Since the pandemic started, and until today as we’re navigating thru, the overall economy and market have been unstable affecting many industries including the automotive industry. In this article, we will discuss the top three factors that affect the value of your scrap vehicle.
1. Year, Make, and Model of Your Scrap Car
The first factor that goes into determining the value of a scrap or junk vehicle is the easiest: What type of car is it? The year, make, and model of the car determines the current market value of it and its parts. The Canada Black Book value or Auto Trader value of the pre-owned car can be helpful, but junk and scrap cars are valued differently, particularly if they have a lot of problems that prevent them from running. Junk and scrap cars may be worth up to 20% to 40% of the car’s used value according to the above resources.
2. Metal Market And The Scrap Metal Price
This factor isn’t one that most regular car owners would think about, but it actually plays a huge role in determining the going rate of a junk car. Even cars that aren’t worth salvaging can be turned into scrap metal. The average car contains anywhere from 2000 to 2600 pounds of steel and 300 pounds of aluminum, and all that metal can be sold and recycled into new products.
The catch is that the price of scrap metal varies widely from week to week. It’s all based on the supply and demand of steel and aluminum. For example, when supply for metal is high and demand is low, prices will also be low. Steel and aluminum prices also vary for the same reasons depending on the local market.
3. Demand For Parts
Let’s say you have an old scrap vehicle that’s not worth being sold as used drivable vehicle. The parts of the car still have value, because everything from the battery to the tires to the radio can potentially be removed and put in into another pre-owned vehicle. The market value of those parts is based on how high the demand is. The higher the demand, the higher the value.
If other people with the same car frequently need repairs, demand tends to be higher for parts. If your vehicle is a rare car for which parts are hard to find, demand is usually pretty high. Conversely, if your car’s parts are not often resold, the vehicle is probably worth less.
There are other factors that can affect the value of your scrap car in the Greater Toronto Area, such as the used car market demand, the condition of the vehicle, and the location of the vehicle. It is recommended to request a quote for your junk vehicle from your local auto scrapper and provide as much information as possible in order to obtain the best possible offer for your junk car. If you’re wondering how much your scrap vehicle is and you are located in Oshawa, Pickering, Ajax, Whitby, Toronto, Markham, or Scarborough, feel free to contact us to obtain a quote.