improving the performance of high-mileage cars

Junk Or Collector's Treasure? Negotiating A Car's Junk Value

9 June 2020 by Hugh Lowe

Cars begin to depreciate as soon as you drive them off the lot. So that 1995 car sitting in your yard should be worth about nil right now. Or it could be worth more than you paid for it new. Cars begin appreciating after 25 years.

When negotiating with those who buy used junk cars, sellers often overlook the collector's value of the car and its parts.

Mint or Poor Condition 

Getting money for junk cars is easy. Ensuring you do not give away a car with future collector's value for the price of scrap steel per ton requires market research. To a collector, one part could be worth more than steel.

Consider the price of the beloved Volvo 240 (1975–1993). A 1975 Volvo 242 is listed for $10,000, but in fair condition, $3,100. In poor condition, it may not be worth fixing up. But what do you do with an end of series 1993 Volvo 240? If it is unsalvageable, scrap it, but when negotiating, keep in mind the future appreciation of the parts. 

Rate of Appreciation

The Volvo 240, a nostalgic classic, is destined to appreciate, but you could wait 5–10 years for its value to grow. For fast appreciation, look to limited editions. Consider the resale value of the BMW 1-Series M Coupe—6,300 were produced. For a model with less than 30,000 miles, Car and Driver estimates a price tag of $60,000, more than its 2011 base price.

Parts vs Whole Car Value 

Even if the car is unsalvageable, before negotiating with a junk car buyer, know the worth of the car and its parts. A junk dealer disposes of unsalvageable cars in three ways:

Sells the parts 

Good tires and batteries are worth money. On newer cars, GPS and other electronics can be sold in the secondary market. 

Sells for scrap value 

When a junk car dealer offers you a price per ton for your car, you are basically being paid for the steel—the largest material component in a car. The average vehicle has about 200 pounds of steel. 

Sells for recycling value

When metal prices are high, the value of used cars increases. The average car has about 50 pounds of copper, which costs about 10 times more per metric ton than steel. Platinum, palladium, and rhodium are other precious metals found in circuit boards and catalytic converters.

Whether or not the whole is worth more than the parts requires some research into the market value of your car and its parts. The current and future collector's value could substantially raise the value of your junk cars.

Want to buy used junk cars? Or interested in learning your car's value? Talk to a local expert to learn more.

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