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The Kelley Blue Book value you get is only going to form part of the offer you receive. This is especially true if you’re selling to a junkyard, as they put little value on the vehicle’s resale value and will be selling it off for parts or scrap. There are several factors that salvage companies may use to determine the value of the vehicle, including:
If the dealer is going to buy your car to part out or sell for scrap, the current value of the metal will form a major part of the car’s value. They’ll look at aluminum, alloys, copper, steel and other metals on the car that they can then turn around for extra cash. The scrap metal will be recycled into new car parts and other items. The value of scrap metal changes daily, so the value of your car’s metal will rise and fall.
The shop also has to consider the cost of labor for whatever they’re doing to the car. Removing the car will require paying a driver. Dismantling it requires paying mechanics or a demolition crew to pull out valuable parts, test them, and the like. There are also disposal costs for things like oil, grease, brake and transmission fluids, coolant and gasoline, which all require careful handling.
If you have the skills to do so, it doesn’t hurt to remove all the fluids yourself before turning over the car, to save money. Don’t dive into such a thing, however, if you don’t have the knowledge to do so. Some of those fluids can be dangerous.
All these issues cost the salvage yard money, and that will lower the value of their offer.
If you’re driving the car to the salvage yard yourself, this may not be an issue. If the company is coming to remove the vehicle themselves, there could be costs associated with doing so because it will require a tow truck or flatbed. These trucks have to be maintained, the drivers must be paid, and the like. Mileage will be a factor as well. It’s a good idea to ask the junkyard or salvage company when you call them what the removal costs will be.
Once again, this essentially comes down to the title. If you have a title, there may not be any legal issues to deal with at all. If not, the salvage yard may significantly reduce the offer they tender, if they tender an offer at all. Getting a new title assigned can be very costly and time-consuming, and time is money.
There are also some important mistakes to avoid when you buy a car. First, be sure that you sign a release of liability, which can protect you in case the car is resold and the new owner gets into trouble. Usually, this form is attached to your title, and you can tear it off, fill it out and send it in to the DMV. Second, don’t sign over the title until after money changes hands. If any company tries to get you to do so, that’s a red flag — after all, once you sign the title, they own the car!
Beware of special offers or vouchers like trips and timeshares. These are other red flags. Think twice about donating your car, because its value as a tax deduction is questionable at best. Finally, get everything in writing. Any offers or agreements you make should be in writing and signed. This will protect you.
We’re ready to trade junk cars for cash in Atlanta. If you’re ready to get cash for your old car, we’re ready to help. Feel free to explore our website and see how we work, and then get in touch with us to get a fast offer and cash for your Atlanta junk car today.