Auto wrecking yards are fascinating places where people can sell their junk vehicles or even get used parts for cheap. But have you ever wondered how these yards make their money? We are here to discuss it today, and you’re likely to find that the answer is exactly what you are expecting.
Auto wrecking yards make money in two main ways:
- Selling Parts – Auto wrecking yards make the bulk of their money by reselling parts from the junk cars they have purchased, especially discontinued or hard-to-find auto parts. These can be anything from engines and transmissions to frames, doors, bumpers, lights, seats, and fasteners. They are able to sell these parts for a higher price than their scrap value to make a profit.
- Selling Scrap Metal – If a car doesn’t have suitable parts for reselling, auto wrecking yards can still make money from the scrap metal. These junk cars are crushed and then sold to metal recyclers based on the weight of the steel, aluminum, or other metal.
While auto wrecking yards mostly make money from the parts and scrap metal they get from junk cars that have been sold to them, some might make extra by offering additional services like vehicle towing.
Part of making money in an auto wrecking yard also has to do with organization. Keeping similar parts in designated areas so customers can easily find them as well as keeping those parts protected from the elements are important for making the most of what the yard has to offer and presenting it in the best way.