Used cars are generally known for being a good option when someone’s budget is on the lower end of things. Unfortunately, that’s not necessarily the case these days. There’s a global chip shortage ongoing, which means the prices of used cars have undergone a monumental increase. The only people benefiting from this at this point? People like you who have junk cars lying around!
How long has your junk vehicle been in your driveway? You probably haven’t bothered figuring out how to sell it, or you just haven’t had the time. As previously mentioned, scrap metal value has risen by quite a lot these days. Your used, useless vehicle now has a great use: it can become quite the wad of instant cash!
The Chip
Used cars aren’t doing so well, but junk cars are. What chip shortage is there right now that’s making junk cars so valuable all of a sudden? Semiconductors is a computer chip so integral that manufacturers have slowed or stopped production altogether until the shortage is no more. There’s a much higher correspondent demand worldwide, which is why junk cars have become worth more these days.
Scrap Metal Prices for 2022 and 2023
Experts are currently saying that scrap metal prices going up are directly connected to the significant increase in the used car market demand alongside the global chip shortage. There is currently no end in sight for the global chip shortage, which means for 2022 and 2023, the scrap metal prices will likely go up some more.
As of March 2020, the trade-in process of steel was within the $500-$800 range. This year, as of July, the trade-in price has gone all the way up to $1800. Scrap metal prices weren’t expected to decrease by the experts of mining-technology.com “until at least 2022.” CBS News recently released an article that says there’s a possibility that used car prices will keep going up, at least for 2023:
“A storm of headwinds, including the global semiconductor shortage,” Oxford economist Mahir Rasheed said, “expiring fiscal support, and a spending rotation towards services will preclude sales from returning to their early 2021 pace.”
Get the Most Value Out of Selling Your Junk Car
There are four steps to take in order to get the most out of selling your junk vehicle.
- Determine the value of your junk car between 2021 and 2023
- Get the pertinent paperwork ready
- Have at least three offers at hand
- Have your junk car taken and get your payment
When you sell your junk car to a reputable car lot, there will be additional benefits aside from the cash. This includes:
- Convenient process
- Free towing
- Quick service
Make sure to do your due diligence and research the best possible offer.
Conclusion
Due to the global chip shortage, used cars’ prices aren’t what they used to be. However, junk cars are worth far more than they used to be! Since there’s no end in sight just yet for the global chip shortage, it means the prices of scrap metal, like junk cars, will continue to increase.
Trying to find cash car lots to sell the high-value scrap metal of your car? Sell your junk car to Cash Auto Salvage today! We’ll give you cash in exchange for your junk car—win-win!
