Why the American junkyard is dying

Jimmy cooper said:
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.
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Pre-Beijing olympics was a boom time for us. China was a major buyer of ferrous and non-ferrous scrap. It wasn't unheard of for flattened cars to bring $300+ per ton.

Our November 2014 quote is less than $200/ton, and the reason quoted is China isn't purchasing as much as prior months.

It's fun to convert thinking from individual alternators and door handles to tonnage of commodity level scrap.
 
I have a 23 year old Mercedes, and a 24 year old BMW. There are plenty of good things for me at a junkyard. My '08 BMW? not so much. I think it comes down to OBD-II+ and/or CAN bus equipped modern cars vs older vehicles that the everyman can still tinker around with. Both my old cars are long term projects with a lot of elbow grease, money, and time invested in them. My modern car is just a tool to get to work and back without worry.
 
AggieMike88 said:
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."
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Good response, you really are addressing the issues out there.
 
Hey Gang!!!

I've started posting my recently acquired vehicles that I am parting out to Craigslist.

http://dallas.craigslist.org/search/sss?userid=246386058

This link should be durable and more and newer vehicles will show as Craigslist publishes my submissions.

Call, PM, email, or generally harass me if you have any questions.
 
docmirror said:
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.
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I'm curious as to which Focus you have. I had a 2002 Focus for 12 years, put 127,000 city miles on it, never had an axle issue. The only things I had to replace more than once were the thermostat housing, crossover pipe (both are plastic and handle hot coolant) and the clutch master cylinder. Twice for each of those.
 
SOHC or DOHC engine in your focus?
 
FormerHangie said:
I'm curious as to which Focus you have. I had a 2002 Focus for 12 years, put 127,000 city miles on it, never had an axle issue. The only things I had to replace more than once were the thermostat housing, crossover pipe (both are plastic and handle hot coolant) and the clutch master cylinder. Twice for each of those.
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I have a 2001 Focus hatchback with the Zetec. Mine has 223k. If you haven't replaced the ignition yet, or the right axle, it's coming. I have a tow hitch on mine and I tow light trailers, so it gets a hard workout. Also, if you haven't done the three motor mounts yet, that's coming too. Use Ford parts for those, the aftermarket don't work.

don't wait too long on the ignition module. Once the key gets stuck in there, it costs twice as much to replace.
 
docmirror said:
I have a 2001 Focus hatchback with the Zetec. Mine has 223k. If you haven't replaced the ignition yet, or the right axle, it's coming. I have a tow hitch on mine and I tow light trailers, so it gets a hard workout. Also, if you haven't done the three motor mounts yet, that's coming too. Use Ford parts for those, the aftermarket don't work.

don't wait too long on the ignition module. Once the key gets stuck in there, it costs twice as much to replace.
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Mine had a DOHC Zetec. I sold it in March. I never did have an issue with the ignition module, I did have to get the coil packs done a little after 100,000 miles, but that was the only ignition related thing I had to get fixed. I did do the motor mounts somewhere around year 9.

I have had no luck with aftermarket parts other than a few name brands, I just don't use them anymore. My current ride is a plug in hybrid, I'm not sure how much I could or would want to do to it, it's pretty much going to need dealer service. Assuming the brakes ever need replacing, that I could do, as well as struts/shocks, but other than that I can't see myself getting under the hood.
 
I just bought a Saturn Vue hybrid. It's not really a hybrid at all, just has a start/stop battery pack. But - the good news is I get a reduction on my registration, and lower insurance, and I can drive in some HOV lanes solo. I am putting the Focus out to pasture. It's been a decent car, but things are wearing out that will take me too long to fiddle with in the junkyard.
 
That you two have the DOHC is good. That was actually a decent motor for that little roller skate. They tend to last a long time and I rarely get any requests for the engine.

The SOHC however, had some flaw that caused an increased failure rate. For a time, I couldn't keep enough of them around and would sell them for $1400-1500 a copy.

The DOHC in comparison, went for less than $400, with a 6 month warranty, and I had it for nearly 3 years before we found someone who wanted it.
 
