How does Cash For Cars Service Work?

It’s always exciting when you are about to buy a new car, however, it is also important to decide what is going to happen to your old car once you’ve made the purchase. When it is time to finally let your old car go, there will be a few options available to you such as trading it in at a dealership or better paying options such as selling it privately. One of these opportunities is cash for cars service. If you wonder how a cash for cars service works, we will be diving into detail in this article!

What you need to know about cash for cars service

Although selling a car privately will be more lucrative in terms of the sale price, finding the correct buyer will be equally difficult. Selling a car privately will definitely take more time than just trading it in, largely because of the low-price hunting buyers inquiring at all times. If you are not looking forward to spending weeks selling your car and don’t want to let it go for cheap at a dealership, you may want to look into another option, a cash for cars service.

A typical cash for cars service buys old cars that are no longer fit to drive on our roads. These services also pay for cars that are damaged and cannot be registered for road use. The main business scheme is that the company will be parting out the said cars and use the rest of the metal shell of the car for scrap purposes.

• The cash for cars service will usually tow the car from the location of its sale to the yard. Although not very frequent, sometimes car owners drive in their cars to the yard. It’s a very common sight to see cars piled up in rows, waiting their turn to be scrapped. Some cash for cars services have warehouses where they store salvaged and refurbished parts, open for sale. Over 80% of any given car can be recycled at scrap yards and that’s how cash for cars services operate their businesses.
• Cash for cars services are licensed to buy unregistered/written-off cars. If you were to sell your unregistered or written off car privately, the chances of a successful sale would be slim to none. The same goes with slightly damaged cars – you won’t come across someone who will pay for an accident car on Gumtree or Marketplace. Whereas a cash for cars service is actually interested in your unwanted vehicle.

Selling recycled auto parts: Most of the parts coming out of an old car are still usable while some may need some refurbishing. Cash for cars services might sell these parts through a dedicated used-parts sales component, or directly to the customers.

Scrap Metal: After all the usable parts of the car has been extracted, there will be only the car body left which consists of mostly steel and aluminium mostly, is scrapped and sold to specific facilities to be recycled further.

How much does a cash for cars service pay?

The amount you’ll get for your car will depend on its make, model, overall condition and the current situation of the scrap metal market. The more popular a car is, the more demand it will have for its parts. Cars like Toyota Camry, for example, will instantly attract cash for cars services due to its popularity in the market. Generally, you can expect to be paid anywhere from $300 to $1000 for scrap cars and +$1000 for cars that have only minimal damages/issues.