Why the American junkyard is dying

I spend quality time in junkyards almost every month. I have three cars that need an array of parts cuz they are over 200k miles. The same thing today, as last decade and the one before that. The parts that everyone needs, are the wear parts that are gone or already thrashed when the car gets to the yard. Frex; The right side CV axle for Focus is notorious for only lasting about 40k miles. They are a common failure item, so I go to the yard to try to find one. There are 5 chassis in the yard that fit my car, and on all 5 chassis the axle is either already gone, or is in worse shape than mine. Go buy a new one. Same with tail lenses, or a radiator. Try to find a good used part on a salvage car means getting the right car with the right damage, at the right time. Usually I plan to spend three trips to get what I need, or just say eff it, and go buy it new.
 
All depends. Try denaples in dun more, penna. They strip a lot of parts before shredding and are reputed to be the largest exporter of used car parts in the US
. Or try Weitsman scrap in Owego, n.y. Monster yard doing big time shredding. They are not dying, they simply have changed a lot. Big money if run correctly. Bonovolio in Camden NJ , huge exporter.
 
Lot of South American buyers of cars that would normally go in a yard around here as well.
 
For me it is because cars are throwaway models now. By the time they make it to the junkyard, the parts are mostly useless.

I do frequent "u pull it" though because I love getting stuff cheap for my race car.
 
Used to do lots of picking, but times have changed. Why drive 30 minutes to walk around in the mud to see if there is a decent tail lens for my 2007 Expedition, when I can (and did, just today) go to eBay and find a new one for $43 shipped? Thought I might just be getting old and soft, but then I went flying: time better spent! :yes:
 
For me it is because cars are throwaway models now. By the time they make it to the junkyard, the parts are mostly useless.

I do frequent "u pull it" though because I love getting stuff cheap for my race car.

It depends on why it made it to the yard.
 
For me it is because cars are throwaway models now. By the time they make it to the junkyard, the parts are mostly useless.

People continue to say that, but I find it's mostly just a change in the designs. For example, I can't change ball joints on my BMW, I have to change the entire control arm.

Oh wait, my Avalanche (which also has ball joints that can be changed), is the same way. And it's a hell of a lot easier to do it that way than to change just the ball joint and then the bushings on my Mitsubishi's control arm, with pricing being about the same.

Computers have gotten more complicated, but once a car gets a few years on it then the software gets reverse-engineered or otherwise hacked, and then you get great insight into what the car's computer is thinking. People routinely drive BMWs like mine to 250-300k. 17 years ago, people were saying they were too complicated to be worked on.
 
I too used to visit junkyards long ago, but hadn't for many years until last Christmas when I stopped to visit Mike's yard to scrounge-up some headrests for my plane. (long story for later)

I was surprised it was so small compared to what I used to scrounge through...with hulks spread all over dozens of acres typically. And they sat, and sat, and sat until they rusted away I presume. Mike's yard is just a couple of acres (I think) and runs on turning inventory quickly. Everything is accounted for in his computer, such that it makes choosing what to buy much easier and he won't waste precious space on the lot that would take years to turn a profit. His cars are only there for some months before getting fully recycled. Very efficient way to run a recycling operation, but only helpful for those of us with later model cars to support. If you're looking for something for a '73 Plymouth... it ain't there. :D
 
Computers have gotten more complicated, but once a car gets a few years on it then the software gets reverse-engineered or otherwise hacked, and then you get great insight into what the car's computer is thinking. People routinely drive BMWs like mine to 250-300k. 17 years ago, people were saying they were too complicated to be worked on.

I bought my current 2004 BMW with 104k on the odometer and hope to take it to 250 or 300k. My biggest fear now is parts, but it is probably un-founded. I can still by new suspension, brakes, and drivetrain parts for my '88 M6. They are relatively straight-forward to work on, despite their reputation.

If I had a big hangar I would buy another E46 or two and pickle them as I love the car and the lack of iDrive or other electronic CRAP that has infested the modern car. I love having a simple 6 spd manual transmission, with no complicated electronics to fail. I fear I might not have that option again with a newer car...only auto or SMG, both of which are more expensive and prone to expensive failure.
 
