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When is it cheaper to get rid of your car then to keep fixing it?

Time to get rid of a car
For consumers that own older cars, there will one day be the inevitable question as to whether or not to fix the vehicle when it breaks down or buy a new one. As a car gets older, it will break down more often than when it was newer. Routine maintenance costs will continue to increase as the vehicle’s value depreciates. Eventually, you will need to decide on the pros and cons of continuing to fix the car, or simply selling it or trading it in and buying a new one. Below are several reasons why it might be a good idea to move on from the vehicle and invest in a new car.

Reliability

Is your vehicle always breaking down or having issues? Do you feel you are rolling the dice every time you try to start the engine? Having reliable transportation is priceless and when that reliability fades it begins to force one into thinking about buying something new. If you are having trouble picking up your kids, going to work, and meeting your obligations, you may have to upgrade your vehicle regardless of the repair costs associated with it. Getting from point A to point B consistently without any issues should be the norm, not a fluke.

Repairs cost more than actual vehicle value

This is a common occurrence with older used vehicles. The car breaks down or needs maintenance and you are told by the mechanic that it’s going to cost several thousand dollars to fix when your vehicle isn’t even worth that much. What do you do?

Seriously consider looking for another vehicle. Use the money that you would have spent on repairs could as a down payment towards something else; newer, nicer, and more reliable.

Safety

Does your old used car have steering issues, shock issues, or leak any fluids? Do you smell burning oil when you drive it? Eventually, a vehicle gets to a point where it’s no longer safe to drive if you haven’t properly taken care of it. You will have to decide if continuing to drive the car is worth it; especially if you were to get into an accident. If you are a mother or father with kids, keeping them safe is a top priority, and you are going to want a vehicle that’s going to protect them.

Have you simply had enough?

Maybe your car hasn’t broken down, but little things keep going wrong with it. Eventually one day your power windows and mirrors stop working and you’ve decided you had enough! If this is the case, it may be time to look for a new vehicle. Drawing a line in the sand and saying “no more” is an incredibly motivating thing and sometimes all it takes to push someone to take action when it comes to replacing their vehicle.

If you are going to be paying for your car, whether by paying for its repair or by making car payments, wouldn’t it make sense to at least pay for something that is reliable and that you enjoy driving? Keep this thought in the back of your mind before you fork over thousands of dollars to fix a vehicle that you should replace.

If you’re in a situation where keeping a car is costing you more than getting rid of it, feel free to contact us to sell or junk it. We’ll have the headache removed promptly.

Toyota Corolla Turned 50 on Saturday

1966 Toyota Corolla

As of November 5th, 2016, the Toyota Corolla has been in production 50 years. The vehicle has been a huge success for Toyota motor corp. and is still being produced to this day. To date, over 44 million Corolla’s have been sold world-wide. Originally the car was marketed and sold as a vehicle for the masses, a car for everyone, and it seems Toyota has achieved exactly that.

In the 1950’s Japan’s economy was recovering from World War II and it was Toyota’s goal to create a car that the average family could afford. Originally the vehicle Toyota came out with was the “Publica” which did not do very well. From there, Toyota developed the first generation Corolla which went on sale in 1966. The car became a huge success and went on to survive for 10 generations. In 2016 the Toyota Corolla is considered the number 2 best-selling passenger car model, behind yet another Toyota, the Camry. The car continues to sell well and serves as one of the staples of the Toyota brand.

Over the years the cars was offered in different body types; coupes, sedans and wagons. Different engine options also became available, and the car went from rear wheel to front wheel drive. Aesthetically, the vehicle went from a very bland utilitarian design to one now which is considered more “sporty” and “fun.”

One of the reasons why Toyota’s in general have become so popular in the United States and other countries is their reliability. Not just the Corolla, but the entire brand as a whole is known to be an extremely reliable one. In a study performed by CarMD.com the 2015 Toyota Corolla was judged to be the most reliable vehicle in America. Toyota also led the study by being the most reliable brand, having 18 models fall into the top 100 vehicles for reliability. Ford fell in second place with 14 vehicles and Honda came in third place with 10 vehicles.

The Toyota Corolla is also offered at a favorable price point range for the masses; starting at under $20,000 for a new car in 2016. The first generation model was being sold at under $1,700 which was considered affordable at the time. Even now, a vehicle under $20,000 is considered to be, for the most part, affordable by today’s standards. This price point, combined with the reputation for reliability, created a perfect storm for a vehicle to be widely popular and the Toyota Corolla fit the bill perfectly.

