If you’re asking yourself this question, then probably you might not like the answer. This is because it’s very hard today to junk your old or wrecked vehicle for that much. There are many reasons why this is happening, and the following are some of them.
#1: Low exports
The U.S. has been exporting a lot of its scrap metal to overseas countries, up to 20 million metric tons every year. Unfortunately, the exports have been steadily declining since 2014. If this is the situation, then applying basic economics or taking a defensive driving course should inform you that low demand for scrap metals leads to a fall in prices for commodities like junk cars.
#2: U.S dollar is up
As of today, our currency has appreciated so much relative to other countries in the world. This should be good news for everyone, but that is not the case if you’re looking forward to selling your junk car.
Often when our currency appreciates, it means that foreign countries that buy American goods will find it expensive to import. Additionally, when products become expensive, the countries tend to buy fewer. Consequently, the demand for junk cars reduces thus lowering their prices locally.
#3: China has gone cold
The U.S. for many years used to sell lots of scrap metal to China. However, today the economy of China has declined and the spillover has been felt even in their steel industry. Therefore, if China as the greatest importer of the U.S. scrap metal is no longer interested, it means that our country cannot sell it anymore. Again, this zeros in on reducing demand and prices for selling your junk car.
#4: Increased importation of steel
If you didn’t know, China is the largest producer of cheap steel that finds its way into almost all countries of the world. While more of this cheap steel is being imported into the country, the U.S. steel mills are not performing well as the demand for their products keeps dwindling amidst stiff foreign competition.
As a result, they’re not buying much scrap metal, and this partly explains why your junk car is still in your yard with nobody to purchase it at a fair price. Does this make you think of traveling full-time worth the savings?
#5: The Internet
Globalization of vehicle sales that’s being facilitated by the internet is stiffening the competition between local and foreign sellers of junk cars. Today, there are so many countries willing to export scrap metals into the U.S.
Considering that such countries have less legal regulations to deal with, they can dispose of salvage cars much more cheaply than many local sellers. As a result, this makes it difficult for you to get the best bargain for your wrecked vehicle here locally.
So, What Next?
Showing you that generally the demand for junk cars is going down doesn’t mean that you can’t dispose of your old car at a reasonable price. However, you’ll have to struggle to get the best deal. The ideal way to do it is to call all junkyards in the nearby cities and compare prices.
Focusing on the nearby locations is important because it lowers the cost of moving your old vehicle thus saving you more money. You’ll need to prepare a list of all your old car’s damages in advance because the buyers will ask you many questions as you shop around for the best prices. Don’t forget that the make and model also influence how much you can get from junking your used vehicle.
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