Junk Car Prices Are Still Going Up in 2022

You’re probably used to hearing people talk about rising prices by now, but what if you could benefit from the trend? If you have a vehicle that’s damaged, wrecked, or inoperable, you might be able to make some cash by selling it as a junk car. Even better, you could end up making way more on the deal than you could have just a couple of years ago. Companies like Orthodox Auto are eager to get their hands on cars in almost any condition, so the process of selling your junk car shouldn’t be complicated at all.

The question is, why would you be able to get such a good deal for your junk car now, compared to two or three years ago? Several different factors have influenced the rising prices of scrap metal, car parts, and even non-running vehicles that just need a few repairs. Let’s take a closer look below.

The Pandemic Has Affected the Auto Industry from Every Possible Angle

Even though junk cars may be at the tail end of the average car’s life cycle, they’re still affected by many of the same circumstances as automakers, new and used car dealerships and factories that make car parts.

Here’s how it works: to start with, there were all kinds of shipping and manufacturing delays. That resulted in a shortage of new cars, so people started buying used cars instead or repairing the ones they already had. Plus, factory closures resulted in a shortage of new car parts being made, so mechanics and used car dealerships had to rely on used car parts.

This has increased demand for not only functioning vehicles, but also car parts. In some cases, people are deciding to buy a car with a salvage title (which is generally considered a “junk car”) and fix it up, just so they’ll have a working vehicle. All of these factors led to increased demand for cars and car parts, and if people can’t get them new, they have to get used ones instead. It just so happens that junk cars are a major source of both, hence their rising prices.

Why Is Demand for Cars so High?

If demand had stayed steady, we might not be seeing the current price hikes. Manufacturing and shipping delays would have affected them for sure, but probably not to this degree. Once again, though, it’s easy to identify exactly how the pandemic has contributed to fluctuations in demand. For example, lockdowns created a rubber-band effect in car sales; not many people were purchasing vehicles for several months, but the numbers rebounded with a vengeance once restrictions started lifting.

Another trend was that people started buying cars after accidentally saving thousands of dollars during the lockdowns. Since they weren’t spending money on social activities, travel, or similar things, they suddenly had extra cash – and apparently, many of them decided that a vehicle was the perfect way to use their surprise savings.

What Influences the Price of a Junk Car?

Aside from things like pandemics and worldwide production delays, the value of junk cars largely depends on the cost of steel. However, there are a few other factors that could affect the final selling price of your junk car.

• The cost of new metals – If metals like steel and aluminum are cheap to buy new, manufacturers won’t be trying as hard to find inexpensive scrap metal. If the price of new metal is on an upward swing, though, scrap metal will look a lot more appealing.
• International trade – Scrap metal in the US comes from overseas as well as from our own backyard, so global trends in the import and export of scrap metal affect US prices as well.
• The location of the scrapyard – Believe it or not, different scrapyards could give you different prices simply because of their location. This is because they’ll have to transport the scrap metal to the buyer, and if they’re a fair distance away, they’ll have to lower the price they pay you in order to offset transportation costs.
• Time of year – Automakers and construction companies are generally busier during the spring and summer, so that contributes to a yearly rise in demand for scrap metal. Higher demand usually means a higher price tag, so you’d do best to sell your junk car in the summer.
• The size of the car – The bigger the car, the more scrap metal the junkyard will be able to get from it, and the more you’ll be paid. It’s math.
• The quality of the metal – If a junk car is rusted out, corroded, or covered in residue, it probably won’t be worth as much as a newer or cleaner vehicle. Rust obviously compromises the quality of the metal, and the scrapyard will have to pay to clean the residue off before the material can be recycled; this obviously will be taken out of the price you get paid, not out of their bottom line.

What If You Don’t Want to Sell Your Car as Scrap Metal?

Some junk cars still have potential, even if they won’t start. As mentioned earlier, there are people looking for fixer-upper vehicles that could run for a few more years with the right repairs.

You should also consider the make and model of your vehicle: does it have any value as a passion project? If you were willing to spend a little time finding an online buyer, you might be able to make significantly more than a scrapyard would pay.

There’s also the option to sell to a used car dealership, but they tend to be pretty picky. Not only would your car have to be in fairly good shape, but you’d also have to jump through all kinds of hoops before they actually accepted the vehicle. Still, given the right circumstances, this is still a profitable option for some people.

No matter what your junk car looks like, though, there are plenty of buyers out there who would love to take it off your hands.