3 Factors Used to Calculate Junk Car Actual Cash Value

Posted on October 15, 2021 by Benjamin

If you are preparing to sell a junk car, you will come across the term, Actual Cash Value (ACV). This term is important to the total profit you make from your junk car. To calculate the actual cash value of a junk vehicle, you must use 3 impressionable factors. Continue reading to learn which 3 factors are used to calculate junk car ACV, and where to get the most money for yours in Central Indiana.

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Actual Cash Value for a Junk Car

Although there are various other factors used to calculate the actual cash value of a junk car, the top three most impressionable factors include book value, fair market value, and the replacement cost. Additional factors might include the age, make, model and condition of the vehicle, as well as the location, difficulty of removal or transport, and the particular discretion of the buyer.

❶ Fair Market Value

Fair market value is similar to the blue book value, but not entirely the same. Both values are often used in combination to estimate the worth of a vehicle. Fair market value is also referred to as wholesale or retail value among auto dealers. Because of the ambiguous definition, fair market value is often used to the insurance company’s advantage when claiming a total loss vehicle.

❷ Book Value

Book value is the closest value to actual cash value (ACV). It is best described as a vehicle’s common value. Top resources for finding book value are Kelly Blue Book, NADA, and similar book value directories.

❸ Replacement Cost

Replacement cost is the retail market value of the same car when purchased brand new, minus a set standard of depreciation and damages. If you were to total your car right now, the money you would receive from the insurance company would be the replacement cost. This factor is mostly used for newer model or brand new vehicles.

Calculating the value of a junk car is done differently all across the nation. It is important to check with your local and federal laws to ensure that you are receiving a fair offer for your junk or total vehicle.

Are you looking for a trusted cash for cars company in Indiana that will pay you top dollar for your vehicle? Contact Benjamin’s Junk Cars at 317-218-7133 to sell a junk car in Indianapolis, Indiana for cash on the spot. We provide free junk car haul away, so all you need to do is call!

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How to Gauge the Value of Your Junk Car

Posted on August 5, 2020 by Benjamin

Before selling your junk car, you might want an idea of how much a buyer might offer. This can give you a great foundation to work from when shopping around for a junk car company. Although there are several factors and mathematics involved that will render an accurate estimation, you can use a basic calculation to determine the average value of your junk car.

Continue reading to learn which two factors to consider when assessing junk car worth, and how to apply them in your calculations.

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Junk Car Factors to Consider

As mentioned, there are many factors that impact the actual cash value of a junk car. Such factors differ even more from vehicle to vehicle since each one has a different story. But, of all the primary factors that are used to assess junk car value, there are two you can focus on to estimate your own vehicle’s worth. These are the current scrap metal prices and your vehicle’s metal composition.

Scrap Metal Prices

Scrap metal market prices are perhaps the most influential factor to how much a junk car buyer will appraise your car for. The challenge here is that scrap metal prices constantly fluctuate, and furthermore, remain incredibly sensitive and reactive to micro and macroeconomic conditions. For this reason, a 1994 Toyota might have been worth more 3 years ago than it is today, or vice versa. The scrap metal prices to concentrate on include steel, aluminum, lead, copper, platinum, and palladium.

Metal Composition

The amount of metal inside your junk car will also play a large role in how much you can get from a buyer. Not only do you need quantity, you need quality. The better the car parts, the more they are worth. For instance, if your junk car comes equipped with a functional catalytic converter, you can expect more of a payout. You see, catalytic converters contain platinum and palladium, which are precious metals, and therefore, higher in economic value.

Where to Get Paid the Most Cash for Junk Cars in Indiana

Call Benjamin’s Junk Cars at 317-218-7133 to get the most cash for junk cars in Indianapolis, Indiana. Our experience junk car buyers serve all of Indianapolis and its surrounding areas, and pay cash on the spot for all junk cars, regardless of age or condition. We buy cars, trucks, motorcycles, farming equipment, construction equipment, and anything else that runs on fuel. With cash payments, free quotes, and free pickup, there is no easier way to sell a junk car in Central Indiana. Get started today!

The Link Between Junk Car Weight and Value

Posted on July 15, 2020 by Benjamin

Is a heavier junk car worth more than a lighter one? What about its size? Is a larger car worth more than smaller, compact vehicles? Continue reading to learn how the tonnage of a vehicle can impact its resale value, as well as, how you can make the most money from selling your junk car.

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Factors That Impact Junk Car Value

When a scrap yard is looking to make an offer on a junk car, there are very specific factors they are addressing when developing an estimate. These factors vary among junk car buyers, but generally include:

✅ Make and Model – A junk car buyer will first look at the make and model of the vehicle. Some cars are more in demand in the scrap industry than others. For instance, older or rare cars containing parts that are no longer manufactured are higher in demand than current make and model vehicles.

✅ Condition – Another important factor that impacts a junk car appraisal is the condition of the vehicle. Scrappers want to resale the parts and the scrap metal within a junk car, so the more stuff that’s operational in a vehicle, the more valuable it is to the buyer.

✅ Location – Although not something you would not necessarily think to be an influential factor, the location of a junk car has a large impact on the value of an appraisal. The farther away a junk car buyer has to go to retrieve the vehicle can be subtracted economically from the final offer. Choose a junk car buyer near you, or drive your junk car directly to the complex, for a better payout.