With the onset of electric cars gaining popularity, vehicles like the Toyota Corolla will still see favorable sales due to their high miles per gallon rankings and cheaper price points. The electric car revolution will most likely affect gas guzzling vehicles more so in the beginning before it truly starts to affect cheap mass market cars like the Corolla. However Toyota already has many hybrid options available and will most likely start to offer full electric versions of their vehicles at some point in the future. Perhaps one day, the Corolla will continue its reign as one of the most popular vehicles ever made as an electric version. Regardless, the vehicle has entrenched itself as a staple within world-wide society and will continue to be viewed as a “go-to” option car purchase for years to come.

If you have a older Toyota Corolla that you would like to sell or junk, feel free to contact us to get paid top dollar and / or have it removed.

How fast do electric cars depreciate?

2004-2005 Honda Civic Hybrid

We are living in a technological age, one in which electric vehicles are becoming more prominent. Electric cars are projected to increase in popularity as time goes on and as they become more common the resale market for these vehicles will grow. If this is the case, it then becomes interesting to see how these vehicles depreciate and if their depreciation is as dramatic as some of their gasoline powered competition.

One of the many benefits to buying an electric vehicle comes from tax rebates. Federal tax credits can be upwards of $7,500 on an electric vehicle. As a result, it makes buying a new electric car much more attractive and dramatically affects the resale market of that same car. Essentially due to tax credits, it makes the lease of a new vehicle actually cost less than the purchase of a used one.

Average trade-in values of certain electric vehicles in 2014 fell between 22% and 35% depending on the vehicle model. This makes the depreciation on electric cars nearly double that of a comparable gasoline powered vehicle.

There is also an underlying concern as to the battery life of the vehicle and the timeframe in which they would need to be replaced. This creates apprehension when purchasing a used electric car that already has some miles on it which helps drive down the price.

The good news is that if you are willing to purchase a used electric vehicle that is several years old, you can get an amazing deal. A 3 year old Chevy Volt or Nissan Leaf can be found for 69%-72% off the sticker price.

An exception to the rapid depreciation of electric vehicles is shown with the company Tesla. 2013 Model S Tesla’s are still worth 71% of their original price, compared with 44% for a Nissan Leaf and 39% for a Chevy Volt.

Really it all comes down to basic economics. People are still weary of the longevity associated with electric cars and until there is more proof in reference to the reliability of electric cars over a long period of time, most buyers will chose a gasoline powered vehicle over an electric one. There needs to be a shift in today’s society’s reliance on fossil fuels and that change is happening slowly but surely. In the meantime, electric powered technology is still relatively new in comparison to gasoline powered vehicles, so the track record and resale value are hindered.

If a buyer would like to avoid a significant loss in their vehicle’s value when they purchase, whether it’s an electric car or gasoline car, they are better off shopping the used market. Depreciation is most dramatic over the first few years of ownership and then it tends to be less significant.

Another option would be to lease a new vehicle instead of buying one. This allows you to not be as concerned with depreciation if you have no intention of buying the car in the first place.

Electric cars are undoubtedly the wave of the future but a buyer must do their research before taking the plunge into electric car ownership. With extremely low resale values and extremely high depreciation, it may be best to explore other markets before making the full commitment to an electric vehicle.

If you have a hybrid or electric car that you want to dispose of, get some cash for it contacting us today.

Cars that depreciate the most and fast

Buick Regal

When buying a new car, most people understand that they are losing a fair amount of money the second the car leaves the lot. On average, one year old cards depreciate roughly 21.2 percent. That’s a significant decrease in value for just 1 year in age. What’s even worse to consider is that there are many cars which are known to lose even more value than that. These cars are depreciation magnets and buyers should beware if consideration is being given to purchasing one of these vehicles.

With the worst depreciation culprits rounding out the bottom of the list, here are several known to have significant depreciation after their first year of ownership.

