Changes in Metal Prices

The market is the ultimate decision-maker when it comes to the value of a junk car. Along with the current price of metal on the market, other factors, such as metal demand, import/export trade tariffs, the strength of the U.S. dollar, the strength of the Canadian dollar, and business overhead costs, all affect how much you can get for a junk car. Additional factors can include natural disasters, elections, political events, wars, and the general condition of the global economy.

Take Steel for Example

For instance, junk cars are primarily sought after for their steel, as steel is the majority of metal inside a vehicle. In 2014, the price of steel in the United States dropped from $400 per ton, to $300 per ton, and then dropped another $80 by the end of 2016. As a result, junk car companies could no longer afford to pay $500 for a junk car. In fact, it was just not financially possible. Not only does a junk car buyer pay you for your car, they must also pay for the car to be crushed, dismantled, and distributed. On top of this, they also have to cover their company overhead fees, like paying their employees, rent, taxes, and more.

Current Prices for Steel

The current price for #1 unprepared steel is $110.00 per ton, and #1 prepared steel is $150.00. At the beginning of this year, the price of steel dropped 0.16%, or 6 Yuan/MT. Furthermore, the 2018 steel tariffs had immediate effects on steel prices. Also, a brief surge in Chinese steel production also contributes to the price fluctuations.

Get the Best Deal for a Junk Car in Kentucky

Call GC’s Junk Cars at 502-804-5605 if you want to sell a junk car in Louisville and its surrounding areas. Not only do we accept all vehicles, regardless of age, make, model, and condition, we also payout the highest returns for junk vehicles in Kentucky. Just accept our offer and we will come pick up your junk car! No title? No problem! Contact us today to request a free estimate.

If you are in the red with your car loan, you can add yourself to a long list of other car owners in Kentucky. It is not uncommon as you think to receive a low settlement check from your insurance provider when your auto loan vehicle is totaled. If you recently totaled your car, and you still owe money on your car loan, you may be in for a rude awakening. Likewise, if you already made a claim with your insurance company, and received a check that did not seem very fair, you may also be in for some bad news.

Continue reading to learn the most important points about auto loans and total loss cars, including what your options might be if you still owe on your loan or got a low settlement.

Actual Cash Value and GAP Coverage

When it comes to your automotive coverage, your vehicle is probably insured at “Actual Cash Value”, which estimates the value of your car at the time of loss. Such assessments consider depreciation, market value, and more. So, if you were not able to make at least a 20% down payment on your car, you should have been encouraged to opt for GAP insurance, which basically protects against the depreciation loss of a car that is more than the amount of money you owe a creditor on that car. This means if you had a GAP policy, it would pay the difference between what the car is worth and what you owe.

For example: you purchase a car with a 5 year automotive loan. After one year, you total the car. Your car is now worth less than what you still owe, and the insurance check you receive for the accident claim will not cover the amount you have left on the loan because the majority of the payments you’ve made over the last year went straight to interest, and the car depreciated significantly.

This situation happens every day to millions of car owners across the country. If this happens to you, your best option would be to forfeit your loss and consider GAP insurance coverage on your next vehicle purchase. If you have an old auto loan that you are still paying off after totaling a car, avoid combining it with a new auto loan. This is a setup for many problems. Furthermore, it is important to know that warranties are not covered in a total loss situation, so you will be obligated to fulfill your financial duty even though you are no longer have the car.

Where to Get Advice on Total Loss Cars

Call GC’s Junk Cars at 502-804-5605 if you have a totaled car in Louisville and its surrounding areas. Not only do we buy all vehicles, regardless of age, make, model, and condition, we also payout the highest returns for junk vehicles in Kentucky. Just accept our offer and we will come pick up your junk car! No title? No problem! Contact us today to request a free estimate.

Louisville Junk Car Buyers 502-804-5605

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Monthly Archives: June 2019

Can I Get $500 For My Junk Car?