How to Sell Junk Cars

Selling a junk car.

If you own a "junk car" that has become inoperable or unsafe to drive due to neglect--or if you own a wrecked car that you cannot afford to repair --you can still sell the junk car. There are several types of commercial and individual buyers who are willing to purchase your clunker. Some of these buyers will repair and then sell your junk car, while others may want to sell its parts. Before selling your junk car, you should find out how much it is worth and how to find potential buyers.

Also, keep in mind that it can often make financial sense to donate a car to charity. Why is this? Well, if you donate a car to charity, you often can deduct, from your taxes, the book value of the car you donated. The tax code looks upon such donations as charitable contributions and if you happen to itemize your taxes, the deduction of the book value of the car you donated to charity can exceed how much you would make selling the car yourself. Plus, you are doing a good deed!

But assuming you want to sell, not donate, your junk car:

Difficulty:

Easy

Instructions

1. Determine the junk car's value. Use a car valuation guide--such as the Kelley Blue Book or the NADA Guide--to determine how much money your car is worth. You can access both of these sources online (see Resources) to figure out how much you should ask for the starting price. Make this choice based on the junk car's year, make, model, trim, interior condition, exterior condition, options, and mechanical integrity. If your junk car is over twenty years old, you may need to purchase a print version of these sources; the databases may not list your car's make and model.

2. Advertise locally. Once you have a rough estimate of how much your junk car is worth, you should first advertise locally. Post ads in your local newspaper, community boards and Websites such as Craigslist and Auto Trader. Car enthusiasts in your area may be interested in purchasing your specific make and model---especially if it is a popular classic such as a Caprice, Mustang or Monte Carlo---regardless of the repairs it may need. When meeting with potential buyers, have a copy of the title handy. Reputable car enthusiasts will require that you provide proof of ownership before purchasing your junk car.

3. Contact junkyards and car salvage companies. This is another special group of buyers interested in purchasing junk cars. Reputable car salvage companies and junkyards will first require that you provide proof of ownership and will want to inspect the car. They typically offer around $200 for a junk car that is in a drivable condition, and they will always offer to tow your car from its current location to their place of business.

4. Auction the car on eBay. If you have no luck with local advertisement and are unsatisfied with the offers junkyards and car salvage companies have offered you for the junk car, consider auctioning it on eBay. This will allow you to reach a larger number of car enthusiasts, though you may have more difficulty in making arrangements for delivery of the vehicle. You should spend some time learning about how to sell cars on eBay before auctioning your car there.

5. Sell the parts. If your junk car is not drivable or is otherwise in very poor condition, you may make more money from selling the parts than selling the car itself. You can sell your used car parts--such as tires, transmission, mirrors, and engine--through all of the outlets described above, especially eBay. You should learn to remove these parts yourself or ask a knowledgeable friend to help you do this. Do not allow buyers to remove the parts from your car, especially if you are not familiar enough to know whether the buyer is removing the proper parts.

Tips & Warnings

• To save money, contact your automobile insurance provider to have your car classified as a junk car so that it may be removed from your insurance coverage.

• As stated earlier, if you are unable to find a buyer for your junk car or its parts, consider donating your car to a reputable charity or nonprofit organization. You can then treat the donation as a tax deduction.

• BWMR

Resources

• Kelley Blue Book
• NADA Guide
• eBay Guides: Selling a Junk Car