I too used to visit junkyards long ago, but hadn't for many years until last Christmas when I stopped to visit Mike's yard to scrounge-up some headrests for my plane. (long story for later)

I was surprised it was so small compared to what I used to scrounge through...with hulks spread all over dozens of acres typically. And they sat, and sat, and sat until they rusted away I presume. Mike's yard is just a couple of acres (I think) and runs on turning inventory quickly. Everything is accounted for in his computer, such that it makes choosing what to buy much easier and he won't waste precious space on the lot that would take years to turn a profit. His cars are only there for some months before getting fully recycled. Very efficient way to run a recycling operation, but only helpful for those of us with later model cars to support. If you're looking for something for a '73 Plymouth... it ain't there. :D

That and the "Pick a Part" model are the most common I see anymore, Mike's model aimed at the professional repair sector and Pick a Part aimed at the DIY sector. I see both with high turnover and limited time in the yard. There are guys who make their living stripping at the local Pick a Part to ship to the Bahamas and Caribbean.
 
I bought my current 2004 BMW with 104k on the odometer and hope to take it to 250 or 300k. My biggest fear now is parts, but it is probably un-founded. I can still by new suspension, brakes, and drivetrain parts for my '88 M6. They are relatively straight-forward to work on, despite their reputation.

If I had a big hangar I would buy another E46 or two and pickle them as I love the car and the lack of iDrive or other electronic CRAP that has infested the modern car. I love having a simple 6 spd manual transmission, with no complicated electronics to fail. I fear I might not have that option again with a newer car...only auto or SMG, both of which are more expensive and prone to expensive failure.

I think BMW will hold on to manual transmissions (at least in the 3s and Zs/Ms) for a while given that there's a certain pride in that among BMW owners. I'm actually looking at putting a 6-speed out of an E39 into my E38 when the 5HP30 craps out. It's not a hard swap to do.

Parts will be no big deal. If you haven't found them already, www.fcpeuro.com is where I buy all my parts. And I've bought a lot of parts...
 
I haven't walked around a yard for years.
Last time I needed a part was for my 2006 Escape. It was the rear sub frame or what ever they call it. Bolts rear dif to unibody. I did not pull it because for $10 more the yard would do it. Much easier for me :D
With computers system they use now days it makes it much better. You call and they either have part on shelf or can tell you if they have a car that might have the part in the yard. No more going to the yard and just wandering around hoping they have the car you need.
 
Like many media outlets, some points correct, others exaggerated for pot stirring.

Self service yards are not going away. They are one of the largest growth areas in our industry. What is going away are the poorly run and managed places. Taking their spot are VERY well organized places that have scary smart owners who really understand the math and mechanics of the businesses. I have plans of greenfielding a self service yard within 5 years or less.

I run a "full service" facility where I pull the parts for my customers. My average year of vehicle is 2005.6. On just two acres of land we processed an average of 40 cars per month this year. We specialize in trucks, but look for any year, make, model that will be profitable. We do use lots of computer power to acquire and track demand and supplies. Vehicles are bought at auction with this information. And I use a tablet computer and this information to inventory each vehicle within 48 hours of it landing. Finally, on any of my parts, a multi-year warranty is available, as is a labor cost protection policy.

Any and all on this board are welcome to come visit and see how this is done.

Oh, about the J word. If you want that, go visit the guys in Grand Prairie. If you want good quality and good value, and your part problem solved, come see me.
 
That and the "Pick a Part" model are the most common I see anymore, Mike's model aimed at the professional repair sector and Pick a Part aimed at the DIY sector. I see both with high turnover and limited time in the yard. There are guys who make their living stripping at the local Pick a Part to ship to the Bahamas and Caribbean.

This is a good description of my customer mix. Lately about 77-23 professional repairer (both mech and collision) to retail.

As others have said, the ranks of the DIYers have really shrunk since my dad starts the yard a few months after Brannif folded (he was a 727 captain). So we are working hard to become the place the pros come to when they want to obtain ain profitable parts.
 
I went to pick n pull in Aug for a fuel pump housing for the Focus. It's over $300 from Ford, it's about $180 from O'reilly, and I got it at the yard for $40. The old one suffered from the runs due to Ethanol fuel and me letting it sit for more than a month without driving. The submerged pump would run fine, but the seal around the pump nipple just vegged away until it wouldn't hold pressure. Weird fix, the car would run fine for the first half tank. Then when the fluid dropped below the pump outlet, it would just spooge out of the seal. Then I went home and found it for $100 shipped on rockauto. meh, with my snips, it only took 15 min to pull it and I was headed that way anyway. Runs fine, should last another 12 years. Yards serve a purpose.
 
