What is the Scrap Value of Vehicles?
What Are the Factors Affecting the Scrap Value of Vehicles?
If you are planning to sell your vehicle because it has become too old, you should consider the following factors before analysing the scrap value of vehicles. By scrap value of vehicles, we mean your vehicle’s worth when it is deemed as unusable. The following are factors that affect your vehicle’s scrap value:
The first factor that will determine the scrap value is the type of vehicle, its year of make, and its model. If your vehicle is still commonly driven, is particularly rare, or the demand for some of its parts is high, then it will have a higher scrap value.
The make/model/year is also essential because a car’s material can change significantly from year to year. Currently, different types of material are more common, such as environmentally friendly plastics, so cars from specific years may have much less aluminium and steel, which plays a huge role in ascertaining the scrap value of vehicles.
Condition of Vehicle
The vehicle’s condition determines what its buyer can do with it. Would the buyer be able to re-sell the car after restoring it to a working condition or would the buyer strip the vehicle and sell its spare parts? They may even turn the vehicle into scrap metal in order to sell it.
The scrap value of vehicles will be greater if they can run smoothly after fixing some issues and their current market values are high. If the vehicle is a complete dud, you cannot ask for a lot of money.
Sometimes, the total cost of repairing the vehicle may be too high. In such cases, the buyer will not be willing to pay a lot for it. If the vehicle is completely irreparable, it will be bought for its parts.
Scrap Metal’s Current Price
Usually, a scrap vehicle seller does consider this factor, but it plays a significant role in ascertaining its scrap value. Even cars that are not worth restoring can be transformed into scrap metal. An average car has about 300lbs of aluminium and 2,400lbs of steel, and all this metal may be sold and then recycled into new products.
However, the metal’s scrap value varies notably from year to year. It is all dependent on the demand and supply of aluminium and steel, so the prices will be low if the demand is low and the metal’s supply is high.
The scrap value of vehicles is also affected by their location. There are some location-specific factors that are considered. Firstly, depending on the region, scrap metal’s price varies. Another factor is the popularity of the vehicle in a specific area. If the vehicle is popular in the area you are selling in, it might yield you a higher amount because its parts will be in demand.
The distance of the scrapyard also affects the scrap value of vehicles. If a buyer has to spend extra for transporting the vehicle and its parts, they will spend a lesser amount.
Demand for Parts
Suppose you have an old vehicle that is not worth restoring. Its parts might still be valuable, as everything from the tyres to the battery to the radio can be removed and then recycled. Based on the demand for those parts, their market value varies, so if the demand for a part is high, the value of the part will be high as well.
The demand for parts will be high if other people with the same car need it repairing frequently. If your car is a rare one for which the parts are difficult to find, its demand will be greater. However, if the parts of your car are not often resold, it will probably be worthless.
Furthermore, some parts of a car are valued more than others. If your car has working lights, suspension parts, tyres, and other exterior parts, it is likely to have a higher value. Contrastingly, if your car has missing parts that have a decent resale value, it will yield you less money.
The Time When You Are Selling
The different types of cars will have varying demands in distinct seasons. For instance, the demand for an SUV will rise when the weather is bad, so you will get more money. Similarly, during the summer, the demand for convertibles will be greater.
However, you should not wait for the season to change if you are planning to sell your car. You can instead move it to a different location with suitable weather in order to get a higher price. If you wait for too long, the condition of your car might deteriorate.
With time, the parts that can yield you more money will lose their functionality, and subsequently, their worth. When you are not using your car, its rubber parts become brittle, it gets covered in rust, the sun can fade and crack the seats, and during rain, it will corrode more quickly.
If your car has served its years and is not useful to you anymore, consider selling it as soon as possible. The Scrap value of vehicles is more when their condition is good. If your vehicle is in a working condition or needs only a few repairs, the buyer will be willing to pay more, but if its parts are unusable or demand a lot of repairs, the buyer will be keen to pay less.