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Daily Archives: October 25, 2021

How Did COVID Impact Junk Car Prices?

junk cars

The recent Covid-19 pandemic has affected nearly every aspect of daily life. Healthcare, education and the job market have all seen major changes, thanks to recent events. The vehicle industry and the junk car industry have also both seen some changes since Covid hit. Keep reading for everything you need to know about how Covid has impacted junk car prices. 

Junk Car Prices and Covid

Before the Covid-19 pandemic reached the US, junk car prices were on the rise. New tariffs on imported steel and aluminum made purchasing new metal very expensive, so recycled materials were in demand. 

Like other industries, the junk car business dropped at the beginning of the pandemic. People weren’t driving as much during lockdowns, so no one was buying or selling used or junk cars. After the initial losses, junk cars have jumped up again in price and demand has risen again. 

New Car Prices and Covid

New cars have experienced a surge in prices in recent months, thanks to the fallout of the pandemic. For one, the pandemic drove a massive rise in electronics purchases, resulting in a shortage of microchips that new cars need. Secondly, there is a rise in new-car buyers since most people are returning to work and making large purchases they couldn’t make at the height of lockdowns. 

These higher prices for new cars have prevented thousands of purchasers from picking up a brand new model. Instead, they opted for used cars, taking thousands off the market in a short time. 

Supply and Demand of Used Cars

In addition to people buying used cars when they would normally buy new ones, the supply of used cars was further drained by rental car companies. When people stopped traveling in 2020 at the beginning of the pandemic, rental companies were economically forced to sell off a portion of their fleets to stay above water. When travel opened up again, not only do these rental car companies not have enough cars to accommodate all travelers, but they also are not selling their used vehicles at the pace they normally would have. 

What it Means for Junk Cars

The high demand and low supply of used vehicles mean that owners are keeping their cars for longer. To keep those older vehicles running, many drivers are turning to junk cars for replacement parts and repairs. Maintaining cars so they can be on the road longer will prevent drivers from having to purchase a new or used vehicle when prices are at their highest. 

Contact Boston Junk Car

If you’re ready to get rid of a junk car, contact the experts at Boston Junk Car. We’ll be able to help you get rid of your old vehicle for the best price around. Give us a call today at 617-719-6436

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