Scrap Metal Trends and the Value of a Junk Car
If you’ve decided to sell your junk car, congratulations! You’re well on your way to having one less thing to stress over and worry about. And, with the cash you get from selling it, you should be able to get a nice, new car, right?
Well, a lot of that depends on the current price of scrap metal. The price of scrap metal, you ask? What’s that? Well, if you’re selling your car to a private buyer or a dealership, global market prices aren’t something you really need to worry about. The amount you’re able to get for your car from a private buyer is based more on the age, make, model, and condition of your vehicle, and the demand for that type of vehicle in your local area.
If your car is in great shape, selling it to a private buyer might make sense. If your vehicle is old, rusted out, beat up, broken down, and generally ready to fall apart, a private party buyer isn’t going to be interested in it. In that case, you’ll need to sell it to a junkyard or scrap yard. And, when you’re working with one of these types of businesses, the price of scrap metal comes into play.
What are global scrap metal prices?
Global scrap metal prices are determined by the relative supply and demand in the global market for scrap materials. If the demand is high and the supply is low, the price of scrap metal will go up. This means that, as a result, your local junkyard or scrap yard will be able to pay you serious cash for your junk car. Why? Because once you sign your vehicle over into their possession, they can pull out its most valuable parts, sell them as used parts to mechanics and consumers, and then compact the rest of your vehicle into a big chunk of scrap metal for sale to a steel mill. The price that the steel mill can pay for the scrap vehicle is determined by the global market price; this in turn determines what the junkyard is able to pay you.
What are scrap metal prices like right now?
2015 was not a good year to sell a junk car for scrap. Why? Well, in late 2014 and early 2015, the bottom fell out from beneath the scrap metal market. We’re not talking a slow or small decrease here: the price dropped by over 75% in a matter of a few short months. Suddenly, a scrap vehicle was worth literally a small fraction of what it had been just months before. Consequently, many consumers were faced with a tough decision: should they get rid of their clunker and get what they could for it, or hold out until the price went back up?
If you waited until recently to sell your junk car, you’re in luck. Prices have steadily climbed back up over the past two years. And now, as of late 2017, the hurricane season this year is expected to create high demand for scrap metal in the coming months. This means prices will likely rise even more. 2018 may be a very good year for consumers looking to sell their old junk car. Even if you not in an area of the US that has hurricanes, like Delaware, you still might want to consider selling. If you’re ready to sell your clunker, make sure you go with a company that pays according to current scrap metal prices: call Junk Car Traders at 855-959-1325 to learn more.
References
https://www.bloomberg.com/view/articles/2017-09-13/hurricanes-deliver-shock-to-scrap-metal-market
