The used car market is CRAZY at the moment, here in August 2021. With high prices and demand for used cars at the present, what does this mean for the scrap car market?
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Hey, scrappers Tom from the iScrap App. And in this episode of Scrap You Later, we are going to talk about the used car market and how it has been affecting the scrap car market. Now, before we talk about these things, a couple things we want to remind you of, if you do not follow us through either our Apple podcasts or our Spotify accounts, please follow us on there follow the Scrap You Later podcast so you can know when new episodes are coming about because hey, our job is to help you make more money with your scrap, your job is to listen. So let's, let's hop right into it. I was talking to a buddy that owns a car dealer the other day because we were looking for a new work truck for Rockway Recycling. And I was saying, you know, I'm not sure that I want to buy something new. I don't really need it new. We don't use it all the time. And he said, to just buy it new he goes because the used cars right now are about the same price as some of the new cars and I. And I said, You know, I know that they're scarce, but why? And what he told me was, so many people were at home in 2020. So many people don't want to take public transit from because of 2020. So many people bought used cars, that they all went out there. At the same time, some of the biggest players inside of the used car market got rid of a lot of their inventory. Who am I talking about? I'm talking about hurts I'm talking about enterprise I'm talking about Alamo, I'm talking about the rental car industry, where they have such a huge secondary demand for their used cars, that last year when all of the rentals from business and travel disappeared while they had to produce cash. So what do they do, they sold so many of their cars, and most of their cars they normally sell between, you know, 5,000 and 50,000 miles, b t a lot of those cars went out nto the market, you know, tens of thousands of vehicles, if no more, which kind of flooded, ou know, the market is what yo would think but what happened, eople wanted more. So now he scrap car market is having a ittle bit of a tougher time, bec use the used market anything hat they can get their hands o that's half decent, they re taking it repairing it and eselling it. Now that's a bad hing when it comes to scrap ars. But the good thing is th scrap steel prices because in the past you could probably b y a car from someone for 300, 400, 500 bucks sometimes you g t it for free. Those are th se super scores that you woul like to talk about. But wi h what's going on now with ste l prices for shred and au omobiles between $202-225 ton. With catalytic converters being sold to our our ca s calm for anywhere from $100 o $500. For different c ts. For the batteries, the w eels of the aluminum prices ar going up I talked to someone t e other day who scrapped a Sa urn and the Saturn had it was a older one. But if you guys r member they made a lot of the panels with aluminum. So they ere able to take the doors and he hood and some of the differe t pieces of the frame apart and scrap those instead of just jun in the car as is. So you know t e scrap car market is still ou there. And of course you kno you have a car that doesn't run anymore, or needs a lot of work, then you're going to be abl to find in scrap it easier. Bu one of the biggest difficulti s right now has been the US car industry is fixing and flipp ng anything they can get their h nds on. Now these are generall just short term problems. And what we expect to see happ n happening into the middl of 2022 is another rush of cars coming onto the market becaus people are going to get used o traveling on public transi . Again, no more work from hom like there was a lot of thes things are going to disappear a d return to what is a new, th old normal when it comes to scr p. But some new things that you re going to want to look out f r watch out for hybrid vehicles some scrap yards are having pro lems taking them because they do 't know how or where to di pose of the different batterie . We talked about those diffe ent lithium batteries before they're not always the easiest hing to do. But we've seen a bu ch of fires breaking out across scrap yards in the country and a lot of them have been tied t the hybrid cars not being paid ttention to getting thrown into he shred or the auto pile. An then those batteries those big echargeable batteries inside catching on fire, but that'll be for another podcast. Let us k ow what you think. Let us know what you've seen in the used ar versus a scrap car indust y if things have picked up fo you, or if they've slowed dow either way we want to know unt l next time scrappers This is om and I'll scra