By the way, the smart self service places are the ones who are more of a high value metal extraction process who sell parts to add to the revenue. These places bring in 30-40 end of life vehicles A DAY, and grab all the cats, aluminum (clean, cast, alloy, etc) copper, avaluable core parts (example, a 2001 Silverado rack and pinion steering gear currently brings $85 from the larger core buyers) nd more. Cars sit about 45-60 days before they are flattened and sold to the shredder.

For places like this, it is very much about commodity volume and not so much filling the request of the individual vehicle owner who wants a $25 alternator.
 
I haven't walked around a yard for years.
Last time I needed a part was for my 2006 Escape. It was the rear sub frame or what ever they call it. Bolts rear dif to unibody. I did not pull it because for $10 more the yard would do it. Much easier for me :D
With computers system they use now days it makes it much better. You call and they either have part on shelf or can tell you if they have a car that might have the part in the yard. No more going to the yard and just wandering around hoping they have the car you need.

And if I don't have it, I am networked with 500 of the top yards in the country and can quickly find most major parts of the current years and models. Not so much for the small never inventoried trim or the old ELV or not profitable car. It if you need a mainline more then $50 part, I can find it and be your middle guy to get it and provide the right guarantee for it.

And I do operate nationwide. Been many cases where the buyer was on one coast, called me for something that I sold out of a few hours ago (the search networks are on 24hr delay), but I found one on the opposite coast for the right price. Brokered the deal, had the part direct shipped, and customer, supplier, and me are all happy happy.
 
Henning, remember the "Parts" yachts? I, II, III, IV, etc? Wasn't that the son of a junk yard owner who computerizd the operation? Gary Blonder, I believe. His reputation is, ahem cough cough, less than stellar these days ....

Big money in that biz....
 
Henning, remember the "Parts" yachts? I, II, III, IV, etc? Wasn't that the son of a junk yard owner who computerizd the operation? Gary Blonder, I believe. His reputation is, ahem cough cough, less than stellar these days ....

Big money in that biz....

I lived in Hartford in the 70's when Blonder's was big in used car parts. Had it going on, that boy. Heavy radio and TV advertising, cleaned up parts inventoried on shelves ready to go. Good business, but his real money came from heavy leveraging in real estate, not the parts operation.

There's a guy here in MD, Crazy Ray's. Has a string of pik'n pulls coupled with recycling operations on the same site. Makes fat stacks.
 
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I needed to get a new taillight for my daughter's 2000 Windstar minivan. Dealer wanted 174.00 and would have to ship in in from out of town. local junkyard Redmans which is 3 miles from me had the part off the vehicle. I went in to the office had the part in 5 minutes for 30.00. Life was good.
As a FYI, Maryland changed the law on fixing broken taillights. You can no longer get the flexible colored plastic repair kits. You have to replace the part. My daughter had gotten a broken taillight and got a ticket last summer and I fixed it and told her to find a cop to sign it off. She did not bother and her registration renewed at the beginning of the month and she could not because of that ticket. I had to replace the whole assembly, just glad it was relatively painless.
 
Most shops in this area charge ~$80-110 an hour. The economics don't support taking the time to deal with salvage parts in most cases. Sure, some exotics and collectors vehicles they do. OR if you need a costly whole assembly like a complete low mileage engine or transmission. Beyond that it is generally a giant time waster and economically a loser. That said I am happy to pay a small premium for those with more time than money and buy certain things on ebay.

Regarding pick and pull. If you love cars it's hard to go there. Some ameba brained idiot will take a hatchet to a perfect dash and literally chop his way down to the firewall so he can get a $10 switch out. Or I want those factory rear speakers… smash out a perfect rear glass, bend and rip out all the trim, slash up a perfect rear seat, and bingo a $5 set of crappy stock speakers.
 
OTOH, the lunch wagon that shows up at Crazy Ray's in my town has some of the best Mexican green chile pork carnitas I have ever tasted...
 