Yeah, it's not the engine internals that I worry about. Now the rear hatch latch is weak, I'm hearing the TO bearing whine a little when shifting, the fog lights just stopped working last year, and the AC has a slow leak so I have to top it up every year. It's just getting worn out. The engine will be good for another 100k prolly.
 
Mike, just curious, do you pretty much buy all your cars at auction, or direct from insurance companies? How many are people off the street selling you their wreck? Do you ever fix any of these cars? Some of those on your Craig's list posting don't look that bad, or are they just worth so much more in parts?

The "pick a part" self service model always seemed like genius to me. I have used them for decades because I have always seem to have old cars around, so I get how those salvage operations work. Your pro operation I don't fully understand. Who are the buyers? Are they DIYers trying to save money, or is it mostly pros? Is it mostly just big items like engines, transmissions and differentials?

It seems like whenever I have taken a late model car, or truck into a pro for repair, or collision work, I have never been offered used parts as an option, nor have I usually wanted them. I guess that's why you need to keep your operation small, lean and efficient, not big and sloppy like the old traditional model. Smaller, focused, but more profitable market.

Do specialty yards that only cater to one specific brand, or model of car do well in the industry? I once saw a Mustang only yard for sale and thought that with the internet, that might actually make good business. I thought I might be good at that, but maybe not. :dunno:

Anyhow, sorry for all the questions. The automotive salvage yard has always felt like home to me for some reason. I guess it's the collector in me as well as my upbringing where it was drilled into my head not waste anything and to always try to repair and not buy new with anything, not just cars.

Thanks for posting your insights thus far! :cheerswine:
 
Specialty yard would be hit or miss and subject to market whim. Popular models have a good market, however these days there's also a good aftermarket. There is no part I can't buy new for a 65 Mustang for example. Most specialty yards are the outgrowth of a hobby or mental defect by hoarding.:lol:
 
Well, that's 'cause Pick'n'Pull is out by Travis. :)

There are a number of full service specialty yards in San Jose that have been there for many years, so it can't be that bad, even with Silicon Valley costs. Like a light truck specialist in Santa Clara and an all-import yard in downtown. You won't find a specialty yard as specific as one model. Maybe a brand such as Volvo.

No mechanic offers used parts. You have to ask, or at least balk at a new part price. The mechanics assume everyone wants new OEM only for everything. While I'll do that for electrical parts (excepting those I can test reliably in the field, like VW distributor pickups), there are a large number of parts that work well used.
 
My wife has a 2000 Ford Windstar mini-van with ~185,000 miles.

She's shopping for a new mini-van now, but I'm wondering what to do with this old one.

It runs and drives ok, the drive train is in basically good shape, but some of the many plastic compartment doors are broken, and the motorized side doors stick pretty often.

Would a salvage yard want a car like this?
 
JimNtexas said:
My wife has a 2000 Ford Windstar mini-van with ~185,000 miles.

She's shopping for a new mini-van now, but I'm wondering what to do with this old one.

It runs and drives ok, the drive train is in basically good shape, but some of the many plastic compartment doors are broken, and the motorized side doors stick pretty often.

Would a salvage yard want a car like this?
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Yes. There are yards that will take any car running, or not. Complete or not. They will pay you accordingly. Likely in your case with the price of steel down, they take it off your hands for free. They will tow it away. I doubt they will give you money for it. If you want money for it, Craigslist is your friend.
 
JimNtexas said:
My wife has a 2000 Ford Windstar mini-van with ~185,000 miles.

She's shopping for a new mini-van now, but I'm wondering what to do with this old one.

It runs and drives ok, the drive train is in basically good shape, but some of the many plastic compartment doors are broken, and the motorized side doors stick pretty often.

Would a salvage yard want a car like this?
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Windstar is a very popular vehicle with the Latino crowd. I would try listing it for 80% of book on Craigslist and accept 65%.

The auto recyclers around Austin will give you about $300-400 for the van. But selling it as a used car will net you 3x to 4x that, at least.
 
JimNtexas said:
My wife has a 2000 Ford Windstar mini-van with ~185,000 miles.