  • Buick Regal – Buick Regal’s depreciate on average 31.2% in the first year. That’s more than $10,000 and nearly 1/3 of the vehicles overall value.
  • Cadillac CTS – Cadillac’s introductory offering does not hold value well, depreciating roughly 31.8 percent its first year. In dollars this equates to over 13k.
  • Jaguar XF – Jag’s depreciate nearly $20,000 dollars their first year equivalent to around 32.3%
  • Nissan Maxima – the first car on our list to officially lose over 1/3 of its value within 1 year of ownership!
  • Mercedes-Benz C250 – Even luxury brands sometimes have problems. Mercedes depreciate over 34 percent their first year. Combine that loss with the cost of ownership associated with a European Luxury vehicle and you better prepare your wallet to take a hit.
  • Kia Cadenza – The South Korean’s made the list with their Kia Cadenza which boasts 34.3 percent depreciation after year 1. It seems that vehicles across a wide range of manufacturers can be subject to massive depreciation, regardless of the reputation associated with the brand.
  • Volvo S60 – Swedish car manufacturer Volvo also made list with their sporty S60 model. First year depreciation is almost identical to that of the Kia Cadenza at 34.4%.
  • Lincoln MKS – Automotive giant Ford takes a hit with their luxury Lincoln brand. The MKS sees a depreciation of 34.5% and loses over $16,000 its first year!
  • Fiat 500L – Fiat leads the list with the worst depreciation of any car in 2016; 34.6%. Although this is more of a budget vehicle, it still amounts to over $8,000 of the vehicles value in the first year.

As you can see from the list, car depreciation affects many different brands and models. There doesn’t appear to be any propensity towards a specific vehicle manufacturer or country. This may be interpreted as there being a more even playing field with modern manufacturing techniques amongst the different car companies.

When shopping for a new vehicle you will want to take resale value into consideration before you make your purchase. Most people don’t keep their cars forever and eventually sell them for a new vehicle. If you don’t want to take a massive depreciation hit, it may be in your best interests to purchase a vehicle that’s already a year old with some miles on it. At least this way you don’t lose a third of the vehicles value the second you drive off the lot.

If you have already made the error of buying a vehicle that has depreciated too quickly that you can’t get off your hands, nonetheless, feel free to cut your losses and get cash for your unwanted car, and / or donate your car for a tax deduction by filling out the form on the home page, or by calling us dialing the number above.

How Much Money Can I Get For My Junk Car

Honda CRV junked in ozone park, ny

What you get paid for a car that you are trying to sell depends on several factors. If the car has over 100K miles and is over 10 years old, odds are that it will be junked by a company like ours. If it is to be scrapped or junked it will be crushed and sold for what the weight of its metal is worth.

The lower demand for scrap metal in countries like Turkey and China has caused the price of scrap metal to drop by 50 percent in four years, according to the Buffalo News. Manufacturing in China has slowed considerably, therefore those manufacturing organizations aren’t paying what they used to for scrap metal.

The scrap metal trade in the U.S. is a $105 billion a year industry. So many metal products were manufactured in the United States decades before any other country that the scrap metal sector has established the foundation for many other sectors of heavy industry.

“According to data from the Steel Index, U.S. scrap steel prices were about $200 per ton last month, compared to more than $400 per ton in 2011 and 2012,” the Buffalo News reported.

This pricing pressure has caused dozens of yards to close since last year. The Wall Street Journal reports that the price of scrap steel went from $261 a ton in the spring of 2015 to $203 a ton in the spring of this year.

Since production of U.S. steel has dropped 11 percent to 78.9 million tons, that slowdown also contributes to the diminished demand for junk cars. In the U.S. over 60 percent of its steel is produced using scrap metal as its raw material.

Some yard owners are stockpiling scrap motor vehicles until prices pick back up. Although 10 to 12 million cars are junked yearly in the U.S., most yards are family owned and operated such as our yard in Ozone Park, Queens, New York. We have established relationships with mechanics, dealers, peddlers, and other professionals in the automotive community that help keep a business like ours in operation.

A car that was junked for $500 a few years ago can now easily go for around $50 to $150 depending the year, make, model, weight, and condition of the car. The good news is that record sales of new autos have stabilized the prices as factories need more steel for new cars. Further, as the influx of scrap metal has curtailed, demand for it is starting to rise. Hence pricing is forecasted to start increasing too.

If there is a wholesaler that purchases the car for immediate or expeditious resale, then perhaps you could generate more revenue for your used vehicle. However, ease of credit access due to low interest rates that helped record sales new autos, have hurt the used car market considerably. So we get stuck in a dilemma of people wanting to sell their used cars with less buyers. Even people with terrible credit can get a loan for new car. However, feel free to call us if you have a car in operable condition with minimal issues, and we can potentially pay you more for it.

