4 Key Tips on Making Money From Junking a Car

Are you wondering what to do with an old car that’s been sitting in your garage? If you can’t find a buyer, your next best option may be to junk it.

If you’re not familiar with the term, junking a car means selling it to a junkyard. They’ll strip it of useful materials, and you get cash depending on what they take. This is an excellent solution for cars that are too broken-down to be worth fixing.

Of course, making money on car junking requires you to be smart about it. To get you started, we made a list of 4 useful tips on how to junk a car.

1. Remove Your Belongings

Before bringing your car in, make sure to give it a close inspection. While doing that, take out any personal belongings, such as jewelry or insurance cards. Pay particular attention to the inside of the trunk or under the seats.

You should also remove the license plates. When you go to your local DMV to cancel your title, they may ask you to provide the license plates as well. You might also need to remove the license when performing the transfer of ownership.

2. Take Care of Paperwork

Speaking of transferring ownership, you’ll want to bring the titles and other paperwork. That way, you’ll have protection against unexpected issues. You may be able to junk a car without showing documents, but you’ll likely get a worse deal.

If you’re not sure where you placed your title, you can request a copy at your DMV. While you’re there, look into your state’s requirements when it comes to junk cars. Some states — such as Vermont — don’t require titles for cars over a certain age.

3. Take Out Valuable Parts

Before junking your car, you may want to take out certain components. For example, wheels, batteries, and alternators often fetch more money if sold separately. The same applies to some radio systems and starter motors.

Of course, partnering with a junk car buyer allows you to skip this step. That said, make sure to get several quotes before choosing your partner. Also, look for buyers that offer to tow your vehicle to their location free of charge.

4. Do Your Research

Still struggling with the question, “Where should I junk my car?” If so, you’ll want to make sure you know the rough estimate of the car’s value. Once you know what it’s worth, you’ll be able to differentiate between good offers and bad ones.

Keep in mind that cars in terrible conditions can receive multiple offers as well. Don’t jump on the first offer you get and weigh your options before doing anything. Try to avoid brokerage firms, as they tend to offer the lowest quotes.

More on the Process of Junking a Car

One final piece of advice: don’t forget to cancel your automobile insurance policy. Contact your insurance agent and let them know what’s going on. If you’ve pre-paid for a set number of months, you may receive a refund from the company.

Looking for more advice on how to junk a car? Not sure whether junking a car makes sense for your financial situation? Check out our Auto Dealership section!