How to Sell a Car to a Junkyard

Sometimes it isn’t worth the effort to sell a car in the marketplace or trade it in to a dealer. If the car’s value is low or it has too many necessary repairs, it may make more sense to sell it to a junkyard to recover some cost for minimal effort.

There are several ways to sell a car to a junkyard, or, what’s simply called junking it. This article outlines the general legal process, as well as other options that might be available.

The Legal Aspect of Selling a Car to a Junkyard

Before heading to a junkyard, the car owner must ensure all the legal documentation for the vehicle is in order. Here are some examples:

• The owner’s name is on the title and doesn’t have any outstanding liens.
• Depending on the service used to junk the car, the service might require the owner to fill out a form that notifies the state’s department of motor vehicles (DMV) or bureau of motor vehicles (BMV) that the car is now in junk status, meaning it’s off the road for good.
• The car owner must notify the state that the vehicle is no longer in their ownership, the same process made during a standard private party sale.

Since the car is going to a junkyard and will no longer be driven, emissions testing and safety inspections are not required, and necessary repairs will no longer need to be made before the sale. This includes brakes, tires, or other critical components—normally, these are points of negotiation, but they’re not a concern when selling to a junkyard.

Figuring Out Where to Sell It

There are numerous services out there that offer to pay handsomely for a junk car. Some deal in scrap metal or catalytic converter value, others intend on selling parts second-hand (such as in a physical junkyard), or the service may have other plans for the vehicle. A car owner may not know the value of their vehicle to each of these services, so it’s a good idea to get multiple quotes and not go with the first offer received. 

Here are some tips that car owners should keep in mind while negotiating with junkyards:

• Get multiple quotes and determine which will pay the most for the amount of work the consumer is willing to put in.
• If the company requires the car to be drivable, that could be an issue and affect its value—and also act as a point of negotiation.
• Some state-funded programs add financial incentive to junking older cars in the name of improving overall vehicle emissions. The process with the state may take a little more paperwork and require more details about the condition of the vehicle, but the extra work may mean more money for the car.
• Some junk car companies may require certain parts be present, such as headlights, catalytic converters, one or both bumpers, interior seats, and so on, so it’s important to understand all the stipulations of each company’s offer.

Does “Parting Out” Make More Sense?

Before accepting an offer from a junkyard, car owners should do some research and find out the market value for various car parts. If the car is being sold for scrap metal value, it might be worth it to part it out.

Parting out is removing any component (also known as a part) of value and selling it to a private party, otherwise known as flipping it. If the car’s bumpers are in good condition, those could be of value to someone with the same make, model, and generation of car. This also goes for an aftermarket set of wheels, aftermarket components in general (cold-air intake, high-flow exhaust system, upgraded headlights, etc.), or any other potential item of value. 

A quick way of figuring which parts may be valuable is searching on eBay, Craigslist, and other second-hand selling platforms. For example, researching parts sales for a 2002 Audi S4 using search terms such as “2002 audi s4 X (headlight, ECU, wheel, turbo, etc.)” could provide an idea of which parts command the highest prices on the used market.

Before Handing Over the Vehicle

Once a car owner has decided where they will sell their vehicle, they need to take a few last steps before handing it over to the company.

• Ensure any sensitive documentation is removed from the vehicle, including any papers containing personal information. This includes photographs, checkbooks, bank statements, or anything else that could be used for identity theft.
• Remove anything of value from the interior of the vehicle.

Donation Instead of Sale

If selling to a junkyard is still more work than the money received is worth, a car owner could donate the car to charity. Donating the car may not be a cash-in-hand scenario, but it could provide a sizable deduction on the owner’s tax return.

Summary

Selling a car to a junkyard can be an easier way to dispose of a vehicle that does not have a high enough value to merit the trouble of selling it on the marketplace. But before deciding where to sell it, car owners should research the process to ensure they meet all the legal requirements, that their identity is protected, and that the sale is as trouble-free as possible.

Related Resources

• VIN Lookup
• All Cars for Sale
• Sell My Car
• Compare Cars
• Car Finder Tool
• Car Ratings
• New Car Previews
• Expert Car Reviews
• Car Trade-in Values