard items in the hopes that the economy might go down pushing the prices of their items upwards. However, that is just an arrow shot in the dark.
A $10 item right now will never be worth $10 in the future. This is because many factors will affect its price. In the case of vehicles, a vehicle worth $30,000 right now will be worth less than $30,000 in the next five years. This is because newer models are being released each year which reduces the demand for the previous model. Simple demand-supply economics dictate that lower demand results in a lower price.
Secondly, in the case of junk cars, you never know what the price of scrap metal is going to be in the future. Just like how gold fluctuates, scrap metal price varies frequently. Many people wait for the scrap metal price to go up so that they can sell their vehicle at a good rate. However, in doing so, you hold some risk.
What is the risk of waiting for scrap metal prices to rise? Well, the risk is that you never get to sell the vehicle for the price you’re expecting the market will touch. If the market rate for scrap metal goes down, you would’ve not only wasted time waiting but also the opportunity cost to sell the junk car at a good rate.
You never know where the market is heading and in the case of junk cars, it’s always recommended to sell the vehicle as soon as you can. Many other reasons might help you decide to sell your junk car now.
Make Space For Things That You Want
Your junk car might be taking a considerable amount of space in your backyard or garage. This can postpone your plans of renovating the space and introducing something new. Some people want to make a shed in their backyard but the junk car lying there won’t allow for it. Some might look towards making a tools bench or a cabinet in the garage but that junk car is taking up most of the space.
This can postpone your plans to do something about the space for an indefinite period. Not only that but it also adds up to the cost. If a shed is costing you $5,000 to make right now, it won’t cost the same in the next 5 years’ time. Material costs and labor costs can go up resulting in the same shed costing you $7,000. That’s $2,000 more if you were to make your shed now.
Hence, sell your junk car as soon as you can to save on money for your plans. You can easily save thousands of dollars if you are to execute your plans right now rather than waiting for your junk car to fetch a good rate.
Not all Junk Car Buyers will lowball you an offer. Junk Car Buyers that have operated in this space for years are trusted businesses that are there to do a deal. Do your research on the Junk Car Buyers by reading their customer testimonials, heading to their website to see if they’re legit, and going over the services they offer. Some Junk Car Buyers will provide you free tow which might be a huge winner for many sellers considering a tow costs around $300.
Finally, make sure that you don’t go accepting the first offer that comes your way. Get a couple of quotations and compare which one is giving you the best deal. Consider all aspects and then decide to shortlist the junk car buyer.