How can you find a junkyard in your area that will pay cash for an old car?

I'm not sure about your area, but were I live(MN) most junk yards wont give you anything(pay for the towing to get it there at most). You are better of donating the car, usually a tech. college will take it and then you write it off for a tax rebait.

Go to the yellow pages. Call the auto recyclers there. If the car will drive to the junk yard, you should expect it to have some value. If it must be towed, different yards may have different needs and may pay different prices if anything at all. If a yard needs your car, they should be willing to pay something for it. A friend just sold a repairable, but not very driveable 1994 jeep grand Cherokee for $500 to a junk yard. It needed $1000 to $2000 worth of transimission work, which the junk yard can easily do for $500 and sell the Jeep for $2,500 when finished.

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Why give it away for free? Put it on Craigslist with a short description and couple of photos. BE HONEST about what's wrong with it, and someone will buy it no matter what's wrong with it (for parts or repair). The Yellow Pages as mentioned above is also a good second alternative, call around for the best offer, and some of them will negotiate. Or search for "junk car" from the homepage of your local Craigslist and find dozens of ads by people looking for unwanted non-running cars.