We all have lovely memories of our cars. Maybe it is the car you got as a graduation gift, the one you proposed to your wife with, or the car you brought your 1st born from the hospital with. Our cars have a lifespan
. Sad to say when a car that has a lot of value to us personally may not be practical to keep anymore because it breaks down more than it runs. Maybe it is time to consider them as junk cars. But wait, you are not yet ready to pull the trigger on that one. Maybe you decide that repairing it is still viable? Here are some thoughts on how much it takes to repair a car that has lost much of its value.
Fair Market Value of Junk Cars
Your car overheats a lot and you do not know what is causing it. Your mechanic tells you that it maybe something bad like the engine block. For example purposes let’s look at a 2000 BMW 528i. The first step is to determine its fair market value
. This fair market value will depend on the condition and the miles that the car has already run. Most people reference the Kelley Blue Book to determine this value. However, this source of information merely acts as a guide. The real value of your vehicle is the amount of money people are actually willing to pay for it. Try and check what other sources are saying for the same vehicle with the same mileage. I recommend looking at Autotrader, Craigslist and EBay for that.
In reality most people really do not get the price they ask so it is realistic to shave around 20-25% off that price. Let’s imagine that the value of the BMW is around $3000. The next step is to know how much it is to repair the vehicle. Try going to junkyards to scout for used parts if you really are on a budget. A surplus BMW engine will set you back $1000. Determine next the cost to swap the engine. The labor cost for that will set you back another $1000. At this point the approximate cost of repair is already $2000. You still have $1,000 left over when you subtract the repair cost estimate from its market value. The real question is how much is someone willing to give you so you can profit out of the price of junk cars. The truth is not a lot.
Cut Your Losses
The best solution from a practical standpoint is to simply cut your losses. As there is no guarantee that repairing it will not create new previously unknown problems for the car. Talk to a buy junk cars St. Louis
specialist today to know your options.