Letting your junk car rust away in your garage is almost like throwing away cash, especially now that the price of used and rundown vehicles has been increasing due to pandemic-induced inventory shortages and an unprecedented spike in car part thefts.
Further driving up the price of used and junk cars is the positive growth in the construction and auto manufacturing industry. Because scrap materials from rundown vehicles have value in these industries, dealers nowadays are willing to pay above average in an attempt to fill their lots.
Take note that the growth in the construction sector, which last year took a beating due to nationwide shutdowns and lockdowns, is expected to continue until the summer. This means that you can sell your used or junk car at a more favorable price because of the increasing demand for scrap materials.
But take note that during colder months, the construction sector experiences cyclical contraction, which of course affects the price of scrapping materials from junk cars. For this reason, now is the most favorable time to sell your dilapidated vehicle that is sitting in your garage for years.
Thefts Driving Up the Price of Junk Cars
The sharp increase in catalytic converter thefts over the past several months is also driving up the price of junk cars.
A catalytic converter is an exhaust emission control device in your car that converts toxic emissions such as nitrous oxide and carbon monoxide into less harmful ones. Meanwhile, this car part contains palladium, a precious metal that is more valuable than gold, costing around $3,000 per ounce as of this writing.
Unfortunately, thieves know the economic value of palladium found in large amounts in the catalytic converters.
Post-Pandemic Economic Growth
As the economy is slowly reopening after months of nationwide shutdowns and lockdowns, the auto manufacturing industry is seeing some growth. However, the sector is faced with increasing metal prices, especially palladium and rhodium, and so the demand for scrapping materials from junk cars is also rising.
And with the increasing price of metal prices means more favorable deals for junk car sellers.
From a buyer standpoint, now is the perfect time to sell your rundown vehicle because the “unusually” high price is only seen as a temporary phenomenon caused by the pandemic and the recent shutdowns. Once the supplies return to normal, prices will fall as well.
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