Critical Considerations in a Cash-for-Cars Arrangement

Posted on

Most car owners hold onto their vehicles until the end of service. Even then, they still find it challenging to let go, thereby leaving an old clunker to sit in a garage as a haven for rodents and all types of vermin. While there is nothing wrong with developing a sentimental attachment towards a car, you should understand that old vehicles are costly. Besides, they are an eyesore and challenging to maintain. You can save yourself the agony by exchanging an old or damaged car for cash. However, you need to know a few things before taking this route.

Car Debt 

There is no shortage of vehicles being used as collateral to obtain a loan today. Unfortunately, most people think that damaged cars that are tied to debt don't qualify for a cash-for-cars arrangement. However, nothing could be further from the truth because a reputable dealer does not mind buying such a car. However, it can only happen if a car's value is more than the outstanding loan amount. It allows a dealer to pay a lender to release a vehicle. Therefore, the payout amount is the difference between an outstanding loan and the amount you agree to pay for a car.

The Value of a Vehicle  

A lot more goes into valuing a car if you plan to get cash for it. Some people have a misconception that a car's physical condition is the sole determinant of how much a dealer will pay. However, that is not the case because factors such as mileage, colour and market demand also contribute significantly to a dealer's valuation. Therefore, just because your vehicle has a muffler or blinged-up rims does not mean that you will get more cash for it. In fact, cash-for-cars dealers prefer that owners remove any customisations from a car before they can value it. You can sell the accessories separately, or you can leave them on and accept the loss.

Free Pick-Up 

Old or damaged vehicles that cannot move take up too much space in a garage or compound. However, some car owners prefer to hire towing services to drop a car to a dealer. It can be attributed to the belief that cash-for-cars dealers charge for this service and will deduct the amount from the amount owed. However, this is not the case since most dealers offer free pick up for customers with immobile cars.

For further information regarding getting cash for cars, reach out to a local auto salvage yard.