Many times scrap car owners complain of being offered dismal rates by the Melbourne Cash for Scrap cars companies. Some normally think they are offered way too little for their cars, and as a result, a good number of people with scrap cars in Melbourne are still afraid to sell them due to the fear of the low rates.
When selling such a car, it is imperative to do your research and ensure that you work only with a reputable company with relatively good rates so that you can realise worthwhile returns from the sale of your old vehicle.
However, having a good understanding of the factors that control the prices of the scrap cars will make you understand and accept the offer given by the cash for scrap cars companies and if you were to bargain, you will be bargaining from an informed point of view.
Below are some of the factors that determine the prices of scrap cars in Melbourne-:
Demand in China and other overseas markets
Most scrap cars are normally dismantled for their parts or the metal in the body such as steel is recycled to be used for a number of applications. Part of them is normally used in the Australian domestic market while a bulk of it is exported to overseas, with China being the greatest importer. The rates are thus determined by the demands in China and other overseas markets.
If the demand is high, then the rates will be good and if the demand is low, the rates will definitely plummet as witnessed in the recent years, when China has been improving its own supply of local steel as well enhancing the scrap metal market.
The value of the US Dollar
Another factor that affects the prices of scrap cars in Australia is the value of the US dollar. The US dollar is the international currency of trade and Australian exporters need it to sell their products to other countries. If the dollar’s value fluctuates, the same will be reflected in all the industry and markets that rely on the dollar for trade.
Volumes produced by the manufacturers
Finally, the prices of the scrap cars in Melbourne are also dependent on the volumes of units produced by the manufacturers who depend on scrap cars as raw materials. Let me explain. The companies that buy scrap cars from you buy them because of the value of the scrap metal.
Components made of steel, copper and aluminium amongst others are sold to other dealers who in turn recycle them to be used in the manufacture of new cars, electrical appliances, Smartphone, building materials etc. If the production of the end products goes down, the demand for scrap metal will also go down and this will trickle down to the demand for scrap cars, thus affecting the prices.
Call Cash 4 Cars Melbourne at 0450 166 040 for the best rates on your scrap cars.