She's shopping for a new mini-van now, but I'm wondering what to do with this old one.

It runs and drives ok, the drive train is in basically good shape, but some of the many plastic compartment doors are broken, and the motorized side doors stick pretty often.

Would a salvage yard want a car like this?
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$1200 on Craigslist and it goes away in a day.
 
Dav8or said:
Mike, just curious, do you pretty much buy all your cars at auction, or direct from insurance companies? How many are people off the street selling you their wreck? Do you ever fix any of these cars? Some of those on your Craig's list posting don't look that bad, or are they just worth so much more in parts?

The "pick a part" self service model always seemed like genius to me. I have used them for decades because I have always seem to have old cars around, so I get how those salvage operations work. Your pro operation I don't fully understand. Who are the buyers? Are they DIYers trying to save money, or is it mostly pros? Is it mostly just big items like engines, transmissions and differentials?

It seems like whenever I have taken a late model car, or truck into a pro for repair, or collision work, I have never been offered used parts as an option, nor have I usually wanted them. I guess that's why you need to keep your operation small, lean and efficient, not big and sloppy like the old traditional model. Smaller, focused, but more profitable market.

Do specialty yards that only cater to one specific brand, or model of car do well in the industry? I once saw a Mustang only yard for sale and thought that with the internet, that might actually make good business. I thought I might be good at that, but maybe not. :dunno:

Anyhow, sorry for all the questions. The automotive salvage yard has always felt like home to me for some reason. I guess it's the collector in me as well as my upbringing where it was drilled into my head not waste anything and to always try to repair and not buy new with anything, not just cars.

Thanks for posting your insights thus far! :cheerswine:
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Got lots to share in answering the question. But need to keep making/selling the donuts instead of writing on a forum. I'll work on the answer this evening and post.
 
AggieMike88 said:
Windstar is a very popular vehicle with the Latino crowd. I would try listing it for 80% of book on Craigslist and accept 65%.

The auto recyclers around Austin will give you about $300-400 for the van. But selling it as a used car will net you 3x to 4x that, at least.
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Thanks Mike, that's helpful. A while back I visited a friend's house and noticed an old Toyota Corolla sitting in the back yard. I asked about it, and he told me that the A/C went out, both window crank handle broke, and the battery died so they just parked it and got a newer car.

I bought it for $500, spent about $200 fixing it up and sold it for around $1500 to an immigrant family. I just parked it with a for sale sign in front of my wife's office, which is on a busy street.

While it was nice to make a few bucks it was kind of sad dealing with people who had no ID, no insurance, and not much cash.

One lady was upset with me because I wouldn't take her 'good as gold' cashiers check. I told her I'd meet her at her bank, she could cash here check and we'd transfer the title there. She didn't like that.

I guess I'll see that Carmax will give me for this old van.
 
JimNtexas said:
Thanks Mike, that's helpful. A while back I visited a friend's house and noticed an old Toyota Corolla sitting in the back yard. I asked about it, and he told me that the A/C went out, both window crank handle broke, and the battery died so they just parked it and got a newer car.

I bought it for $500, spent about $200 fixing it up and sold it for around $1500 to an immigrant family. I just parked it with a for sale sign in front of my wife's office, which is on a busy street.

While it was nice to make a few bucks it was kind of sad dealing with people who had no ID, no insurance, and not much cash.

One lady was upset with me because I wouldn't take her 'good as gold' cashiers check. I told her I'd meet her at her bank, she could cash here check and we'd transfer the title there. She didn't like that.

I guess I'll see that Carmax will give me for this old van.
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The Craigslist experience isn't as bad as people make it out to be. I sold an inexpensive car off of Craigslist earlier this year with no real hassles.
 
AggieMike88 said:
The auto recyclers around Austin will give you about $300-400 for the van. But selling it as a used car will net you 3x to 4x that, at least.
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Wow! That's pretty good for salvage. Last year I had to dispose of an '84 Ford E-350 super duty van that had a solid roof rack and tow hitch. It had not run since 2007, looked terrible inside and out. I was using it as a storage locker. Lots of metal though.