Regarding pick and pull. If you love cars it's hard to go there. Some ameba brained idiot will take a hatchet to a perfect dash and literally chop his way down to the firewall so he can get a $10 switch out. Or I want those factory rear speakers… smash out a perfect rear glass, bend and rip out all the trim, slash up a perfect rear seat, and bingo a $5 set of crappy stock speakers.

Yup, I watched this on one of my trips to the pick n pull last year. A couple of mouth breathers wanted a window regulator for a Ford SUV. The easiest and simplest way to get it was to take off the door panel, loosen two screws and pull the glass up and out. Since the window was closed, of course they couldn't pull it up. So, rather than unbolt the regulator and lower it a few inches they just started bashing the glass. Well, of course being safety glass, it took a lot more bashing than they thought it would. Finally they got it all knocked out, and started on the door panel. I left with my part, and it looked like they were going to cut or hack the door panel rather than take out the three or four screws, and pull the snaps around the edge. Idiots.
 
Regarding pick and pull. If you love cars it's hard to go there. Some ameba brained idiot will take a hatchet to a perfect dash and literally chop his way down to the firewall so he can get a $10 switch out. Or I want those factory rear speakers… smash out a perfect rear glass, bend and rip out all the trim, slash up a perfect rear seat, and bingo a $5 set of crappy stock speakers.

Saw that a lot when I was scrounging parts for my '51 International pickup at a big u-pick sort of place. Lots of old farm trucks out on the prairies, and those self-serve outfits get their vehicles for the price of hauling them. There were plenty of guys that would trash valuable stuff just to get some little part. The yard didn't allow cutting torches; imagine the devastation (and fires) if they did.

The place changed hands and the prices went way up. The good vehicles stopped coming in, too, probably because they tried to charge the vehicle owners to haul their trash away. The yard was an environmental nightmare, with oil and grease soaking into the ground even though they supposedly drained the vehicles. Crawling under some wreck in the mess, especially after a rain or when the snow was melting, was lots of fun.

Dan
 
Most shops in this area charge ~$80-110 an hour. The economics don't support taking the time to deal with salvage parts in most cases. Sure, some exotics and collectors vehicles they do. OR if you need a costly whole assembly like a complete low mileage engine or transmission. Beyond that it is generally a giant time waster and economically a loser.

You SOOOO need to come visit my place so I can have a chance to change your opinion on this.

For most cars and trucks, I can save just about anyone a good chuck of money even when the install is done by a pro shop.
 
Yup, I watched this on one of my trips to the pick n pull last year. A couple of mouth breathers wanted a window regulator for a Ford SUV. The easiest and simplest way to get it was to take off the door panel, loosen two screws and pull the glass up and out. Since the window was closed, of course they couldn't pull it up. So, rather than unbolt the regulator and lower it a few inches they just started bashing the glass. Well, of course being safety glass, it took a lot more bashing than they thought it would. Finally they got it all knocked out, and started on the door panel. I left with my part, and it looked like they were going to cut or hack the door panel rather than take out the three or four screws, and pull the snaps around the edge. Idiots.

A great story illustrating why I run a full service yard.

Power Regulators are an average of $50-55 with motor and a year guarantee, and my guy can have it out in less than 30 minutes. And I'll still have the door glass, trim card, and maybe the door shell for future sales.

There are a few parts that I will "near match" the pick-n-pull menu price, with a small amount to cover cost of the labor to pull. Many of these are items that I did not purchase the car for, and they add very few dollars to the crush weight revenue. So getting $25-50 for it when I pull is more money from the car, one more sale to reduce unit overhead averages, and a dollar or two to my profit picture.
 
Google denaples scrap yard in dun more, penna. See the picture of just one of the inventory rooms. It boggles the mind. I suppose many other scrap yards buy parts from them. When you walk in the stock room its jaw dropping!
 
Most shops in this area charge ~$80-110 an hour. The economics don't support taking the time to deal with salvage parts in most cases. Sure, some exotics and collectors vehicles they do. OR if you need a costly whole assembly like a complete low mileage engine or transmission. Beyond that it is generally a giant time waster and economically a loser. That said I am happy to pay a small premium for those with more time than money and buy certain things on ebay.

