Believe it or not, your junk car could have accumulated value over the last couple of years. Even though junk cars don’t tend to age gracefully, the COVID-19 pandemic has caused junk car prices to skyrocket. In other words, if you can’t find someone who’ll make you a good offer on your non-running vehicle, it must be literally rusting to pieces. How can you find a buyer, though? One option is to simply search “cash for cars near me”, and see what comes up (getting multiple quotes is recommended). For instance, Orthodox Auto Company makes it easy for individuals to sell their junk cars with as little hassle as possible. Another option is to advertise your vehicle on Craigslist, eBay, or Facebook Marketplace; there are plenty of people looking for a vehicle that can be driven after being repaired, since that’s often cheaper than buying a used car.
Whatever you decide to do with your junk car, one thing’s for sure – you’ll get more money for it now than you ever could have. Why are prices for junk cars so high in 2022, though? Keep reading to find out.
The pandemic caused demand to fall and then rebound
COVID-related restrictions hit car dealerships hard, but once people were able to leave the house again, sales bounced back – and then some. As new and used cars became harder to find, people started looking for junk cars that they could fix up instead. In addition to that, used car dealerships rely on the junk car industry to supply them with parts. The busier they were, the more in-demand junk cars were as well.
More people decided to repair their vehicles after traffic accidents
Just like with so many other industries, the pandemic slowed supply for the junk car industry. All other things being equal, a lot of junk cars come from vehicles that are totaled in traffic accidents. Even though car crash statistics didn’t go down significantly during the pandemic, many people opted to repair their crashed cars instead of buying replacements. After all, it wasn’t just junk cars that were hard to come by; any type of vehicle got snapped up almost as soon as it hit the market.
There were production problems everywhere
Whether you’re considering the steel industry, semiconductor manufacturers, or shipping schedules, the pandemic caused delays and shortages all over the place. Since the auto industry was having a hard time keeping up with demand for new vehicles, this put a strain on the used car industry – and any industry that dealt in car parts, for that matter. Since new parts weren’t being made, everyone started scrambling to get their hands on used parts. Even if junk cars can’t be repaired, they’re usually still valuable sources of viable parts; everyone from mechanics to dealerships to individuals was suddenly interested in junk car parts.
More people were on a budget
Financial uncertainty loomed large for many people during the pandemic, and when that’s the case, buying a new car isn’t exactly a priority. Rather than buying new vehicles, a lot of people opted for repairing the ones they already had. This put additional pressure on the junk car industry; not only was it having a hard time getting enough inventory, but it was also trying to keep up with growing demand. Naturally, this also contributed to the rising price of junk cars.
Supply channel disruptions increased demand for used parts
You’re probably getting the big picture by now – trends in the new and used car markets affect the junk car industry as well. Between one thing and another, fewer vehicles were entering the used car market during the pandemic. Leasing companies realized that new cars were becoming difficult to find, so they slowed down vehicle turnover in their fleets. Then there were the car manufacturers, who started holding onto their service loan and demonstration fleets. These types of vehicles used to be a significant source of used cars, but now that they’ve dwindled, dealerships are turning to fixable junk cars and their parts to maintain a healthy inventory.
Factories closed all over the world
Semiconductors may be one of the crucial shortages affecting the auto industry, but car parts in general have become hard to find. Since so many factories closed for such a long time, this resulted in a shortage of many different car parts. The only alternative in many cases is to use recycled car parts, so automotive recyclers generally have all the business they can handle.
Hesitance about using public transport increased demand for vehicles of any kind
During the pandemic, it seemed like every other headline was warning people to steer clear of possible human contact; the fear of infection extended to the use of public transport. With buses, subways, and taxis being off the list, people started buying anything that would drive in order to get around. Since everyone had the same idea at the same time, though, it suddenly became harder to find not only used cars, but also junk cars and car parts. Those with junk cars to sell could make some easy money, especially if the vehicle only needed a few key repairs to get it back on the road. With supply chain disruptions still affecting the auto industry at large, this trend is still going strong.
Lockdown savings resulted in a surprise surge of car purchases
Even though a lot of people had pretty tight budgets during the pandemic, not everyone did; some of them ended up accidentally saving thousands of dollars after months of no restaurants, vacations, or social gatherings. As it happens, some of these lockdown savers decided to use that money to buy a car. Taken together with everything else, this trend just added to all the other factors to drive up prices for cars and their parts.
The takeaway If you have a junk car to get rid of, there’s no better time to sell it than now; no matter what condition your car is in, you shouldn’t have any problem finding someone to buy it.