Chip Shortage and Scrap Car Prices

The Jump in Scrap Car Valuation Resulting From the Chip Shortage

The shortage of semiconductor chips in conjunction with the malpractices from auto manufacturers led to the creation of a new market for scrap vehicles. These new markets saw an increase in the valuation of scrap cars because…

• Used Cars Are Now Highly Valued – Due to a lack of new car production, many people are looking for used vehicles driving up the price.
• The Growing Valuation of Scrap Cars – The supplemental consumption of scrapped vehicles has allowed for a surge in the valuation of scrap cars.
• Increased Consumption Of Salvaging Parts – Auto-mechanics and other relevant personnel require parts from scrapped cars causing the increase in consumption of salvageable parts.
• The Value of Recycling Metal Is Growing – As the value of recycled metals like steel, aluminum, and copper has increased so too has the value of scrap cars.

Outcome: Scrap vehicle proprietors are receiving greater cash amounts than previously.

Should You Sell Your Scrap Car Now?

With scrap prices reaching unprecedented levels, now is the best time to sell your old or broken car for cash. Here’s why:

• You will receive more money than if you waited – Prices will likely fall with the end of the chip shortage.
• The demand for used parts is high – Even if your car does not work, it can still have valuable parts.
• Prices of scrap metals are high – The ever-increasing need for recycled materials has caused an increase in prices.
• There is a slump in new car sales – There is a greater demand for used and scrap cars with a willingness to pay a higher price.

If demand decreases, waiting too long can mean lower payouts.