Regarding pick and pull. If you love cars it's hard to go there. Some ameba brained idiot will take a hatchet to a perfect dash and literally chop his way down to the firewall so he can get a $10 switch out. Or I want those factory rear speakers… smash out a perfect rear glass, bend and rip out all the trim, slash up a perfect rear seat, and bingo a $5 set of crappy stock speakers.


Of course they do, that's why Mike's business model exists. I call the yard, they find the part and deliver it to the shop, same as any other parts supplier. I'm not doing my customer any favors by buying a new part at 4 times the cost that will far outlast the rest of their car.
 
You SOOOO need to come visit my place so I can have a chance to change your opinion on this.

For most cars and trucks, I can save just about anyone a good chuck of money even when the install is done by a pro shop.

I should have qualified that more. For collision I would rather have used OEM vs. new aftermarket every time. The problem with mechanical is not as simple as comparing new to used parts price. The labor cost and warranty are the issue. So you sell the customer a used part, they are happy to save the money. If it fails in the next few months. They expect a warranty repair, no matter what they said before when they were saving money. So you are out the cost of a free R&R and now have to try and deal with the yard on the part as well. Even if the yard offers a warranty and honors it, they might not have another one on hand. That is why I use OEM parts in most cases. That said, I'd have an open mind if you still think otherwise.
 
Of course they do, that's why Mike's business model exists. I call the yard, they find the part and deliver it to the shop, same as any other parts supplier. I'm not doing my customer any favors by buying a new part at 4 times the cost that will far outlast the rest of their car.

Not true in many instances. At a great number, you either come get it......or you don't get it. Many also include you taking it off as they are "too busy".
 
I should have qualified that more. For collision I would rather have used OEM vs. new aftermarket every time. The problem with mechanical is not as simple as comparing new to used parts price. The labor cost and warranty are the issue. So you sell the customer a used part, they are happy to save the money. If it fails in the next few months. They expect a warranty repair, no matter what they said before when they were saving money. So you are out the cost of a free R&R and now have to try and deal with the yard on the part as well. Even if the yard offers a warranty and honors it, they might not have another one on hand. That is why I use OEM parts in most cases. That said, I'd have an open mind if you still think otherwise.

A salvage part is OEM.
 
The average car on the road is eleven years old due to the poor economy starting in 2007. Many parts are oem, many are not. American cars especially were built for planned obsolescence. A scrap yard, run correctly, is a big money maker. Lots of unreported money which makes it very juicy.
 
I should have qualified that more. For collision I would rather have used OEM vs. new aftermarket every time. The problem with mechanical is not as simple as comparing new to used parts price. The labor cost and warranty are the issue. So you sell the customer a used part, they are happy to save the money. If it fails in the next few months. They expect a warranty repair, no matter what they said before when they were saving money. So you are out the cost of a free R&R and now have to try and deal with the yard on the part as well. Even if the yard offers a warranty and honors it, they might not have another one on hand. That is why I use OEM parts in most cases. That said, I'd have an open mind if you still think otherwise.

But you won't be out the cost of the R&R if we arrange a labor cost guarantee to be part of the package. And I don't dickk around with a low "won't pay more than this" or a low per hour rate. I will negotiate with the shop to develop a less than retail, but fair to all parties amount to solve the problem. And then when they present me with an invoice for the labor, I immediately write the check to pay it. Occasionally they insist on retail, but if I can turn that into goodwill and future sales, I will still write the check.

But if you declined the offer on the labor warranty, yes, in most cases, you will be responsible for the cost of the second round of R&R.

But for shops and regular retail customers that do frequently and good business with me, I do occasionally relent and allow them to purchase the labor warranty after the fact.

Labor warranties are not that expensive with me. Just 10% of the agreed upon base cost. So on a 1998 Chevy 5.7L engine that you would have paid $1000 for, that $100 additional you gave me for the labor warranty might save you as much as $1000 or more if the provided engine fails for a reason the warranty covers.

And I can also provide you with as much "time coverage" as you want. Each year you want is 10%. But I offer an incentive on a free year when you purchase a 2yr Parts+Labor warranty.

