How a Nation of Old Car Owners is Managing to Turn a Profit

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(Newswire.net — March 20, 2017) — When the time finally comes to say goodbye to that old trusty car, owners of old vehicles may finally have found a better way to get rid of them. One of the biggest challenges with owning an older car is what to do with it when it finally becomes necessary to upgrade—after all, nothing lasts forever, and you can only keep a beater together with body filler and electrical tape for so long. At a certain point, cars just become too unsafe or inefficient to keep on the road, no matter how precious or “part of the family” they’ve become. Once the decision has been made, the question then becomes what to do with a vehicle that nobody wants to drive anymore?

People tend to be more and more cautious with their money these days, which means that they don’t want to throw away anything they might still hold some value. Motor vehicles are no exception—in fact, you’d be hard-pressed to find anyone out there willing just to give their old car away, even if it’s no longer safe to drive. Who on earth would buy a vehicle that doesn’t belong on the highways anymore? Well, there are quite a few people, as it turns out.

Of course, it’s common knowledge that many new car dealerships will offer to take old cars in exchange for a discount on one of their products. Most major dealerships run a campaign a couple of times a year and is known as a push, pull or drag sale. Owners of junkyard cars can rake in a few thousand dollars this way—generally, much more than their hunk of scrap is worth elsewhere. The only catch is that they’re obligated to put that money towards the purchase of a brand new car, which on average sells for over $30,000.

Alternatives to Trading In

For many, the high cost of a new car can rule out push, pull or drag sales as a viable way to get rid of old vehicles. However, there is an industry developing to accommodate people for whom these sales aren’t an option—several companies exist that will buy an old car from just about anybody, no matter its condition. Some of these businesses are specific to certain local areas, whereas others operate nationwide. For people out there thinking, “I’ve got to sell my car for cash no matter what”, this makes a much more convenient solution.

Why would a company spend money on a car that is only good for the scrapheap? In many cases, it’s simple: they want to turn old cars into scrap metal, and they’re willing to pay owners a small fee for the raw materials. In many of these cases vehicle owners aren’t likely to see much in the way of money for their contributions. Most places buying cars for the scrap heap are thinking exclusively about their bottom line, and won’t pay a cent more than they need to for a vehicle, even if parts of it are still functioning. However, there are companies out there whose policies are to offer market-based prices for the vehicles they purchase.

One piece of essential advice for owners who are thinking about selling their old or damaged cars is to be careful about how the companies assess the value of a vehicle. Selling to a company that doesn’t disclose that information is almost always a bad idea and can result in an owner being taken for a ride. Any reputable company proposing to buy a used vehicle should base their decision on several factors, including but not limited to the present condition of the vehicle, as well as its year, make, model, trim, mileage, location and current market value.

With governments across the country tightening regulations for what makes a car legally drivable, anybody with an older vehicle would be well advised to keep an eye out for companies who will offer to purchase it for a reasonable price. With cars becoming an increasingly expensive and unstable investment, looking out for ways to make some extra money when selling an old motor vehicle can be an important part of sound financial planning.