$200 is about right, there not going to sell most of the parts from it, and it won't bring a hell of alot more for scarp.You did ok.If you had taken it there yourself you might have gotten more for it, but thats a pain in the **** to tow it, and a waste of gasoline.

It was a 17 year old car that needed a bundle of expensive work. Your friend was wrong,as it wasn't worth $500. It was worth $200.

You didn't get screwed, you chose to sell to a junk yard rather than having to deal with retailing it. You got what it's worth.