5 Reasons How the Pandemic Contributed to an Increase in Junk Car Value

Junk vehicles have increased in price since the beginning of the pandemic and now is the perfect time to sell them before the market crashes. Cash for Cars, a junk vehicle pick up service based out of Philadelphia, is one of many services that offer top-dollar for your junk vehicle. They offer free instant cash offers and, upon accepting their offer, they come and tow your vehicle away, leaving you with a nice sum of money in return. 

But why the surge in the value of junk vehicles and what does the pandemic have to do with it?

There are several reasons that the value of junk vehicles has gone up in the last couple of years, especially in 2021. The worth of these junk cars has increased in double compared to what they were selling for prior to 2021. Global supply and demand, the shutdown of mining operations, new car production’s being stalled, a rise in auto parts theft, and more have contributed to the surge in prices, and while all of these situations are impacting the market today, it could crash and burn tomorrow. 

In this article, we go in depth over some of the reasons why junk removal services are offering more for your junk or totaled vehicle. 

Metal Shortages

When it comes to junk vehicles, catalytic converters are the costliest and most sought-after part. These parts are made from expensive metals: platinum, palladium, and rhodium. Unfortunately, there has been a global shortage of these metals which has caused the price of them to rise. In turn, the price for your junk vehicle has also gone up.

The metals inside the catalytic converter, though in small quantities, are extremely valuable and have a high demand, thus so does your catalytic converter. This isn’t true just for junk vehicles but for new vehicles as well as these parts have caused new vehicle prices to increase as well. 

The market is volatile, though, and it’s always best to take advantage of it when you can. While your junk vehicle may be worth a lot today, tomorrow it could be worth a few hundred less. 

Microchip Shortage

Similar to metal, microchips are also at a shortage which means that the production of new cars has suffered and has come to a stop. Modern cars have several systems that have microchips integrated into them and, thanks to the current shortage, car manufacturers are left without enough microchips to continue production on new vehicles. 

It’s a matter of supply and demand: the supply of new vehicles is short while the demand is high and when people who are in the market for a new car can’t find what they’re looking for, they often turn to buying used or pre-owned vehicles instead. 

This, in turn, leads to fewer cars being towed away to the scrap yard. 

Auto Parts Theft

Those with junk cars lying around in their yard may have noticed that their junk vehicle no longer has a catalytic converter. 

That’s because, unfortunately, there has been an increase in the theft of auto parts, especially of these valuable parts. Since catalytic converts are so pricey and the metals used to make them are currently in a shortage, thieves have noticed and have decided to take advantage of this. 

In addition to the price of these parts, they’re also pretty easy to remove from a junk vehicle, and thieves know that. This has caused the theft rate to go up as much as three times. 

Since catalytic converters increase the value of a car, without them, your junk vehicle may be worth hundreds of dollars less. 

Car Auctions

Used car auctions are another reason that prices have gone up. Any vehicle put up for auction immediately skyrockets to a surprising amount. Despite the vehicles being used, prices for them are at an all-time high thanks to the increase of cost in scrap. 

Even outside of these auctions, used car lots and even private sellers of used cars are also benefiting from the increase in prices. 

Since there’s so much competition with used vehicles, junkyards and junk car removal services have had to raise the prices they pay for junk vehicles, too. 

Inflation

Everything has gone up in price. Medicine, groceries, gas prices, and everything else you can think of. The inflation of these goods and services have decreased the value of a dollar. While inflation is nothing new, the pandemic has caused it to grow quickly. Cars have, unfortunately, been one of the most affected goods influenced by the inflation.  

Conclusion

There are several determining factors as to why the price of junk cars have increased so suddenly. The above reasons are some of the most prevalent but there are, of course, other factors as well. In the end, the market is always changing. Prices can go up or down at a moment’s notice. It’s best to take advantage of the market when it’s in your favor. With the value of junk cars having increased so exponentially over the last year or so, now is the perfect time to take advantage of the used car market and sell your car today. 

CashForCars.io will offer you top dollar for your junk vehicle. Just answer some questions about your vehicle through their online questionnaire or give them a call and discuss it with a live person. The questions asked are basic: the make, model, and year of your car, as well as the condition your vehicle is in and the zip code where your vehicle is located. 

Once you finish with the questionnaire, you will receive an instant cash offer. You can accept or decline it, but accepting it will prompt you to give some additional information. Once everything is agreed upon, they will dispatch handlers to the location of your junk vehicle, inspect it, and then an exchange a check in return for the keys and title of your vehicle. 

Remember, what you might get for your junk vehicle today, you aren’t promised tomorrow. The prices can fall at any time, so it’s important that you take advantage of the market while you can.

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