KyleStar
Tenderfoot
- #1
Thread Owner
So I get asked this one a lot from friends, and honestly I had the same question when I first started hauling. How does a yard actually come up with the number they hand you for a junk car? It is not as simple as weighing the car and multiplying, so here is how it really works.
First, it starts with weight, but not the weight you think. Yards mostly buy whole cars as shred, which is the lowest ferrous grade. They will look at your curb weight, then knock off fluids, the gas tank, tires, and whatever else has to come off before it goes through the shredder. Some yards weigh the car in and pay on that number, some pay on a percentage of curb weight. Either way, know that the number on your title is not the number you get paid on.
Second, the shred price is the backbone. The per-ton shred price moves with the steel market, so it changes week to week. A car at 2 tons times whatever today's shred rate is gives you the base. That is why calling the yard the morning you plan to haul matters, because the price you saw last month might not be there today.
Third, the catalytic converter is priced separately, and that is where the money hides. On a lot of cars the cat is worth more than the whole shell. Yards weigh or look up the converter and price it on its own because of the precious metals inside. Some buyers quote you a number with the cat included and some do not, so always ask whether the cat is separate or baked into the price. Only pull the cat yourself if you know how to do it safely and legally in your state, because converters are theft targets and yards will ask for ID.
When it comes to getting real quotes, call at least two or three yards and ask the same questions: what are you paying per ton for shred today, what will you pay for my specific car (year, make, model, and whether it has wheels and a cat), and what gets deducted. Prices can swing a lot yard to yard, so calling around usually pays off. Also ask about pickup, since free towing versus a tow fee changes the math.
Before I start calling I always run my numbers through this free junk car value calculator I use.
First, it starts with weight, but not the weight you think. Yards mostly buy whole cars as shred, which is the lowest ferrous grade. They will look at your curb weight, then knock off fluids, the gas tank, tires, and whatever else has to come off before it goes through the shredder. Some yards weigh the car in and pay on that number, some pay on a percentage of curb weight. Either way, know that the number on your title is not the number you get paid on.
Second, the shred price is the backbone. The per-ton shred price moves with the steel market, so it changes week to week. A car at 2 tons times whatever today's shred rate is gives you the base. That is why calling the yard the morning you plan to haul matters, because the price you saw last month might not be there today.
Third, the catalytic converter is priced separately, and that is where the money hides. On a lot of cars the cat is worth more than the whole shell. Yards weigh or look up the converter and price it on its own because of the precious metals inside. Some buyers quote you a number with the cat included and some do not, so always ask whether the cat is separate or baked into the price. Only pull the cat yourself if you know how to do it safely and legally in your state, because converters are theft targets and yards will ask for ID.
When it comes to getting real quotes, call at least two or three yards and ask the same questions: what are you paying per ton for shred today, what will you pay for my specific car (year, make, model, and whether it has wheels and a cat), and what gets deducted. Prices can swing a lot yard to yard, so calling around usually pays off. Also ask about pickup, since free towing versus a tow fee changes the math.
Before I start calling I always run my numbers through this free junk car value calculator I use.
