There are several things to consider when faced with a costly automobile repair on an older model car, truck or van. Is the old car worth fixing? Here are a few sample scenarios that examine whether scrapping your car, selling the vehicle for scrap or repairing it are the best options. The primary consideration is the cost of the repair versus the value of the car (if repaired). For example, a 2000 Cadillac Seville SLS in ‘clean’ condition with 140,000 miles needs the transmission replaced. The value of the vehicle as described can be sold for $1,700 according to Edmunds appraisal value. Assume you had the car towed to a repair shop and they quoted you $1950 to replace it. Another repair shop across town quoted $1,800; however, you would have to invest another $70 to have it towed there, thus $1,870. If the body (exterior) of the car is still in very good condition, we would recommend proceeding with the repair. Now consider that the problem with the vehicle is the engine (with replacement cost of $2,200). In this instance you would be better off scrapping the car for cash, which probably will pay you between $250 and $450 for the scrap value of the car. If you can get $300 from a junk car buyer and can come up with another thousand, you would have $1,300, thus a 13% down payment on a $10,000 car. You could finance the remaining $9,000 of the vehicle on a 36 month loan and have a payment of approximately $265 a month.
Scrapping your car, truck or van for cash is often the best option. Junk car buyers and “cash for cars” companies will pay you cash for your scrap car, junk car or non-running vehicle and tow it away. Getting cash for your clunker may be the best option. Selling your old car and receiving car for the car is essentially a way to cut your losses.