So, you’ve finally decided to junk that old beater car you’ve had sitting in the garage for the past several years. You figure you’ll at least get a few hundred dollars for it. But after taking it to several junk dealers in the area, you find that the most anyone is willing to pay for it is about $150. A few years ago you would have been able to get $400 for the same car, easily—so why the difference?
As a premier junk dealer that offers cash for cars in Fort Lauderdale, FL, we get asked this question a lot. The truth is that, just like any other trade operation, the price for junk cars fluctuates based on the steel market. Supply and demand, the economy and many other factors can affect how much you get paid for your junk car. You maybe don’t notice it as much since you are one extreme end of the buying/selling spectrum, but there are forces at work affecting the prices of junk cars that you may not even think about.
Gas prices
When gas prices go up, the cost of transporting goes up, and those increases must be compensated for in some way. For example, if it costs more to transfer steel to refineries because of high gas prices, an adjustment must be made to cover that increased cost. Either you will be paid less for your junk car, or the person buying the steel will be required to pay more. How saturated the market is will determine which end of the buying/selling spectrum is stuck footing the bill for increased gas prices.
Supply and demand
Supply and demand has always been the driving force behind steel prices. If there is a low demand for steel, the price you are paid for your junk car will go down. If the market is oversaturated with steel, however, the price you are paid for your junk car will go down. Currently, the demand for steel has dropped for several reasons. Simply put, the U.S. economy as a whole is not doing as well as it could be. People are buying less, which means there is less need for raw materials (such as steel) to make consumer products. Less demand means an oversaturated market, which drives steel prices down.
Exporting
In previous years, the U.S. has made money by exporting steel to other countries for their own manufacturing purposes, particularly China. In a poor worldwide economy, however, China is producing fewer goods because other countries are no longer buying those goods at the same rate as in previous years. Therefore, the demand to export steel has decreased as well, which affects the amount of cash you would get for your junk car.
Although you may not get as much as you hoped for in cash for cars in Fort Lauderdale, FL, you can still be confident that we will offer you the best possible price. Visit Junkyard Dog today to learn more about how much we can give you!