The best I could get from either Craigslist, or the salvage yards was $275. Based on just the salvage metal, I wouldn't have thought a Windstar would be worth that much and I figure the self serve yards would be full of them.

My old van was missing the carburetor, the starter, most of the ignition system, lights, had a laundry list of things wrong with it and hadn't moved since 2007. About 7 months later, I got a call from the salvage yard that bought it. It seems they lost the paperwork and needed some info from me because they were going to register it!! :yikes: I couldn't believe it.
 
Dav8or said:
Wow! That's pretty good for salvage. Last year I had to dispose of an '84 Ford E-350 super duty van that had a solid roof rack and tow hitch. It had not run since 2007, looked terrible inside and out. I was using it as a storage locker. Lots of metal though.

The best I could get from either Craigslist, or the salvage yards was $275. Based on just the salvage metal, I wouldn't have thought a Windstar would be worth that much and I figure the self serve yards would be full of them.

My old van was missing the carburetor, the starter, most of the ignition system, lights, had a laundry list of things wrong with it and hadn't moved since 2007. About 7 months later, I got a call from the salvage yard that bought it. It seems they lost the paperwork and needed some info from me because they were going to register it!! :yikes: I couldn't believe it.
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As related in other posts... it's supply and demand.

The engine and transmission for the Windstar are still desirable items. Combined, a savvy recycler could get about $1300-1500. So investing $350-400 to buy it, attributing $1000 (average) overhead to process, you're still making a bit of profit when you figure in cats/cores/scrap/crush.

Contrast to your 1987 Van, there are practically no customers for the major parts (eng/tran/wheel/rear axle/etc). So the only valuation is scrap metal.

There is a business trick about increasing profitability by purchasing vehicles that lose you money. But that is for another post.
 
FormerHangie said:
The Craigslist experience isn't as bad as people make it out to be. I sold an inexpensive car off of Craigslist earlier this year with no real hassles.
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The key to selling a used car on Craigslist is to be as honest and detailed as possible and to include loads of pictures. It helps minimize the number of people who call with dumb questions. I sold my old Sportage that way to the first family that looked at it.

The more information you put in the ad and the more honest and accurate the listing, the easier your selling experience will be. I also let people contact me any way they like because I find it annoying when sellers set all kinds of rules about how they want to be contacted. The way I see it, I'm trying to sell something, so I want to make it as easy for buyers as possible.

Rich
 
RJM62 said:
The key to selling a used car on Craigslist is to be as honest and detailed as possible and to include loads of pictures. It helps minimize the number of people who call with dumb questions. I sold my old Sportage that way to the first family that looked at it.

The more information you put in the ad and the more honest and accurate the listing, the easier your selling experience will be. I also let people contact me any way they like because I find it annoying when sellers set all kinds of rules about how they want to be contacted. The way I see it, I'm trying to sell something, so I want to make it as easy for buyers as possible.

Rich
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If you check my CL listings (see the link in my signature), I am in total agreement with this.

But I still get a laugh when they call, open the conversation
"I see on Craigslist you're parting out a _____. What parts are available?"

"Scroll down a bit, everything from that car is listed, along with what it fits."

"Oh." (I hear the gears trying to engage). "When are you open?"

"Scroll back to the top, that info is just above the parts list.

"Oh. And how do I get to your place?"

[frustrated mental sigh]"Well, there is a map on the add to the right of the pictures..."

"Oh. And what's the name of this place again?"​
 
AggieMike88 said:
If you check my CL listings (see the link in my signature), I am in total agreement with this.

But I still get a laugh when they call, open the conversation
"I see on Craigslist you're parting out a _____. What parts are available?"

"Scroll down a bit, everything from that car is listed, along with what it fits."

"Oh." (I hear the gears trying to engage). "When are you open?"

"Scroll back to the top, that info is just above the parts list.

"Oh. And how do I get to your place?"

[frustrated mental sigh]"Well, there is a map on the add to the right of the pictures..."

"Oh. And what's the name of this place again?"
​
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Sadly we have legislated death from stupidity out of existance for the most part.
 
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