How To Calculate Scrap Car Value
It wasn’t long ago that having a waste or junk car meant disposing of it in an empty landfill. But luckily, those days are now gone! Today, the trend is to scrap the automobile for money. There are ways to determine Scrap Car Valuation, no matter how junked or used the vehicle is. So, you can find out the worth of your car using the free calculator mentioned later in this article. First, let’s understand why the vehicles’ prices decrease.
Why Does a Car’s Value Drop?
Before calculating the cost of your unwanted vehicle, let’s understand the reason behind the decrease in the car’s worth. Cars are supposed to be durable, but their price declines with time and usage.
So, let’s think this way– When you buy a brand-new car, it’s an asset for you. You want the new vehicle to be reliable and in good condition. Whereas used or second-hand vehicles are relatively affordable because you’re only buying a part of a vehicle’s overall life. It means each mile you drive reduces a car’s serviceable life, and its worth will ultimately reach zero.
Use ’17c’ Formula To Calculate Your Car Valuation.
If you want to evaluate the vehicle by yourself, start with finding out the car’s original price. From there, you need to use multipliers based on a 10% depreciation cap, mileage, and damage. Here, the 10% cap is used per the insurance industry standard, and it supposes your vehicle’s value can not depreciate more than 10%.
Here is the formula:
(before accident/ actual price) x 0.10 (10% depreciation cap) x (condition multiplier) x (mileage multiplier) = car’s current value
The condition multiplier on a scale of 1.0 to 0.0 scale mentioned below:
- 1: severe structural destruction
- 0.75: significant damage to the structure
- 0.50: average damage to the structure
- 0.25: insignificant damage to the structure
- 0.00: no structural harm
The mileage multiplier is given below; it scales from 1.0 to 0.00.
- 1.0: 0-19,999 miles
- 0.80: 20,000-39,999 miles
- 0.60: 40,000-59,999 miles
- 0.40: 60,000-79,999 miles
- 0.20: 80,000-99.999 miles
- 0.00: 100,000+
How To Increase The Value of Your Scrap Car?
If you want to get the highest value for the scrap vehicle, choose Sell Cars for Cash in Melbourne or its suburbs. They accept cars of all ages, make, model and conditions. Irrespective of how damaged your vehicle is, you’ve got a confirmed buyer in Melbourne with us. Not just that, the professional team is available for your service 24/7. Now you can sell your used car for cash on the same day you call us!
Most Effortless Car Valuation Process in Melbourne
Selling a scrap or non-running car can be stressful. It can consume a lot of your energy and time. So, to avoid all the chaos, here is the better option for you– call Sell Cars for Cash on the phone number mentioned on the top right. You can also send the ‘Instant Quote’ form. The next step is to share the accurate details of your rejected vehicle, such as the brand, age, existing condition, including the damages if any.
You will receive an instant cash quote of up to $9,999 for free based on the information. And, the best part is that our offers are completely obligation-free.
Call us now 0432 012 232.
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