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How Tariffs Affect Your Junk Car Prices
It seems like every day we’re hearing about new tariffs being imposed or existing tariffs being raised. With the world’s great powers embroiled in bitter trade wars, it’s hard to figure out how the tariffs can impact the economy. In particular, the tariffs on steel and aluminum could have a major effect on the production of new cars as well as the selling of old cars for junk. If you’re thinking about selling your old car to a Florida junkyard nearby, here are some ways tariffs could make a difference.
The Challenges of Tariffs
While it’s hard to say what the long-term impact of tariffs will be, there’s a consensus among economists that there is a price to be paid by the US economy in the short term. Farmers lose markets that are never to return, defense contractors have to spend more to build the same machinery, and consumers may be hit with sticker shock the next time they buy an expensive household appliance or new car. Furthermore, tariffs have the potential to result in endless trade wars that can go on for years, putting the entire world economy at risk. Conversely, however, one part of the economy that could benefit from tariffs is the metal recycling industry.
Rising Domestic Steel Prices
The clearest result of steel and aluminum tariffs will be seen in rising prices for domestic steel. When tariffs are placed on foreign producers of finished steel, this can make their products unaffordable, forcing manufacturers to search out producers of domestic steel. As it currently stands, American steel producers will never be able to keep up with the increased demand, forcing manufacturers to turn to other sources. When it comes to finding more finished steel, there’s no better resource than recycled steel.
The owners of junkyards in Florida—and everywhere else—will have to expect to pay more for junk cars. This is far from being a problem, however. In fact, as prices for foreign steel increase, it will have the effect of increasing prices for all types of steel, whatever its origin. While junkyards will have to pay more for cars, they can sell the junk steel and aluminum at marked up prices which could turn this era of tariffs into one which will prove rewarding to all those in the metal recycling industry—if not to the economy as a whole.
How Junk Sellers Benefit
If you have an old car that you’re not driving, now may be the perfect time to sell. In order to have the junk metal they’ll need to meet the increasing demand, junkyards will be competing with each other to offer the best prices to sellers. This will have the effect of increasing the prices of junk cars across the industry, benefitting all those who are in the market to sell.
If you’re ready to get that old car you’re not using for cash, contact U Pull & Save. We’re the leading salvage junkyard in Florida, and we’ll always offer you the best price so you can recycle your car in an environmentally friendly manner. Call us today for a free quote at (239) 337-7300.