✅ Scrap Metal Prices – The current prices for scrap metal in the United States and global economy have the most impact on how much your junk car will be appraised for. The average car is made of approximately 55% steel, 300 lbs. of aluminum, and weighs around 2.5 tons. You simply need to look at the market and do the math.

Junk Car Size and Weight

Along with the primary factors listed above, the weight and size of a junk car does play a role in its overall economic value. Larger cars contain more scrap metal, so they will be higher in value. Smaller cars contain less, and therefore, are worth less. However, there are exceptions to this rule. A totaled 2019 Porsche is likely worth more than a 20 year old pickup truck.

Where to Get the Most Cash for Junk Cars in Indianapolis

Call Benjamin’s Junk Cars at 317-218-7133 to get a quote for your junk car. Our experience junk car buyers serve all of Indianapolis and its surrounding areas, and pay cash on the spot for all junk cars, regardless of age or condition. We buy cars, trucks, motorcycles, farming equipment, construction equipment, and anything else that runs on fuel. With cash payments, free quotes, and free pickup, there is no easier way to sell a junk car in Central Indiana. Get started today!

FAQS About Scrap Metal Prices and Junk Cars

Posted on June 18, 2020 by Benjamin

Junk cars are valuable because they contain metal, which is 100% recyclable, and can be melted down and repurposed infinitely. So, even if a junk car is deemed a total loss, it is still worth some cash, but the amount of cash depends on several factors. The most important and influential factor, however, is current market value for metal. Basically, when the price of metal is down, a junk car is worth less; and when the price of metal is up, a junk car is worth more.

Still unclear? Continue below to review some frequently asked questions about scrap metal prices and junk cars, including where to get the highest payout for your salvaged vehicle in Indiana.

What are the Market Values for Scrap Metal?

The values of scrap metal are always changing. To see the current market values for scrap metal, visit https://iscrapapp.com/prices.

Why Does the Price of Scrap Metal Change?

The prices of scrap metal are influenced by several factors. Examples of such factors include time, market demand, stock exchange prices, supply, the price of virgin metals, and the cost of energy and production. China’s economy also has a major influence on scrap metal values. On a smaller scale, the prices of scrap metal and their value change on a daily basis in local markets. From this perspective, the daily price fluctuations are caused by various factors. The quantity of metal available, the quality of that metal, labor costs, overhead costs, types of metals available, and more all influence the rate of metal prices in local markets and how often they change on a daily basis.

What Kind of Metal is in a Junk Car?

Vehicles manufactured today mostly contain steel and aluminum. They also contain an average of 55 pounds of copper wiring, as well as, some nominal traces of precious metals. Steel can be found in everything from the chassis and body panels, to the doors, rooftop, and more. Aluminum is predominantly used in auto parts like radiators, wheels, transformers, and more. As for precious metal, traces can be found in the form of gold plated fingers inside computer circuit boards for electronics like GPS systems and DVD players. Platinum and palladium can also be found in the lining of catalytic converters.

How Much is My Junk Car Worth?

As mentioned, the current values for scrap metal have the largest influence on the overall value of a junk vehicle. However, there are several more factors that appraisers use to assign value to a junk car, and therefore, make an offer. Primary factors, in addition to scrap metal prices, include the age, make, and model of the vehicle, as well as, the location of the vehicle. The better the condition of the vehicle, the more it is worth.

Where Can I Get the Most Money for a Junk Car in Indianapolis?

Call Benjamin’s Junk Cars at 317-218-7133 today. We only make honest offers for junk cars, and stand by our services 100%, so call soon to get an instant quote. Whether you have an old truck, a rusted chassis, or a totaled two-door, we will pay you CASH ON THE SPOT for it all. And the best part is, our Indianapolis junk car buyers are able to offer the fullest and fairest payouts for junk cars in town because we cut out the middle-man. We offer flexible scheduling, same day service, and adhere to all Indiana EPA regulations for auto recycling.

How Much is a Junk Car Worth?

Posted on March 27, 2020 by Benjamin

Do you have a junk car taking up valuable space in your garage or driveway? Perhaps you have an old, rusty tractor or combine in the backyard that has been there since your Grandfather’s prime? If so, you are likely sitting on a small fortune! That’s right; you can sell your junk car, or motorized vehicle, to a local scrapper and get paid for it. But the profit you make will depend on a list of factors you need to know before getting started.

Continue reading to learn how much a standard junk car is worth, and how to ensure you get the highest payout for yours.

Estimating the Value of a Junk Car

Regardless of buyer, the value of a junk car is estimated by considering and quantifying three specific factors: 1) the current market prices for metal, 2) the types of metal, and 3) the quantity of metal. These three factors will determine how much a junk car is worth according to the market, which changes depending on supply and demand. The more high-priced metals within a junk car, the more it is worth.

So, what does this mean for your junk car? It means that there is really no telling how much you will be offered for your junk car until you have it professionally assessed by a local automotive scrapper. Not only do they retain experience in the automotive scrapping industry and understand how to confirm market values for metals in a junk car, they also retain innovative technologies that allow them to accurately assess the types of metal within a junk car, and the quantities of each. As a result, sellers get a fuller and fairer offer.

But do not be fooled by a local junk car buyer! There are many unethical auto salvage yards around. In order to ensure you get the most for your junk car, you must begin by choosing a professional and reputable junk car buying company. Be sure they have advanced equipment, and can offer you free estimates and haul-away service.

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