Cash for Cars

It used to be that cars for cash was a broad term that local scrap metal dealers, used parts businesses, and auto auctions used, in order to attract a supply. The scrap metal dealers would estimate how much steel was in your car, how much it would take to melt it down, and how much it would cost to have a guy go tow it away from your house. Then they'd offer about half of what they thought they could get for the steel in you car.

The used parts guys use the same kind of math. They'd compare local demand and pricing for the parts that were salvageable from a car, add in the costs of stripping them and disposing of the rest of the car, and make the lowest cash offer for cars that they expected people would take.

Lastly, there were many independent operators with a tow truck and guts, who advertised to pay cash for cars. They knew what could be gotten for junk cars at local auto auctions, and they'd make low ball cash offers hoping to get a better price from the individuals and businesses that haunt auto auctions.

Though these three types of car removal and junk operations still exist, they are increasingly being pushed aside by large operations with national or regional reach, and the economies of scale to offer more for junk cars than the small local operator can.