Automobile Credit Problem

Those who have heard some bad news from their mechanic in Urbancrest, Minerva Park, or Georgesville should call our auto buyer. If your car costs more to repair than it is worth it is auto junk—those in Brown, Norwich, and Perry should call. Many vehicle owners with serious mechanical issues on older cars aren’t aware that we buy junk cars in Plain, Sharon, and Lincoln Village. Are you there in Amlin, Clinton, or Groveport going to replace a transmission for over $2,000 on an 11 year old vehicle when we buy used cars for scrap. We are an environmentally sound car scrapping option.

On November 27, 2016, Greg Gardner of the Detroit Free Press wrote an article with these details: “The trend toward easy credit and longer auto loans terms has left a record number of consumers trading in cars that are worth less than what they still have due on their loan. This situation is commonly referred to as “being underwater” or “upside down” on your loan. They already are having some effect as automakers heighten incentives and sub-prime lenders watch their delinquency rates. In 2016, a record 32%, or nearly 1/3, of all vehicles involved in trade-ins at U.S. dealers belong in this category. When the consumers go to purchase a new vehicle they must add the deficit between their loan balance and the vehicle’s value to the price of the new vehicle they wish to buy.

The lowest the “underwater” percentage has been historically was near 14% in 2009, amid the Great Recession when credit was hard to obtain. Previously the high was 29% in 2006, when the housing market was in bad shape. The average new vehicle loan is for 68 months, according to Experian, which tracks this stuff. Sub-prime borrowers, those with lousy credit scores, are borrowing over an average of 72 months, or 6 years.

While those loans limit monthly payments, they also hurt the buyer’s equity, or amount of the loan principal paid off. Rather, it expands more slowly than the vehicle depreciates. If the car gets stolen, or wrecked, or you really want to buy a new car while you’re upside down then it is a problem. This happens as the average retail price of a new car is near an extraordinary high of about $34K. Some of this increase is spurred by consumers’ preferences for bigger, fully equipped pickups, SUVs and such. The result is they borrow more to get the car they want. The average new vehicle loan was $29,880 in the 2nd quarter of this year.

Leasing is now at record levels of more than 30 percent of all sales, has grown increasingly popular. Already, especially in segments such as compact and mid-sized vehicles, used car values are dropping as a wave of three year old vehicles are returned from lease. This uptick in supply is forcing down the amount dealers are enthusiastically willing to pay for these at auctions. Ford CFO Bob Shanks told people that their Ford Credit segment cut its forecast for 2017 profits because due to drops in auction values for used cars. Moody’s, Standard & Poor’s and Fitch, have expressed some concern about the pattern. Their focus is on the $38B market for securities based on auto loans. These are bundled auto loans, similar to the groups of mortgages that fell in the 2008 crash of the mortgage bubble. History indicates borrowers are likely to remain recent on their car loans compared on their mortgage payments when the economy weakens. Banks can cars quickly versus a mortgage. Fitch says that delinquencies of over 60 days on sub-prime vehicle loans rose to 5% in September, the 2nd highest level since 2001, and higher than last year.” The full article is available here.

Columbus Region Scrap Auto Buyer

How much longer will you leave that broken down car sitting there in Galloway, Hamilton, or Reynoldsburg before calling an auto buyer? There is no need to proceed further to sell your auto junk in Montgomery, Mifflin, and New Rome—we will haul it away. Where is the nearest site that will buy junk cars in Lake Darby, Whitehall, or Worthington, OH? Those in possession of an unwanted vehicle in Lockbourne, Marble Cliff, and Harrisburg should be aware that we buy used cars for scrap. Were you aware that used oil can be recycled, purified and then used again, another example of renewable usage.

Auto Maker Recycling

With our scrap auto buyer website it is fast & easy to get a quote. Do we buy junk cars that are wrecked or damaged? Yes, we definitely do purchase these cars. Our goal is to make it simple & easy to get cash for wrecked cars in Valleyview, Montgomery, and Brice. When considering junk vehicle removal in the regions of Lake Darby, Westerville, or Huber Ridge, remember to seek an established local service provider. Our environmental-based recycling processes are a benefit since they generate less pollution. Our next topic discusses the Ford Motor Company’s new initiative to further their sustainable manufacturing processes.

