Scrap Your Car In An Economic Downturn

 

Why Are Scrap Prices So Low? - London Mini
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Last week we submitted data to Telegraph journalist James Foxall to use in his article on scrap prices, which questioned the declining price of scrap metal and its implications. James wrote a fantastic article that illustrates the effects of the current economical climate in scrap metal and we recommend that you go and check the article out here. As leaders in the scrap car industry, we pride ourselves in finding the best guaranteed scrap prices in the UK , so we felt that we would share our original findings and guide you on how to get the best prices during the economic downturn.

So take a look at the data collected below and feel free to let us know what you think – we would love to hear your opinions.

Why Are Scrap Car Prices So Low?

If you have recently scrapped your vehicle or have been researching prices in preparation to get rid of your car soon, you have probably noticed that companies are offering lower prices than you might have expected, possibly in comparison to the last time you scrapped your old banger. Scrap car prices have been gradually dropping over the past couple of years, but recently these prices have gained momentum down an increasingly steeper hill, to the point where scrap collectors have felt the squeeze so much that they have had to review their prices a couple of times a week rather than their usual monthly review.

How Much Have The Prices Dropped?

The below graph shows the decrease in prices over the past 9 months, going back to July 2014 and going through to March 2015. As you can see the price does fluctuate however, the value of a Ford Focus has ultimately dropped on average 23% over the last 9 months.

Scrap Price Graph - Ford Focus Price Drop

How Do Scrap Yards Work Out Prices?

The value of your vehicle at the end of its life is based on the weight of it, as scrap yards will be looking to recycle the metal it is made from. Scrap car prices across the country currently average around £60 to £80 per tonne (February 2015).

How Heavy Is My Car?

Remembering the weight of a vehicle isn’t something which everyone can do, which is why we’ve put together the table below. We haven’t listed every make and model or the list would be extensively long, but if you pick a similar sized vehicle to yours from the table it will provide a rough guide which will help you to estimate the price you may receive based upon the above calculations.

*Remember: 1 Metric Tonne = 1,000 KG

How Are Scrap Prices Calculated?

In this day and age you would think it would be as simple as logging onto an official website source such as the London Metal Exchange, and looking for the prices of the metals which cars are made from in order to calculate a rough guide. But unfortunately, this is not the case. Mainly because vehicles are made from an array of different metals such as; aluminium, steel, and other various alloys and each vehicle model varies in terms of percentages of these materials. If you look for the price of steel on the London Metal Exchange and you will only find prices for ‘Steel Billet’ – blocks of metal which require further processing. The prices for steel billet as of March 2015 stand at over twice the price of scrap cars – being around £200 per tonne.

Why Do Scrap Values Constantly Change?

The pricing for scrap is based upon domestic steelworks and the continuously fluctuating international market but there are so many factors in the equation which make it a hard task for anyone to accurately track, let alone predict, future prices. The issue is that it’s not just the UK’s domestic market that you have to think about, as both China and India play large roles in price movements, not to mention the recent volatile military situation in Ukraine. Scrap yards themselves also find it difficult to predict themselves, because when you are looking at price changes internationally, currencies also play a huge part in affecting values together with which country or countries,are placing orders for the different metals that are recycled in that particular month. Domestic prices are, historically, agreed on a monthly basis at steelworks, but recently even the steelworks have had to amend prices during that monthly timeframe.

How Can I Tell If I’m Getting A Good Price When Scrapping My Car?

For all of the aforementioned reasons it can be tough to gauge what is considered a good price. This is because whilst one week your vehicle may be worth £££ the next day, week or even month it could be worth ££, which whilst lower may still be considered a good deal given what’s going on in the scrap metal market at that time.

Your best bet when searching for prices at a certain period of time is to use a comparison service, like ourselves. We compare prices from buyers both locally, and nationally, with free collections and so the prices you receive during the quotation stage show what your vehicle is worth at the time your quote is generated. Because the metal market can be so volatile we guarantee all of the prices offered by the buyers listed on our website which enables you to take the time needed to think about your decision without worrying about what’s happening in the market at that time.

If you do have a broken, crash damaged vehicle, or even one which works perfectly fine but you just don’t want anymore, we can compare buyers for you across the UK to ensure that we offer you the most comprehensive deal for your used vehicle. If you would like to go ahead with sourcing quotes for your vehicles – with no obligation – simply add your registration details to the quote form at the top of this page and we’ll compare them for you instantly. Alternatively, if you’d prefer to speak to one our our experienced members of staff you can call us on: 03333 44 99 50

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