The truth is that if you have the time to wait around while people come kick tires, test drive the vehicle, check the oil, do push-ups to look under your vehicle, or even drive it to their mechanic to be inspected, then you can potentially make more money for your used car posting an ad on Craigslist or Ebay. However, if you do the math, you may not be valuing your time that well if you’re jumping through hoops to make a couple of hundred dollars more for a very old vehicle. If you have to put in work to have it in selling condition, you’re also making a monetary investment that’s not guaranteed to return. Further, if you have to pay for insurance another month or months to keep it on the street, you also have to factor in that as a cost of goods sold. So insurance costs drop your profit as well.

Most of the time with a very old car, the best solution is to donate it to a wounded veterans’ charity or junk the car for a few bucks to stay ahead; either way you save on towing costs; if it breaks down on a highway, you’ll have to pay to have it removed, we can’t even help you in that situation.

You rarely get the money you put in your car because they all depreciate so dramatically. In this case it is not cheaper to keep her.

What’s The Best Way To Sell My Car?

I’ve been buying and selling cars for a little over 20 years now; basically ever since I bought my own car. And each time I sold my car, I always prioritized what has been important to me.

I work; meaning I work a lot. So I don’t always want to invest the little free time I have in trying to squeeze out a few hundred dollars out of a car that I could make working at my job site. If I want to make so much extra money, I’ll just work more; I’ll make more money. And my vehicles are always insured, so I’ll save money on insurance.

You see selling a car on a website like Craigslist, for instance, you’ll have to write ad copy, post up images, then find the time out of your busy schedule to make an appointment and have some one test drive the vehicle, check the oil, probably drive it to their mechanic, and possibly still not purchase your vehicle. If you’re making even $10 an hour and time and a half at $15 an hour for overtime, you’re probably looking at spending $75 per call. If you have to take 10 calls to sell the car, you just put in an additional $750 to sell your car. So its senseless to fight over $300 more. Even if it takes you half the time, you’re just breaking even on your time alone.

For the proverbial cherry on top, it typically takes you a month to sell a car on a website like Craigslist. So you’ll also be out the $150 to whatever amount of money you’ve paid just to sell the car. So even at $150, you will have invested an $900 to sell your car… on the low end. I have relied on selling my car to a place that can offer me cash on the spot. I don’t have time to go on a iffy test drive; nor do I have time to allow you to kick my tires and ask questions you don’t even understand acting like you’re ASE certified. Tell me how much I will get, schedule a time, pay me, and take it away. I value my time too much because once its gone it will never come back.

Cash for Clunkers Program in New York City

Under the CARS (Car Allowance Rebate System) program, the federal government put up $3 billion to give owners of older fuel-inefficient cars rebates they could use towards the purchase of more fuel-efficient vehicles. The program started on July 1, 2009. Claims were processed from July 24, 2009 to August 24, 2009 when the funds were depleted. The DOT reported that the program funded $2.8 billion in rebates by the time all the funds were used up.

Now you can sell your fuel-inefficient or older vehicle to a private car buyer. We’ll purchase any vehicle in any condition without the need to inspect the vehicle or test drive it. We guarantee to pay you the dollar amount we quote you over the phone. And if you would like to drive the vehicle to our facility at 134-34 Crossbay Blvd. Ozone Park, NY 11414, we could pay you a $50 to $150 bonus. Call us today, and we’ll buy your used or junk vehicle within 2 hours time.

How to Get the Most Cash for Your Car

You've probably already seen signs all over New York claiming to give you $500 for any car, in any condition. You may be able to get $500 for your junk car if the vehicle is heavy enough. But the truth of the matter is that if you have an older sedan that doesn't weigh that much, it may not be worth $500. And if it's 10 to 15 years old or older, you're going to spend a lot more time and energy than you could recoup by trying to sell the car on Craigslist. 

If you're shopping around to get the highest quote for your car from a company that sells your car beware of the buyers who say that they'll pay you $500 for any car. Some of these predatory car butchers will offer you $500 over the phone or the internet and give you multiple reasons why they can't pay you that amount when the driver arrives. What happens is you've already put the time into waiting for the driver, so you'll get fed up and just take it; or you'll tell him to get lost and have wasted your time, which could possibly equate to several days. 

