How do you sell your scrap car?
(Photo Credit: Freepik)
Own an old car or one that is damaged beyond economic repair? Would you like to offload it and clear your space of clutter!
Do you own an old car or one that is damaged beyond economic repair? Perhaps it is time to get rid of it and clear up some space!
The used car market may be hot right now, but it can be tricky getting rid of your used car if it has been laid up for too long or if it is beyond economic repair. You might very well have to entertain lowball offers from dealers to take the car off your hands too.
You can choose to sell your old car for scrap, but it is very likely you will get a different offer for it, and the odds of you getting a similar price if you were to sell it as a used car is also unlikely.
What Is A Scrap Car?
These are vehicles that are no longer road-worthy due to age, mileage, or accidents. They can also be uneconomical to fix, perhaps due to the rarity of replacement parts.
The process of scrapping your car is similar to selling your used car, as you will still require a purchase order.
(Photo Credit: Freepik)
Things You Need To Know Before Selling A Scrap Car
1. You Do Not Have To Sell Your Car To An Insurance Company
For cars with valid insurance, damaged cars can be defined as ‘scrap’ if your insurers estimate the repair costs to be 70% of the car’s resale value. You’ll receive the payout as stated in your policy, and the insurance company’s representatives will then take the car off your hands.
If you would rather scrap your car on your own, you can negotiate with your insurers to keep the scrap car. Expect to receive anywhere from between 65-70% (depending on the company's discretion) of the guaranteed amount as stated in your contract. Following which, it is your decision to sell the car for scrap or use it for something else.
2. Valid Paperwork Means Higher Resale Values
It’s pretty self-explanatory - cars with valid paperwork will fetch higher resale values, even as scrap cars, than those without. We advise you to check the annual tax to see if it is still valid - do inform the Department of Land Transport to invalidate the car’s tax to prevent it from being spoofed.
3. Your Car Needs To Be Fully Paid Off
Your car technically belongs to your loan providers if you still have an outstanding balance on your loan. Ensure that you have enough cash to cover any remaining payments, either from the sale of the vehicle or from other sources.
4. Flood And Accident Cars Have Different Worths
Flood cars are generally worth less to a used car dealer. However, cars that are flood damaged tend to have lesser damage than cars that were involved in accidents and can be repaired more easily.
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