Tag Archives: who buys old cars

Auto scrap, value of a scrap car, who buys old cars

Vehicle Loan News

Vehicle Loan News

Cleveland Scrap Cars is an auto scrap outfit who buys old cars 6 days a week, paying you cash for the value of a scrap car. When you sell a junk car to CSC, from the point of vehicle removal you can rest-assured that the car will be recycled in a manner that is friendly to the environment. The majority of auto scrap is able to contribute to the ongoing usage of existing cars on the road or toward the betterment of new vehicles or other products. A November 28, 2015 article posted on gazette.com composed by Jim Flynn titled ‘Avoid going upside down on car loan’ informed us of the following:New car sales have been hot the past couple of years, in large part due to increased competition in the auto finance market. Lenders have found auto finance to be one of the few ways available to earn a decent return. Heightened auto finance competition has had a couple of notable concerns. First, subprime auto loans have increased greatly. (This may not be as risky as it sounds since, in hard times, people are less likely to default on an auto loan than a home loan)  Second, auto finance competition has resulted in extended loan terms.

Not long ago, a three-year term was the norm. Now, it’s common to see auto loans with terms of 5 to 7 years, which reduces monthly payments. Usually the value of a financed auto will go down much faster than the loan against it will be repaid. To illustrate, assume you buy a 2015 Mustang for $45,000. You put $5,000 down and finance $40,000 on a 6% loan. If the loan term is 3 years, your monthly payment will be $1,217 and the loan will be fully paid at the end of 3 years. If the loan term is 7 years, your monthly payment will be $584. However, at the end of 3 years, you’ll still owe $24,881 – and your car will likely be worth around $17,000. Now, if your car is stolen at 36 months, never to be seen again, your insurance company will, under your comprehensive coverage, pay you $17,000 (less your deductible) – meaning you’ll have to scrape up roughly $8,000 more to pay off your loan.

This problem also referred to as being “upside down on your loan” (aka: under water).  Gap insurance comes to your rescue when your auto is a total loss due to theft, an accident etc., and its value is less than what you owe against it. Some auto lenders will also require gap coverage, especially for a long-term loan with a small down payment. Although the concept of gap insurance is simple enough, it can get complicated when you look at the details and your options for coverage. Gap coverage might just be a simple contract, in which event the solvency of the company providing the coverage becomes a more important issue. If your own insurance company doesn’t offer gap insurance, your lender or auto dealership most likely will.  In all events, you need to compare terms of coverage and cost before you buy. You’re likely to find major differences from one product to the next.” The full article is available here.

This scenario is so inherently flawed it is ridiculous. I will explain why in the following points:

  • Why is someone who only has $5,000 cash down buying a $45,000 car in the first place?
  • If you are illogical enough to think this makes sense, consider that 4 years from now, likely you will have an “itch” for a nicer car anyway and be strapped with 3 more years of nearly $600/month payments.
  • Why would you knowingly do a loan where you know the value of the car will have you “under-water” soon?
  • The dealer & lender know the whole situation is flawed and that is why they are selling you “gap” coverage! 

Back to Auto Scrap

Hopefully those who took the time to read the above analysis take it to heart. Anyhow, the value of a scrap car is influenced by several factors including the current per ton auto scrap price, the age and condition of the vehicle and the costs incurred by the guy who buys old cars in retrieving the car. Are you wondering who buys old cars in the greater Cleveland area? To determine the value of a scrap car simply call us at (216) 282-JUNK today.

