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Are You Getting Fair Value For Scrapping Your Car?

How much do you get for scrapping a car? For car owners who are keen on scrapping their old car, the value that they get back will naturally be of utmost importance when deciding which vehicle scrapping dealer to work with. Naturally, from your point of view, the more money the merrier. However, you should first find out what is a fair price for the vehicle, a bottom line of sorts. 

Deprecation and Wear & Tear

As a general rule of thumb, the longer you wait to scrap your car, the lesser compensation that you should expect to get in return. Similar to how businesses have to depreciate the value of their assets in accounting, the value of your car drops to compensate for wear and tear imposed upon it. Additionally, when newer car models and designs are released, older vehicles are naturally phased out. A consequence of which is a sharp decline in the value of the old automobile. 

If you have performed consistent maintenance and upgrades over the lifespan, then it is possible that the rate of depreciation would have slowed down. However, this is not to say that you should definitely try to conduct repairs just before you scrap the car in order to bump its value. Often times, when such risks are taken, the expense incurred in repairing the car ends up being more than the incremental increase in price offered for the scrap. 

Market Value

The price offered by car dealers will vary greatly depending on the supply and demand for your car model in the given year. If you are fortunate the market in the given year will favour you and thus accord a higher value for your car. Studying and being aware of the trends in both supply and demand for your car model can be critical to getting a great price. 

Information on market value can be combined with depreciation rates in order for you to calculate an estimated optimal price and time to sell your car off at. 

Getting A Fair Deal

Beyond prices offered by car dealers, a couple of other factors should be considered when choosing your preferred dealer. 

Firstly, you should be wary of any offer that comes with prohibitive conditions and exclusion clauses. These terms may tip the scale and make the offer completely lopsided against you. 

Secondly, you should find out if additional services such as car towing is included in the offered price. If you choose a dealer who operates on the opposite side of the island due to seemingly low price, then you may have to incur the cost of transportation to and fro from the dealer’s shop. 

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