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How to Get Rid of an Old Car — And Put Money in Your Pocket
If you are looking to off-load your vehicle, it’s probably been a while since you’ve done so. According to this AutoTrader report, most drivers generally keep a new vehicle for about six years. You may not even be certain that it’s the right time for an upgrade. There are a few factors to consider when determining whether you’re ready to trade up.
We spoke to a variety of experts to help you determine when to get rid of an old car and the pros and cons for the different methods of getting rid of the vehicle. We also detail how to maximize value on a junk car that you can’t unload using the standard methods. Follow this easy guide to get the most bang for your buck when selling or scrapping your car.
When to Get Rid of an Old Car
As a retired automotive restoration and sales specialist, Luke Bratlie knows a thing or two about why you might be thinking about getting rid of an old car.
“Maybe you need space in the garage. Maybe your life partner has been threatening punishment of all sorts. Or maybe that restoration project has just sat there for far too long and you’re ready to say goodbye,” says Bratlie, general manager of Holmes Volvo Cars LA.
David Clelland, director of Infiniti Tracking, says another factor to consider is how much money you are putting toward repairs, both minor and major fixes, in addition to regular maintenance costs.
“It’s not worth it to keep repairing the car if you’re shelling out more money than when you buy a new one,” Clelland says. He adds that when even minor repairs begin to “snowball” on a car, it should be considered for replacement.
“It’s as if you just bought a new car with all the frequent (no matter how minor) repairs,” he says.
What to Consider Before You Get Rid of an Old Car
Noah Myint, partner at Mighty Car Removals, says the vehicle’s age, condition, and mileage should be considered when determining how to get rid of the vehicle.
“Newer vehicles depreciate faster than older ones,” he says, “and dirty cars may contribute to a higher depreciation rate.” Mileage will also impact how much money you can get back, both for a sale and trade-in.
Bratlie says to make sure you know what you have before you decide on what to do with the vehicle, particularly with older cars.
“Identify your brand. Your year. Your model,” he says. “You probably have a sense of where it belongs for collectors or brand enthusiasts so make that your first outreach. Look up chat forums and social network groups for cars like yours. Ask around. Someone might want exactly what you have and will pay you something fair to get it.”
You can also use services like Kelley’s Blue Book to determine the value of your vehicle.
If you are still unsure of whether it’s time to sell or the best way to get rid of your vehicle, you should reach out to a car sales associate or dealership service adviser for more guidance, Myint says.
Getting Ready to Sell or Junk
David Clark, lawyer and partner at The Clark Law Office, says he has dealt with a number of clients who “got embroiled in legal problems because they got rid of their old cars without checking the legal requirements.”
Documentary requirements include proof of ownership and a bill of sale. If you are selling a vehicle that is not registered under your name, you need a title certificate with transfer endorsement and documents of the lien sale, says Clark, who also notes that you need to cancel insurance on the vehicle following the sale to avoid recurring payments.
“A title is the most important thing, at least if you want to get any real money out of your vehicle, versus just donating it to charity or the scrap yard,” says Bryon Dorr, editor-in-chief at AutoWise and Motors Editor at GearJunkie.
If you are making a private transaction, Clelland says, you will be responsible for handling all the paperwork “but, dealing with dealerships shifts the responsibility to them.”
Get your vehicle into the best condition possible without breaking the bank before trying to sell it. Simple things like a deep cleaning and an oil change can go a long way with potential buyers. These factors are less important if you are thinking about just junking the car.
You should also thoroughly inspect your vehicle so you can declare issues/damage and make sure you aren’t leaving something valuable behind, Clelland says.
If you are not running your transaction through a dealer, make sure that you get your license plates back and provide them to your state Department of Motor Vehicles. Your state DMV website should have instructions for doing so.
How to Get Rid of An Old Car
Trade-in: If you are planning to buy a new vehicle, you can trade in your old car to take some money off your new purchase.
“Trading the old car in on a new one has advantages, as it is a super simple process and removes any tax liability from capital gains from the car sale,” Dorr says.
Pros
- Single point of contact for the purchase of the new vehicle and departing with the old leads to less complicated transaction
- Removes tax liability
- Decreases the cost of the new vehicle purchase
Cons
- May not get full value for the vehicle
- Limited to what the dealer can offer in a new car
Selling to a Dealer: If you are unhappy with the price you are offered for a trade-in, you can also consider shopping the old car around to dealers, especially if your vehicle is in relatively good shape and doesn’t have too much mileage.