Once we have validated the warranty claim (and we do have folks who try to pull fast ones on us), I will do my best to satisfy the claim as quickly as I can. If I don't have any more the product(s) on hand when the warranty claim comes in, that's solved in one of the following ways:
  1. I ask for appropriate time to acquire a vehicle that will have the needed item(s)
  2. I will try to purchase the product(s) from another auto/truck recycler, even if it means losing money on the original sale (within reason)
  3. I will refund 100% of your purchase price (less freight if applicable) once my part is returned to me, and said part/assembly is 100% complete as I sold it to you, has not been taken apart, and doesn't show signs of external damage or abuse.

But keep in mind that all of this is how I run my business, and isn't indicative of everyone in my industry. However, there is an ever increasing number that do what I described here and more. We are the really good guys in our industry, recognizing that top service and good quality are going to quickly outshine the "low rent" sellers who continuously harm their customers.

One of my mantras is "I want to do good business with customers who will do good business with me."
 
A scrap recycled auto and truck parts yard, run correctly, is a big money maker.

Run correctly is the big key. You need to know how to buy at the right price, and never fall in love with the cars or the parts.

And remembering that you made scads of money three years ago of a particular year/model when you spent a large bundle acquiring it does not mean you will repeat that today. I've learned that expensive lesson... many times.

Remember how John Taffer goes on and on about the science in the bar industry on his TV show? There are many similar things here... supply, demand, inventory, pricing, warranty, crushing, cores, how to pay employees, etc..... the list is long.

But few other industries can run with an average COGS in the 40-50% range and post 8-15% net profit per month.
 
Scrap yards are like so many other industries. You either modernize, get big , keep up with modern equipment to a large extent and watch costs carefully. It was amazing to watch ships being loaded with scrap metal bound for China, etc. back in the 80s - 90s! Big big money was being made. In addition was the scrap ( ferrous) bought thru demolition which went straight to Nucor or any electric ark furnace for recycle. Watching someone like Weitsman or Camden iron and metal process cars, girders, etc. is amazing. Fascinating to me.
 
But you won't be out the cost of the R&R if we arrange a labor cost guarantee to be part of the package. And I don't dickk around with a low "won't pay more than this" or a low per hour rate. I will negotiate with the shop to develop a less than retail, but fair to all parties amount to solve the problem. And then when they present me with an invoice for the labor, I immediately write the check to pay it. Occasionally they insist on retail, but if I can turn that into goodwill and future sales, I will still write the check.

But if you declined the offer on the labor warranty, yes, in most cases, you will be responsible for the cost of the second round of R&R.

But for shops and regular retail customers that do frequently and good business with me, I do occasionally relent and allow them to purchase the labor warranty after the fact.

Labor warranties are not that expensive with me. Just 10% of the agreed upon base cost. So on a 1998 Chevy 5.7L engine that you would have paid $1000 for, that $100 additional you gave me for the labor warranty might save you as much as $1000 or more if the provided engine fails for a reason the warranty covers.

And I can also provide you with as much "time coverage" as you want. Each year you want is 10%. But I offer an incentive on a free year when you purchase a 2yr Parts+Labor warranty.

Once we have validated the warranty claim (and we do have folks who try to pull fast ones on us), I will do my best to satisfy the claim as quickly as I can. If I don't have any more the product(s) on hand when the warranty claim comes in, that's solved in one of the following ways:
  1. I ask for appropriate time to acquire a vehicle that will have the needed item(s)
  2. I will try to purchase the product(s) from another auto/truck recycler, even if it means losing money on the original sale (within reason)
  3. I will refund 100% of your purchase price (less freight if applicable) once my part is returned to me, and said part/assembly is 100% complete as I sold it to you, has not been taken apart, and doesn't show signs of external damage or abuse.

But keep in mind that all of this is how I run my business, and isn't indicative of everyone in my industry. However, there is an ever increasing number that do what I described here and more. We are the really good guys in our industry, recognizing that top service and good quality are going to quickly outshine the "low rent" sellers who continuously harm their customers.

One of my mantras is "I want to do good business with customers who will do good business with me."

Is there a 'back end' for the shop that sells the warranty package?
 
Not true in many instances. At a great number, you either come get it......or you don't get it. Many also include you taking it off as they are "too busy".

As I (and Mike) said, there are two business models, one that caters to the pro market, one that caters to the DIY market. Those that cater to the pro market will get the part to your door from down the street to across the globe.
 
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