A few years ago cashing in a junk car would net you enough for a weekend road trip. Today you’d hardly get enough to pay for a hotel room. What gives?
Car junkers (including Edmonton Salvage Company) didn’t suddenly start taking advantage of you. We’re facing a big problem: the price of scrap metal has plummeted in the last two years. The cars that auto junkyards buy that have reached the end of their life are stripped of all materials and fluids and crushed, with the remains sold to a local shredder. We (and other used and scrap car buyers) can’t get nearly what we could previously for that same type of vehicle. And it’s a lot of work to tow a car, strip it and crush it believe it or not. Therefore the price we are able to offer to buy cars has reduced greatly.
But why are scrap metal prices suddenly so low even when compared to last years scrap car prices? How does that affect the junk car industry? And what can you do to ensure you get the highest value possible for your junk car? We have the answers.
HOW DOES THE PRICE OF METAL AFFECT THE PRICE FOR YOUR JUNK CAR?
According to an article on ETF.com, the average car contains 2,200 pounds of steel. The average truck contains 3,200 pounds. That accounts for about 58 percent of the car’s total weight. There’s also approximately 290 pounds of aluminum in the average vehicle.
When a car junker company purchases your vehicle, what they’re really buying is the value of that scrap metal. Steel, aluminum, copper and other metals can be sold for cash to scrap metal dealers. Those scrap metal dealers, in turn, sell the metal to manufacturers who recycle the metal and turn it into new cars, building materials, wire, smartphones and other items we use every day.
The price for scrap metal changes based on demand. If car manufacturers aren’t making many cars, the price of steel and aluminum drops. If builders aren’t constructing new homes and apartment buildings, the price of metal also drops.
Right now demand for metal is low and supply is very high. That means prices are low. In fact, the price of steel has fallen from $480 per ton in February 2015 to $50 in early 2016.