“Car dealers are paying well for almost any used vehicle these days,” says Bratlie, who also recommends shopping around for quotes. JD Power offers this handy service that connects you with certified dealers to get offers on your car, or you can pick up the phone and call around.
“Selling the car outright to a dealer is also a pretty easy option, but unlikely to get you the most return for your vehicle,” Dorr says.
Pros
- Simpler than trying to sell your vehicle to the general public
- Dealers know what they are doing and can assist with the transaction process
Cons
- You are unlikely to get the highest price for your vehicle
- Shopping around to dealers requires more time and effort
Private Transaction: A private transaction between you and a buyer is likely to maximize your return, but also means you must do the advertising and deal with potential buyers. You also have to figure out any potential tax liability for selling your vehicle (this Carvana guide can assist with that).
“Dealing with potential buyers and tire kickers can take some serious work,” says Dorr.
Private transactions can be managed through classifieds like Facebook Marketplace or Craigslist, or through online auction sites like eBay, Bring A Trailer, or Cars & Bids, according to Dorr.
“Platforms like eBay and Bring A Trailer have already captured the eyeballs of project-hungry gearheads and they will bid against each other to get your heap,” Bratlie says.
You can also let someone else do most of the work for you by contacting a cars-for-cash service. There are a ton out there, so we recommend doing some research on these companies first to ensure you are dealing with a reputable service.
Pros
- You set the parameters for the deal
- This process will likely get you the highest value for the vehicle
Cons
- Can take a lot of work on your part
- “Customers” can be difficult to deal with, and you may have to talk to a lot of them
- You are responsible for understanding potential tax implications
Donate Your Vehicle: Depending on the condition of your vehicle, some charities may accept donations so they can use the vehicle, resell it or use it for parts.
Dorr says charities may pick up your vehicle for free, which is beneficial if it is not running or can’t be moved due to an expired registration or flat tires.
If you are making the donation to a qualifying charity and expect a tax write-off, check out these IRS rules before doing so. A simple Google search will pull up a ton of charities that accept vehicle donations, so do your due diligence to ensure your donation is going to the right place and that you are properly handling the transaction.
Pros
- You’re being a good person
- Potential tax write-off if you itemize
- Many organizations will pick up the vehicle
Cons
- You won’t get any money back for your vehicle
How to Get Rid of a Junk Car
If you have a vehicle that’s in rough shape and not going to return any value by trading it in or through a private transaction, there are still ways to earn some cash.
“Understand that ‘Where there is dirt, there is money,’” says Bratlie. “This phrase belongs to a mason friend of mine who pointed out that almost any manufacturing industry will pay handsomely for natural resources that support their industry.”
The weight, damage and overall condition of the car will help determine how much you get back, according to Clark. Remember to have all your paperwork in order even if you are going this route. Junkyards should still require the title when taking the vehicle.
Junk it: Junkyards are likely to provide “an average scrap price of about $200,” says Bratlie, who says you can maximize that by selling some parts (more on that below) before bringing the vehicle to the junkyard.
If you can’t drive the vehicle to the junkyard, you may be able to get a removal service to pick it up. You may face a charge unless there is an opportunity for the company to make an exchange for the metal value of the scrap, Clark says.
Sell the parts: If you have the wherewithal and time you can try to unload individual parts to maximize your return.
“If you have something a bit more mass-market, look on eBay and price check commonly used parts such as: fuel pumps, alternators, fuel injection computers, steering components, seats, sunroofs, door latches, window regulators, radios and so forth,” Bratlie says. “Without knowing what you drive, I can guess that you have an easy $1,000 worth of parts based on the above list. Can you pull the engine? The transmission? There’s another nice chunk of change for you.”
Bratlie also claims local exhaust shops might pay you $75 to $150 for the vehicle’s catalytic converters.
According to Bratlie, all you need is a basic set of tools and YouTube videos to remove vehicle parts, and once you are done listing and selling them you can call a scrapyard to come pick up the rest of the vehicle. He estimates you can get between $100 to $350 for the rest of the vehicle.
“Add that to your margin and call it a job done well,” Bratlie says.
The post How to Get Rid of an Old Car — And Put Money in Your Pocket appeared first on The Real Deal by RetailMeNot.
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