 

Get cash for a car, who buys old cars, value of a scrap car, auto recycling junk cars

Old & Scrap Car Batteries

Old & Scrap Car Batteries

When you decide to get cash for a car by selling it to a place who buys old cars, the majority of it will be recycled. The value of a scrap car within the auto recycling junk cars industry is based on the components available for reuse and the materials which then can be recycled to produce new products. Here at Cleveland Scrap Cars we pay cash for junk cars, and are a responsible buyer of scrap cars that is committed to the environment. The value of a scrap car is one aspect of auto recycling junk cars; another important goal to consider is that the majority of the materials which compose the vehicle are diverted from landfills. An article on waste360.com composed by Allan Gerlat that was posted on November 13, 2015 titled ‘Acqua Metals Secures Financing for New Nevada Lead Battery Recycling Facility’ informed us of the following good news: “Acqua Metals has secured a $10 million loan to build a facility to recycle lead batteries near Reno, Nev. The Alameda, CA-based Acqua Metals (AM) received a loan from the U.S. Dept. of Agriculture (USDA) Rural Development and Green Bank to build its first AcquaRefinery at the Tahoe Reno Industrial Center (TRIC).

Rather than traditional smelting as a lead battery recycling method, they will employ its continuous electrochemical system, called AcquaRefining, which it claims is safe and environmentally friendly. The process packages the lead into a brick that can be reused. The company will produce lead at 80 metric tons a day and then 160 metric tons per day by 2018. The cost of the new facility is estimated at $29.6M; (AM) plans to apply the proceeds to expand its lead recycling capacity.

According to Stephen Clarke, (AM) CEO, the demand for their recycling capacity has been strong; the loan provides (AM) financing to expand their initial AquaRefinery. The company called the traditional smelting process one of the most polluting industrial processes in the world. Lead-acid batteries have the highest recycling rate of any product sold in the US; the most recent data from the U.S. EPA puts the rate at 95.9%. The high rate is because of the value of the lead & plastic components of the battery, the ease of returning a used battery when purchasing a new one, and laws in 39 states requiring the retailer take back the used battery when a new battery is purchased, according to a recent Waste360’s Profiles in Garbage report”. The article can be read in its entirety here.

Auto Recycling Junk Cars

It is very encouraging to read about this company’s new programs for recycling these scrap and junk vehicle batteries. The process that they are using to recycle the units is a significantly cleaner solution for the environment. It sounds as though the government agencies that are assisting with the funding for the new facility are moving in the right direction.

Those seeking to get cash for a car in Lakewood, Linndale Village and Newburgh Heights are in luck. Cleveland Scrap Cars, a locally based provider who buys old cars, is on-hand 6 days a week in the area. As mentioned in previous posts the value of a scrap car in the US has declined during 2015. This is attributed to a significant decrease in demand within the global commodities market place in which we operate. Due to the global nature of the markets that involve the materials that comprise a car, this effect is present among all those in the US who buys old cars. If you are looking to junk a car for cash in Eastlake, Twinsburg and Collinwood, our scrap car buyer will provide you a junk car quote right over the phone. We purchase totaled cars and damaged vehicles in the regions of North Randall, South Euclid and Cleveland Heights. Our cash for cars service area extends from North Olmsted to Northfield and from Parma to Chagrin Falls. If your car is broken down in a city such as Garfield Heights, the Tremont area, or Macedonia, we suggest you call us at (216) 282-JUNK. We routinely handle removal of cars that are not worth fixing from shops like Conrad’s, Midas, Firestone and auto dealers of all kinds. Residents of Mayfield Heights, Lake County and Bedford can always receive a price for the value of a scrap or junk car by submitting the vehicle information though our website at http://www.ClevelandScrapCars.com. The requirements for scrapping a car in Sagamore Hills, Middleburg Heights or Beachwood are simply that you possess the title for the car and an ID that matched the name of the owner listed on that document.

