Auto Scrap Self Service
Here at Cash 4 Cars Cleveland, a source to scrap a car in Cleveland, Independence and Warrensville Heights, we have noticed a trend in the auto scrap and recycling industry. Many of the places where to junk a car for cash and those you may end up selling a junk car to are transitioning to a self-service auto recycling business model. This factor could greatly impact the price for a wrecked car or damaged vehicle. When you scrap a car in Cleveland, Maple Heights or Willoughby, many of the places where to junk a car will place the vehicle in their yard where bargain shoppers can come through and remove the components themselves for purchase. In this article we hope to illustrate this side of the industry, which seems to be gaining popularity.
In the September 2012 edition of American Recycler News, a story composed by Mark Henricks titled ‘Automotive recyclers embrace self-service (SS) salvage yards’ that pointed out some of the following: “It takes a lot for an industry with more than 8,000 businesses and $22 billion in annual sales to change direction. SS yards that permit customers to remove their own items from scrap vehicles are beginning to supplant traditional full-service operations.
Dimitri Gerontis of S3 Software thinks the number of SS yards is increasing by 20%- 25% per year. About ½ of new yards open up specifically to be SS. SS offers yards features compared to the usual full-service yard, where workers remove items for customers. For Chris Mantas, of Tear A Part, in Salt Lake City, the big draw was SS’s ability to increase the number of customers visiting a yard.
Full-service yards typically buy fewer vehicles & keep them longer than SS facilities. A full-service operator will attempt to sell all or most of the valuable items on a vehicle before taking the step of shredding it. SS yards, buy more cars, sell fewer items off each and are quicker to move vehicles to shredding. A typical SS yard might do 800 vehicles per month. One such advantage is apparent at the auctions where operators purchase cars for inventory. While a full-service operator, who intends to keep a car until a large percentage of its components have been sold, might buy only one particular year and model of a vehicle, a SS operator might buy dozens of the same type of car, often paying less per vehicle. The SS operator will keep the vehicles for a few weeks or months, selling a portion of the valuable items. Because the SS operator is buying the vehicle at a price justified by the commodity market, he can afford to undercut the full-service yard on in-demand, high-cost items like engines. Studies show most items from a salvage vehicle sell in its first few weeks on the lot—then it drops off 75%.
Dealing with customers is also very different, and has important implications for yard layout, staffing and customer policies. Yards have to be laid out with plenty of space for customers to pass through, and the vehicles have to be accessible to allow customers to remove items themselves. Safety is a critical component of a SS facility. Customers are usually barred from bringing certain sorts of tools, usually jacks & air-powered tools in. Yards also have to obtain adequate liability insurance, which can be costly. Overall, costs can be lower, as SS yards require fewer & less-experienced employees. Along with added revenues from sending more cars to the shredder, this can make SS yards more financially appealing than their full-service cousins. There is more of a margin for error because of the commodity income.” The complete article is available here.
The article above was generated in 2012, where the commodity pricing paid by shredders was twice was it is now in 2015; therefore, the SS yards are not enjoying that solid income stream anymore. As a result the price for a wrecked car is noticeably lower when selling a junk car regardless whether you scrap a car in Cleveland, Mentor or Berea.
An October 2015 article on telegram.com explained the do it yourself auto recycling pricing as follows: “Armed with his own socket wrench, the do-it-yourself mechanic will fork over a $2 entrance fee to explore the yard where older model cars (2004 and older) sit for dismantling. The average door for a car runs in the range of $150 to $200. At the Pull-A-Part (DIY), it’s around $35.” The complete article is available at this link.
Many vehicle owners will hear that their car needs a costly repair(s). They may be at a Firestone Auto Center, a Conrad’s location or a transmission repair shop. Often these individuals will ask themselves where to junk a car for cash and move on. Call (216) 359-1010 to speak with our junk car buyer and receive a price for a wrecked car or damaged vehicle. Selling a junk car to us is easy and most vehicles can be towed away the same-day. We are available to buy junk car, trucks and SUV’s Monday through Friday from 8AM to 5:30PM and Saturday from 8AM to 3:30PM.