Call a company that pays the exact amount of cash for your car that you were quoted over the phone or any where. At Carmula, we've been faithfully serving the Queens community for almost 20 years now. We purchase so many cars that we don't have time to give you less money than you were offered over the phone; we would risk losing time when you say, no, and risk losing the cost of a tow truck that we have to pay to arrive at your location. It doesn't make business sense. 

So if you're car is worth $500 we'll quote you $500 and pay you $500. If your car is worth $200, we'll pay you $200. If your car is worth $2000, we'll pay you $2,000, if we could resell it. But don't expect to get Kelly Blue Book value for a car that was manufactured in the 20th century with over 100K miles. What you can expect is that we can either buy it's car for it's resellable value if it has any; or buy it for it's weight in scrap metal for cars that we junk because we wont be able to sell again. 

How to Sell Your Car Fast

When selling a used car quickly, you have several options from which to choose. You could always tape a "For Sale" sign on the rear window and drive it around until some one gets a ticket driving while texting when they attempted to call you. Ebay and Craigslist are among a countless number of websites where you could post images and a description of the vehicle you want to sell. However, you're going to spend the time to post images of the car and write a description on the features and vehicle history. Then you have to take calls from people who aren't sure if they want it. Then you have to go on test drives and let people who may not buy the car kick the tires and check your oil. Want to know the most time efficient way to sell your car fast? Keep reading…

If you have to sell your car under a tight deadline, you may want to consider how much time you lose from work if you invest that time in selling your car. If it takes you 20 hours to sell your car, by fixing your vehicle, then posting it online, and taking calls and visits, at $15 an hour you've just lost $300. Even if you're not making $15 at your job, if you took some over time making $10 you would make $15. So now you have to add $300 to the cost of your car. Or even if it took time away that you could have spent with your family, that's priceless. Also if you're paying insurance on this old vehilcle, you're leaking money there.

Call a company that buys your car without the need of any test drives or extended and, at times, unimportant research activities that simply waste your time. We'll ask you a few questions, make you an offer, and pay you in cash, within 1 to 2 hours exactly what you were quoted over the phone. That's it; you're done. No risk of getting tickets, or having to pay any more insurance. We don't kick tires; we simply pay you and tow your vehicle. 

How to Get Cash for Your Junk Car from a Trustworthy Company

Ensure the company you choose will guarantee the price you were quoted on the phone.

Some companies will arrive at your location and not pay you the money you were initially quoted on the phone. Never settle for a cash and tax deductible amount that is less to an amount to which you originally agreed. The only time you will always face an issue like that is if you lied about the car you had. For instance, if you said that you had a non-running 2000 Nissan Maxima with all of its parts, and when the driver arrived, he only found a stripped shell of a Nissan with no parts, then you may legitimately run into that issue; for junk cars are sold for their weight. If the car has no parts, then it will weigh significantly less than a car with parts. Otherwise, you should always get paid what you were promised.

Ensure the company you choose has an insurance policy.

In the unlikely event that a tow truck driver damages a fence or another part of your house, who’s going to pay for it? A company that is going to remove a vehicle from your property should have insurance that can cover any unforeseen damages that may occur during the removal process. At Carmula, we keep a $500,000 active on-hook insurance policy to cover any unlikely damages that occur.

Ensure the company’s drivers are DMV licensed commercial drivers.

If a driver is certified by the state, there is going to be a lesser chance that an accident is going to occur. Drivers should have the experience and expertise to operate the commercial vehicles that are used to remove your junk car. All our drivers are DMV licensed commercial drivers with a lengthy track record of operating tow-trucks and removal machinery to successfully remove scrap cars from any location.

Ensure the company’s not a fly-by-night company.

Some people perform this work without an established company or reputation in their area to remove vehicles effectively and pay people the money they were promised. We have been serving the New York City Tri-State Area since 1996. Our advantage is that we know how to dispose your car in a legal and efficient manner, causing less headaches for you.

Ensure the company has a lot to keep your vehicle.

If a company doesn’t have a place to put your car after they pick up, you could be liable to pay for any parking tickets if it is illegally stored. This is something for which no person should worry after they have junked their car. The company you choose should have space over which it has control, to store your vehicle after it is removed and while it waits to be shredded. We have been operating out of a 12,000 ft facility since 1996. We process all the paper work through the New York State Department of Motor Vehicles to transfer ownership and ensure that we are legally storing your junk car.