The new and used car market is hot now, which is a top reason why now is a great time to junk your car. With shortages out of the factory, potential buyers are holding onto their vehicles because they can’t find new ones to replace them.
Drivable cars are worth more money than undriveable cars. If you can drive your vehicle to the junk dealer, you don’t have to get a tow truck. Driving your vehicle to the junk dealer shows that the parts still work, making it more valuable.
Manufacturing Issues
You can make more money junking your car because car manufacturers aren’t just struggling to produce cars, they’re also struggling to make OEM car parts. With the need for car parts, people with junk cars can cash in to help meet demand.
When you can’t get your hands on OEM parts, and parts departments can’t find aftermarket parts, the only thing left is to use them from junked cars. So, if you’ve got one, you can sell your junk car for more money than you might expect.
Covid Causes
Part of the drought in car parts comes from the COVID-19 pandemic. When the pandemic was at its peak, manufacturers in all industries stopped making items because no one was buying them. Automakers cancelled their contracts, so their suppliers stopped producing parts.
Now, automakers cannot get microchips and other vital components to their factories. To meet other COVID-19 demands, microchip producers shifted to the consumer electronics industry, as customers purchased technology they could use at home.
Many chipmakers are still making microchips for consumer electronics, despite the demand from automakers. Unfortunately, this supplier issue is forcing automakers to completely close their factories. You can see the problem at local car dealerships: their lots are empty.
Issues in the News
The auto industry is suffering from a perfect storm. Along with problems resulting from COVID, automakers can’t get parts because of the weather in Texas. The cold stretch that shutdown power in the Lone Star State slowed the production of petrochemicals used to make plastics and foam.
Then, the big boat got stuck in the Suez Canal. That newsworthy event slowed car production in Europe and Asia. It also halted the delivery of foreign cars on their way to the United States.
Scrap Metal Prices
Along with the need for auto parts, scrap metal is also in demand. The easiest way to figure what your car is worth for its scrap metal is to calculate your car’s weight in tons and multiply it by the scrap metal price per ton.
Selling a car for scrap metal is the easiest way to get rid of a car. But, if you do this, choose the time when the scrap metal prices are high. Most scrap experts recommend getting rid of a car rather than holding on to it as car parts and metal can deteriorate.
If you do decide to scrap your junk car, check for working parts. When you scrap a car, those working parts get lost in the total weight. Scrap dealers want the metal. They don’t necessarily take cars apart and give drivers any value for those parts.
Older vehicles tend to have more scrap metal than newer ones simply because automakers don’t use as much steel as they once did. Several factors affect scrap metal prices, including
- Shortages from manufacturers due to COVID-19 shutdowns
- Industrial demand in various industries like technology and construction
- Seasonal changes can change the prices usually based on manufacturing demands
- Market prices for new metals can affect recycled prices
Cars and trucks have several metals in them. Along with steel, vehicles have parts made of aluminum, copper, and platinum. Steel is the major metal, while aluminum comes in second. Manufacturers use copper in several engine components, while platinum shows up in the catalytic converter.
How to Know If You Should Junk Your Car
The prices are right for anyone who has a junk car to sell. But, how do you know if you have a junk car? If your car no longer runs and isn’t worth repairing, then you’ve got a junk car. Junk dealers also buy cars without titles.
Cars with excessive miles and terrible gas mileage make good junk candidates, especially if they have working parts that could find new life in a vehicle with lower miles. Some people junk their cars if the car is rusty and ugly, or if key features, like transmissions or catalytic converters are missing.
You can also junk your car to put cash in your pocketjunk your car to put cash in your pocket. Now is the best time to sell your junk car because they are in demand and the prices are high.