2021 saw an unprecedented rise in the scrap value you can get for your junk cars. They are double—literally, double—what they were a year ago. This kind of shocking increase rarely happens, so you don't want to lose your chance. Numerous complex circumstances have come together to double your vehicle's cash value. These include the following factors:
● Global supply and demand
● Mining operation shutdowns
● Increased auto parts theft
● Halted new car production
● And more
The above circumstances all align today, but they could fall apart tomorrow. There will come a day soon when these prices will crash, and you want to be holding the cash from selling your junk cars when that day comes. Do you wonder why places that buy junk cars are suddenly offering more money to buy your old, damaged, or accidented car? Find the answers below.
Precious Metal Shortages Drive All-Time High Prices
Pound for pound, the catalytic converter is the most valuable part of any junk car. Inside are precious metals that go for high prices. Global shortages of these metals have driven prices up, meaning you get more cash for your junk vehicle today.
Catalytic converters carry so much value because of their platinum, palladium, and rhodium content. These metals have always demanded top dollar, so even the tiny quantities inside your catalytic converter carry a high price tag. The metals convert certain chemicals in your exhaust to minor hazardous forms. The delicate honeycomb patterns of these metals provide those chemicals with a surface that catalyzes their reactions.
There's just no other way around this problem, so expensive catalytic converters continue to be used in every vehicle worldwide. Not only are your used catalytic converters selling for more, but this impacts new vehicle prices as well.
It might not seem much compared to the price of a new car, but everything trickles down. Increased demand for used vehicles drives up what junk cars sell for, meaning right now is the best time to sell your junk car. The metals in your catalytic converter might never be worth this much again. Both rhodium and palladium are sitting at record prices, and platinum is at a six-year high. Supply shortages are the leading cause, and they'll likely level out again soon.
Short-term market instability means prices are changing day by day. Junk cars worth $500 today could be worth $300 tomorrow, so the time to act is now. Prices can't stay this high forever and you have no guarantee that you can get the same dollar value the next day.
If you have any junk cars of any type, the time to take advantage of soaring precious metals prices is today.
Microchip Shortage Grinds New Car Production to a Halt
There's a complex balance between the supply of new cars and the demand for old ones. When people can't find new vehicles, they buy used or pre-owned ones. An increase in the demand for used cars limits the need for new cars and affects the number of junk cars headed to the scrap yard.
Modern cars implement countless systems that require microchips. Sadly, there's a major microchip shortage going on. Without these microchips, manufacturers can't put out new vehicles; this means that you'll likely be leaving empty-handed when you walk into a dealership to get a brand new automobile. There's a significant backlog of orders for almost every vehicle on the market today.
The demand for used cars is driving up prices for junk cars. There are a lot of vehicles that sit on the fine line between the two categories. Competition drives up prices, and so junk car prices are at an all-time high. It's important to note that this trend isn't going to last. The majority of the microchip shortage is caused directly by the ongoing pandemic. Once those factories get comfortable again, they can quickly meet the backlog of demand.
If you have a junk car sitting in your yard, it could be worth more today than it ever will be again. Once new vehicles are readily available, the competition for older vehicles will plummet. Your $500 junk car today could be around $250 in some months from now. Get an instant quote today and take it before it's too late.
Rising Thefts Remove Most Valuable Parts From Junk Cars
If you have left your junk cars lying around instead of taking advantage of their value, somebody else might already have done so. A sweeping wave of catalytic converter thefts is removing the most valuable parts from many junk cars.
Catalytic converters are fetching record prices, and criminals have noticed. They're easy targets for anyone that can shimmy in under a vehicle, hacksaw in hand. These criminals know what they're doing, and they do it well, as evident in theft rates tripling in reaction to sky-high precious metal prices. Without the catalytic converter, your junk cars could be worth substantially less. If you once thought you could sell your junk car for $500, you'll have to think again. You lost all bets the instant that catalytic converter was stolen.
Take your vehicle to a junkyard near you today. If you don't want the cash surplus that market fluctuations have given you, there are criminals out there willing to take it.
Used Car Prices Skyrocket Competition for Older Vehicles
If you haven't been to a used car auction in the past year, you might not believe what's happening there. Each vehicle up for auction instantly shoots up to a shocking dollar amount. These prices are at all-time highs, and that's leading to higher scrap value.
Used car prices are at all-time highs on and off the auction block. No matter where or how you're buying a used car, they are more expensive than they were a year ago, thus increasing competition for old cars.
With more potential buyers for every single older vehicle out there, junkyards have had to increase what they payout for junk cars. What would have been $250 a year ago is $500 today, but that quote won't last for long.
Ultimately, junk cars are up in value because used cars are up in value because of lowered new car supply. So once that supply kicks in again, prices of both used and junk cars are going to fall back down to their typical rates. Junk car owners can take advantage of the market, find a junkyard near them and sell today. Nobody can anticipate when used car prices will drop again, and any new updates will affect prices instantly.
Decreased Dollar Purchasing Power Gives Junk Car Owners the Advantage
Due to the pandemic, inflation is rising by the day. That means that each dollar you own today is worth a bit less than it was before. This process is always going on, but the rate is fast increasing.
Prices are up across almost every category of goods and services. Cars are one of the most severely impacted areas due to various factors. It follows that the same car will get a higher dollar amount than it did a year ago. And that's just what's happening. New cars, used cars, and junk cars are now selling at higher prices. The best time to take advantage of these prices by selling your junk cars to a junkyard near you is now.
By selling your junk car today, you earn more money to be spent on goods like groceries, furniture, clothing that aren't drastically impacted by inflation.
A Trustworthy Company Buying Your Junk Cars
You can bring your junk cars to Cashforcars.io to get the actual value of your vehicle and honest service. We always carry out title transfers to ensure you have no liability for the car. Contact us today to get an instant quote for your junk cars.