On May 17, 2016 Jessica Lyons Hardcastle composed an article on Environmental Leader titled ‘Ford Using Captured Carbon to Make Plastic Car Components’ with the following information: “Ford, the automaker, is developing new foam & plastic car components produced from carbon dioxide. It expects these newer biomaterials, produced by Novomer to be in Ford’s production vehicles within the next (5) years. The foam, made with up to approximately 50% CO2-based polyols, may be used in seating and under-hood applications. This could lead to a reduction in petroleum use by more than 600M lbs. annually, Ford says.

Ford started working with several companies, suppliers & colleges and universities in 2013 to find uses for captured CO2. Among them is Novomer, a NY-based company that uses carbon dioxide captured from its manufacturing plants to produce materials. Through a unique system of conversions, Novomer delivers a polymer than can be constructed into a variety of recyclable materials including foam & plastic. Plastic-related manufacturing accounts for nearly 4% of the world’s oil use, according to an organization known as the British Plastic Federation. Ford says it hopes this new bio-plastic will help obtain the better long-term goals to minimize global warming set in the Paris climate agreement. The automaker uses various sustainable materials in its production. In North America, soy foam is already used in every Ford vehicle. Coconut fiber for backing in trunk liners; recycled tires & soy are in gaskets for mirrors; recycled T-shirts and jean denim go into carpeting; and recycled plastic bottles (such as used for water) become Repreve fabric used in the 2016 F-150.” The complete story is available at https://www.environmentalleader.com/2016/05/17/ford-using-captured-carbon-to-make-plastic-car-parts/

Where to get cash for wrecked cars in the (614)

It is great to see the continued emphasis that automakers are placing on environmentally related concerns. It makes me wonder if they are actually doing this for the sake of the environment, or just to stay active in the headlines. Either way, it is a step in the right direction for these corporations.

Are you seeking a junk auto buyer in the areas of Dublin, Madison, or Gahanna? Residents of Franklin, Grandview Heights, and Minerva Park, should know that we buy junk cars in any condition. Complimentary junk vehicle removal is included in the junk car quote that we provide those residing in Grove City, Jefferson, and Hilliard. Get a price for a wrecked car in Lincoln Village, or price for scrap cars in Riverlea. We are available at (614) 715-5005 to provide you quote for a junk car in Upper Arlington. We have recently expanded our cash for cars program to include the cities of Amlin, Blacklick, and Groveport.

Scrap Pricing Decline

Scrap Pricing Decline

Columbus Scrap Cars is kicking off our new blog of news and information surrounding the topic of auto recycling of junk cars. As an auto buyer of junk cars that pays cash for junk cars throughout Franklin County, we maintain an eco-friendly approach. Our auto buyer is available to provide you a quote for the scrap value of your car, truck, van or SUV in Grandview Heights, Grove City and Groveport. To receive cash for junk cars in Bexley, Dublin or Gahanna, simply call (614) 715-5005 and our buyer of junk cars can provide you a price. Our topic here is the recent drop in the scrap prices in the US.

In the January 15, 2016 edition of wastedive.com, Arlene Karidis composed a story titled ‘Devalued scrap metal prices continue to reduce supply for recyclers’ with the following highlights: “Scrap metals such as steel, copper, aluminum and brass, have fallen 65% in value since late 2014, and many are hoping for a market turnaround. At Pacific Steel & Recycling and others they’ve seen a 50% to 55% reduction in what comes their way. Patrick Kons, Pacific’s VP of Operations, says they are down to (7) employees and have halted production at two other facilities.  Steve Moltzan, owns a Great Falls company that sells auto components and says auto bodies are at their lowest price point in over 30 years.

China’s flailing economy and drop in scrap import, a stronger U.S. dollar deterring export, and overproduction of new ore have all had an effect with this trend. US scrap metal exports dropped 4.7% in the 1st half of 2015 and recyclers and those who sell commodities are feeling the squeeze. Mr. Kons anticipates a turnaround, saying it took 14 months for prices to fall so far, and it may take much longer for them to come back. His recycling scrap yard is open & ready amid these global commodities with cyclical prices.” The article is available in its entirety at this link.

Our auto buyer will give you the opportunity to sell your car in Hilliard, New Albany and Pickerington. Proper auto recycling of junk cars is important to protect the environment. As an established buyer of junk cars in Reynoldsburg, Upper Arlington and Westerville, we can get the job done. When seeking cash for junk cars in Whitehall, Worthington or Brice, there is no reason to look further. Our auto recycling of junk cars system is quick and easy, regardless of whether the vehicle is located in Harrisburg, Lockbourne or Marble Cliff.