Value of a scrap car, who scraps cars, who buys old cars, get cash for a car

Vehicle Weight Reduction

Vehicle Weight Reduction

We typically report on issues related to end-of-life vehicles (ELVs). As an outfit who scraps cars, where you can get cash for a car, that is our primary function. We like to keep a watchful eye on the opposite end of the spectrum also because the value of a scrap car is closely tied to the components and materials that compose the vehicle when it is manufactured. Ultimately, someone who buys old cars, thus allowing you to get cash for a car, will monitor what the next generation of autos will consist of. Our next topic centers on automobile manufacturers, more specifically, their strategies for reducing the weight of the vehicles they produce. In the October 27, 2015 edition of autonews.com there was a story composed by Richard Truett titled ‘Ford, GM innovate to remove weight’ with the following details: “Despite cheap gasoline prices in the U.S., the march to remove weight from light vehicles continues. Ford’s new Shelby 5.2-liter, V8 engine is the first Ford engine to be made in-house that uses plasma transferred wire arc process, or PTWA. Ford has used PTWA before, but has outsourced the work. Ford actually patented the process and licensed it to Nissan. PTWA does away with the heavy cast-iron liners in an aluminum engine. Instead, electricity in a plasma cloud vaporizes metal wire, which is sprayed onto the cylinders of the engine block with air. The sections of the cylinder walls that the piston rings travel over are treated; Ford saves more than 6 lbs. per engine.

Ford spokesman Paul Seredynski says that bringing this in-house shows a commitment to technology. Ford’s weight-reduction efforts are part of a larger industry trend. Cadillac recently showed a sectioned body-in-white of the upcoming CT6 sedan.. The car’s outer layer is aluminum — a first for GM — but underneath, the aluminum & steel uni-body is the first application of GM’s mixed-materials approach to reducing weight. GM won’t be following Ford with a full aluminum-bodied truck. The CT6 uses different blends of steel & aluminum to reduce weight and add strength. Delphi Automotive is working to remove weight from the vehicle’s wiring harness by switching from traditional copper wires to aluminum. Cheap fuel prices may have consumers stampeding to trucks & SUVs right now, but U.S. regulators have not and likely won’t relax or delay the strict 54.5 mpg fleet average standard for 2025.” To read the article in its entirety, simply visit this link.

The weight reduction strategies are an engineering work-in progress (to say the least). Attempting to keep the production costs low, while implementing new materials and applications that decrease overall weight is a challenge. Working toward the same goals, these manufacturers are working to improve the efficiency of the drive train, while maintaining good performance for potential drivers.

Get cash for a car

Are you wondering who scraps cars in Eastlake, Twinsburg or Lakewood? Are you looking to get cash for a car from a place who buys old cars in Berea, Geauga County or Aurora? Although recently the value of a scrap car has fallen a bit, there is no reason to leave your car sitting around. Get cash for a car and free towing from Cleveland Scrap Cars. There are several factors that someone like us (who scraps cars) must consider when assigning the value of a scrap car. Will the company who buys old cars have to travel a far distance to retrieve the vehicle? Are all the components of the car still intact? An auto buyer will also likely tell you the cars for cash business will prefer models that are under ten years of age because the components are in greater demand. We are buying and towing away wrecked cars, damaged vehicles and other “clunkers” 6 days a week. Whether you live in Cuyahoga Heights, Oakwood Village or Glenwillow, we can usually be out to pick up your car in just a few hours. Residents of Chesterland, Seven Hills and Northfield are encouraged to call our junk vehicle buyer at (216) 282-JUNK. Those having a car that is stuck at a repair shop such as Conrad’s, Midas, Firestone or Monro, should consider selling the car for scrap if it is not worth fixing it. Our service area includes Cuyahoga, Lake and Geauga Counties; therefore, if you have a junk car to sell in Lyndhurst, Highland Heights or Moreland Hills, we are available.

Auto News, Careers

CSC will provide the value of a junk car right over the phone. Same-day junk vehicle removal is available 6 days a week. Are you wondering who buys old cars in Berea, Geauga County & Pepper Pike? Are you looking for a provider who scraps cars in Aurora, Shaker Hts. or North Randall? Cleveland Scrap Cars is who buys old cars with cash in Richmond Heights, Solon &Walton Hills. Our next topic is not one of our usual, such as junk vehicle removal or the value of a junk car. It involves the having a career in the automobile industry, specifically, working in dealership sales. The profession seems to get a lot of knocks for some reason and today we want to explore whether or not this is justified.

