The average age of a vehicle on American roadways continues to grow every year, and the average odometer reading on those vehicles continues to rise. So it's not surprising that around the world, for every three new cars sold, one old car goes straight to the junkyard.
If you own one of these old vehicles, you may wonder how to sell your junk car. Here are some guidelines that can help you get the most cash for your vehicle, whether you have a running car or one that's non-running.
How to Sell Your Junk Car
- When is Your Car Ready for the Junkyard?
- Find Your Car's Title
- Before You Junk It, Can You Sell It?
- What's the Most You Can Get for a Junk Car?
- Is it Worth “Parting Out” My Junk Car?
- Does Cash for Clunkers Still Exist?
- Selling Your Junk Car to a "Cash For Junk Cars" Online Service
- Selling Your Junk Car to an Automotive Recycler
- Donating a Junk Vehicle
When is Your Car Ready for the Junkyard?
The first decision is figuring out if you need to send your car to the junkyard at all. The short answer is that anything mechanical can be fixed or replaced, from engines to transmissions to differentials. Of course, some components can be costly, but it can be done.
When a vehicle has major structural rust, however, it's time to think about moving it down the road to a recycler. For while you can repair rust, it will likely constitute an expense that most owners would never be able to recoup, unless we're talking about a special interest vehicle or one that's particularly desirable on the used market.
Find Your Car's Title
Without a title, it's virtually impossible to legally transfer most vehicles to anyone else, including a junkyard. There are cases where states don't require a title for older cars, but those generally need some other paperwork, like a current registration.
If you can't locate the title, your state's department of motor vehicles (DMV) has a form to fill out to obtain a duplicate. There's typically a fee for replacing a title, generally in the $75 range, so look hard at home before you decide to pay for a replacement. For more information, read our guide to selling a car without a title.
Before You Junk It, Can You Sell It?
You may wonder, "Can I sell my junk car as a used vehicle in as-is condition instead of recycling it?" The answer to that is, "It depends."
If it's time to sell your car, chances are pretty good that nobody is going to be interested in your 2002 Hyundai Elantra with 347,000 miles and a hole in the engine block. But suppose you're driving a car like a Ford Mustang, a Chevrolet Camaro, or even a Mazda Miata. In that case, there's enough call for people interested in buying a repairable vehicle to offer it up for sale as-is.
One of the easiest ways to sell a used car is by getting an instant cash offer. As is true for any sale, your success with this option will depend on whether there's demand for your car, but it doesn't cost you anything other than a few minutes to find out.
If your vehicle is truly a junk car, you may find that it's not a good candidate for an online service. Luckily, there are other ways to move the car along that also might provide some financial incentive.
What's the Most You Can Get for a Junk Car?
A junk car has value just like any other car, which means you can use a valuation tool to determine its worth. CarGurus Instant Market Value tool factors in make, model, mileage, location, and countless other variables to provide a free-of-cost car valuation. Of course, while junk car prices can range from $50 to $10,000, the reality is that the majority are at the lower end of that scale, with prices running between $100 and $500.
Is it Worth “Parting Out” My Junk Car?
Parting out is when you disassemble a car into parts in order to sell them separately. However, while it might be the best way to get top dollar for your junk vehicle, it's also the most time-consuming.
You need to ask yourself some hard questions about whether or not it's worth it to part a vehicle out. For example, if your junk car is a 1985 Mercury Topaz, there's probably little reason to consider spending the time and effort to sell the alternator, the power steering pump, and the gear shift lever one piece at a time.
Does Cash for Clunkers Still Exist?
It's almost 15 years since the $3 billion Car Allowance Rebate System–colloquially known as "Cash for Clunkers"–ended. That program existed for only a month and a half in 2009, and involved the government incentivizing consumers to trade their gas-guzzling vehicles for more fuel-efficient ones, all in a bid to keep the economy afloat during the Great Recession. Right now, there is no Cash for Clunkers program.
Selling Your Junk Car to a "Cash For Junk Cars" Online Service
If you've explored how to sell your junk car, you likely know a Google search will provide you with a long list of "Cash for Junk Cars" ads. Fill out an online form, and, theoretically, you'll receive an online quote or a cash offer. However, be aware that in some cases these offers can turn into "you pay cash to have your junk car taken away" in short order.
When a junk car buyer offers "free towing" or "free junk car removal," that expense has to come from somewhere. It's not truly "free junk car towing:" It just means the cost comes from the value of the vehicle you're unloading. As such, it's worth shopping the car around to several third-party organizations to determine the best price. Alternatively, you might find that your best bet is to do business directly with your local auto recycler.
Selling Your Junk Car to an Automotive Recycler
Actual "junkyards" are few and far between these days. Instead, most businesses that accept inoperable, barely operable, or severely damaged cars are automotive recyclers or auto salvage yards. They dismantle vehicles for parts to sell to body shops, repair facilities, and end consumers, and then move the scrap metal and plastic to companies that recycle the remains.
Don't be surprised that junking a vehicle can cost you money instead of providing you with cash. Of course, there's value in a junk car, but extracting it requires the cost of a wrecker, plus the know-how and labor to disassemble it to its component pieces, intensively reclaiming all the hazardous fluids and getting rid of the old tires (which are nearly impossible to recycle).
Donating a Junk Vehicle
If you aren't interested in becoming your own auto recycler, the most convenient and least expensive way to get help with junk car removal is to donate your car to charity. You won't make money donating a junker, but it won't cost you anything, either, and usually your vehicle will be picked up free of charge. An organization like Charity Navigator can help you determine which organizations provide the most money to the charity.
There are several important things to understand when donating to a charity. First, as far as the IRS is concerned, your tax-deductible donation is worth either a flat $500 or the amount the vehicle generates when it's sold.
Second, once the vehicle is picked up, a third party will assess its value and decide whether to recycle it or auction it.
As an example, let's say you're donating a 1995 Toyota Camry that suddenly won't start. The charity you've chosen will schedule a pickup time and send a tow company to get the Camry. The tow company will then deliver the Camry to a third party, where the vehicle is evaluated.
If it's determined that the vehicle is indeed a scrap car, it goes off to an auto recycler. If the vehicle is repairable, it will go to an auto salvage auction, where it's sold to the highest bidder. If your car sells for $1,500 at auction, you'll get a receipt, which you can then write off when paying your taxes.
CarGurus Makes it Easy to Sell Your Vehicle
Arguably the most straightforward and hassle-free way to part with your car is to use our Sell My Car tool. But for many junk cars, you’ll have a better experience selling it to a third party, donating it, or selling it for parts.
No matter what you decide to do with your junk car, be sure you locate the title and have an honest understanding of your car's worth before you hand it over to anyone. And if you're the person looking to junk the '63 Corvette, think carefully about it before you pick up the phone.
