Reasons to Scrap Your Car over Selling It
Many people are faced with the decision of whether it is time to scrap their old and broken down car or try to sell it to the highest bidder.
While there are many reasons to sell it, it is not the only option worth considering. For many situations, the better option may be to contact a junkyard and have them take it off your hands.
Below, we will discuss some of the benefits of doing that and why it may be a better option than trying to sell your vehicle yourself.
When the Value of the Car Drops below the Cost of Repairs
From a purely financial perspective, the simplest way to determine when it is time to scrap your car over selling it is to identify when the value of the vehicle drops below what you would get from a junkyard.
The minimum amount that you can salvage from your vehicle will always be supported by the value of the parts in your car. Sometimes, the cost to repair some of those parts will exceed the amount that it is worth to save your vehicle. This is the point where scraping your car may become a better option.
When a Repair Becomes Too Costly
This will typically occur in older cars. For example, a 1997 Toyota Corolla will have some resale value attached to it, even if it is not in the best condition. However, once the transmission goes, the cost of repairs may exceed the value of the actual car.
You can expect to sell a working car like this for around $1,000. On the other hand, it will cost upwards of $1500 to replace a broken transmission.
You will never be able to sell a car that is only valued at $1,000 when it will require more than that amount to get it road ready again. Even if the repair cost is equal to the value of the vehicle, it will be difficult to find a buyer when you consider the cost of the many repairs that will come as more time passes.
Scraping the Corolla
In this example, it is a better option to scrap the Corolla. By doing this, you can avoid having to pay to have the transmission fixed. It will not only save you money in the short-term, but it also allows you to get some money for the car when no one else is going to buy it from you.
If Your Vehicle Is Not Passing Emissions
Depending on the laws of your state, you can be required to put your car through emissions testing in order to renew the registration for it and continue driving it on public roads. Different states have different requirements; however, they all have a set of standards that vary in strictness.
In the state of Oregon, vehicles must be able to pass an emissions test in order to receive an updated registration tag for it. In addition to this, all vehicles that are new to the state of Oregon will have to pass this emissions test as well.
The state of Oregon has slightly different emissions standards depending on the area that you are in. In Portland, all vehicles that are made on or after 1975 must be able to pass emissions tests. In Medford, any vehicle that is less than 20 years old must be able to pass emissions.
These emissions tests apply to all vehicles including cars, vans, trucks, buses and motorhomes and all hybrid vehicles. If your vehicle falls within these guidelines, you will not be able to register your car in the state of Oregon until it passes emissions inspections.
Consider the Cost to Pass Emissions Testing
The point of all this is that in some cases, especially in older vehicles, you may be hit with expenses that will be required to put into your car in order to get it to pass the emissions tests. Depending on the type of vehicle you have, these costs can be more than you may be prepared to pay. If the cost is too great, it may be time to consider taking your car to a salvage yard.
This is a common situation that we see. An emissions test is generally not thought of as a potential problem for car owners. It isn’t until they are hit with the bill that they realize they may have been better off scrapping the car.
This problem is not exclusive to the state of Oregon. No matter what state you live in, you will have to follow a specific standard of emissions testing in order to be able to continue to drive your car.
If You Want to Avoid the Hassle of Selling Your Car
The process of selling your car can be a lengthy and time-consuming endeavor. If you want to sell your car privately, you will have to list it where people will see it and field countless inquiries about it, both from people that are serious about buying your vehicle and from others that are just wasting your time.
You will also have to show your car to people that are interested in buying it. If you’re lucky enough to find someone that is interested in it, you will then have to go through the process of negotiating and agreeing to a price.
All in all, the process of selling your car is not an easy one. It is especially difficult if you are selling a car that has low value. The amount you would be selling it for may not be worth all the time it will take to complete the sale from start to finish.
Selling to a Dealer
The other option is to sell it to a dealer. The advantage of this is that you won’t have to spend all that time looking for a buyer yourself. The dealer will only be interested in the car if they feel they can resell it for a higher value.
Depending on the price, they may not be interested in your vehicle at all. It will entierly depend on the valuation they place on the vehicle. If they can’t sell it at a higher price point, they will not buy the vehicle.
Even if they do have some interest in your vehicle, they would only give you an offer that is below the market value of it. This is the only way they will be able to resell it at a higher price.
Is It Worth My Time?
No matter what route you choose, the process of selling your car is not a pleasant one. Consider how much time you have to invest in this process and weigh that against the amount of money that you will make from the sale of it.
Between dealers trying to undercut your asking price and private buyers constantly negotiating lower prices, you should be prepared to sell your car for less than what you feel it is worth no matter what price point you are starting at.
The Easy Solution
For many people, they would prefer to save all that time and simply take it to Frad’s Auto Removal. They will still be able to earn a decent amount of money for it and more importantly, they will save themselves hours of time.
If You Need Money Quickly
As we explained above, the process of selling a car is a lengthy one. If you are in a situation where you need to come up with money quickly, scrapping your car may be the only option.
This is not advisable if you have a car that you can sell for a few thousand dollars; however, if you are driving a junker car, it may not be such a bad idea.
It always depends on your circumstances, but it may be the best decision financially to scrap your car in order to receive the money a lot quicker.
You Can Save Money on Your Last Insurance Payments
A lot of people save their old cars for emergency purposes. They pay for the emissions testing, the registration each year, and the insurance every month but they never use it. This is a poor financial decision. As this backup car sits there being unused, it is taking up space and costing you money.
You can unload all of these unnecessary charges and make a few bucks for yourself by scrapping it. If you have an old car that is not being used at all, you are just wasting money by having it sit there.
It’s the Easiest Way to Remove a Car That Doesn’t Run
Whether it is because of engine trouble or another reason, it is going to be pretty difficult to sell a car that doesn’t run. You are not only going to have to sell it at a heavy discount, you are also going to have to find someone that is willing to buy the car knowing that it will require a lot of time and money just to get it running again.
Instead of dealing with all this, you can contact us at Fred’s Auto Removal to have your broken down car removed for free. We will not only give you cash for your car, we will also tow it for no cost.
This will save you a lot of time and money on the towing expenses. Towing the car to a junkyard or paying for it to be towed to a repair shop can cost over a hundred dollars. You can save this money by having Fred’s Auto Removal do it for you.
It’s Time to Scrap Your Car
Fred’s Auto Removal service works with salvage yards and used car dealers throughout the Portland area to match you with the perfect canidate for your vehicle. This will help us bring you the best possible return for your car that you can find.