In an October 23, 2015 article composed by Jamie LaReau on autonews.com titled ‘Why hiring car salespeople is going to the dogs’ with the following story: “Given the choice to sell cars or scoop dog poop to pay the bills, my friend armed herself with a roll of plastic bags & a leash. Despite my encouragement that she could earn a lucrative living, enjoy benefits, build a career and scarf down free doughnuts in the service area by working at a car dealership. She will walk dogs until she finds a gig more acceptable to work. I‘ve heard others echo similar sentiments, stating it would be easier to tell my parents I work at Starbucks than that I sell cars. This begs the question: Is the industry’s image that tarnished?

A Gallup Poll from 2014 looked at honesty and ethics in various fields of work. Auto salespeople landed next to last on the list, topping only members of Congress. Even lawyers, who are often the butt of jokes about behavior, trumped them in terms of people’s perception of honesty & ethics. I’ve written about dealers changing how they sell to eliminate customer hassles of haggling and offer technology that allows for more price transparency and improve customer satisfaction. Many dealers are involved in the community contributing hours and dollars to charities. Many strive to enrich the workplace culture, compensation & benefits for employees. I met some of these at the Auto News Best Dealerships in Chicago. Many dealers provide generous benefits, are offering more flexible hours and pay that minimizes employee turnover. Changing public perception of car dealers is going take time and consistent positive customer experiences.” The complete article is available here.

Next we turn to carsalescareer.com for a piece headlined ‘Confessions of a Car Salesman’ with the following: “Most dealers pay a salary for the 1st 60-90 days. It’s usually about $2K a month. After, that it turns into a $200 – $300 weekly draw vs commissions. If the salesman makes more, then they typically keep the extra money. Most new car salespeople don’t make more than the guaranteed amount. A new salesman is generally paired with a veteran to help learn.  This mentor will help you make money. If they help you with a customer, they will get ½ the commission. How much is half?

  • Tier 1 –You sell 1-7 cars a month = 20% of the gross profit of the sale.
  • Tier 2 – You sell 8-15 cars a month = 25% of the gross profit, plus a $500 bonus.
  • Tier 3 – You sell 16-25 cars a month = 30% of the gross profit, plus a $1,000 bonus.

On used cars it gets a better, the salesman has a better chance of making money by holding onto more gross profit. Let’s say that the dealership owns a car for $12,350. That includes their costs to get the car certified and ready for the lot. They may list the car for $15,999. After negotiations, the car gets sold for $14,350 equals’ gross profit of $2,000. If in Tier 1, you made $400. Here is an average scenario for 12 cars sold in a month:

  • 8 new sold @ $100 each = $800.
  • 4 used sold @ $400 each = $1,600
  • Tier 2 bonus for selling more than 8 cars = $500.
  • Total month = $2,900 — Total year = $2,900 x 12 = $34,800

The more you work at it, the better you get. Some of the attributes of good salespeople are: passion and inclination to earn & to learn, ability to take rejection and excellent verbal & written communication skills. You’ll have fun and customers may send you referrals. The complete story is available at this link.

In reviewing these two sources, the bottom line is that it is challenging to make it in this profession. You must sell some vehicles in order to earn. Many people lack the interpersonal skills or motivation to perform successfully. Buying a car probably ranks close to visiting a dentist as it relates to most people’s perception of the process.

Wondering Who Scraps Cars?

If you are seeking junk vehicle removal in Lyndhurst, Highland Heights or Moreland Hills, simply call us at (216) 282-JUNK. We are a provider who buys old cars and offers fast/free pick up of your vehicle. Deciphering who scraps cars in Maple Heights, Euclid or University Heights, is easier than you think when you visit http://www.clevelandscrapcars.com. We are experiencing a strong decline in the value of a junk car right now because the per ton scrap prices have dramatically receded. If you are seeking cars for cash with quick damaged car removal, simply call our junk vehicle buyer for a junk car quote today!