Auto Junkyard Fun!

Federal Help for the Vehicle Scrapping Industry

Besides auto salvage yards and scrap recyclers, there is an industry of auto scavengers and auctioneers.

Like much of the economy, the vehicle scrapping business has been suffering a deep recession. Because more people have been deciding to forgo buying new cars and to hold onto their old cars longer, automobile dismantlers have seen a major decline in volume. They have fewer cars coming into their lots which means fewer used parts to sell. Moreover, the price for scrap steel dropped from $550 to $125 a ton in 2008, as carmakers and other manufacturers purchased less recycled steel.

As a result a federal program known as CARS – the Car Allowance Rebate System – was implemented last year in order to assist the automobile industry. Under this program consumers can trade in their gas-guzzlers and clunkers, and receive $3500 or $4500 off the price when they buy a new car. The program has sparked an uptick in new cars sales as well as flooding auto scrap yards with used vehicles still in good condition. Besides small, removable parts like headlights, taillights, blinkers, mirrors, parts of the exhaust system, seats etc. which can be resold as used repair parts, major parts such as transmissions and engines can be sold to auto parts companies who rebuild the parts and sell them to the public.

When a car comes into an auto scrap yard under the CARS program, thethe engine was destroyed by the dealer by injecting a solution of sodium silicate into the oil intake.As autos have been flowing into yards under the CARS program, the competition for them is heating up. Auto dismantlers want the cars so that they can sell the used parts. Recyclers of scrap metal want them to crush into tiny metal fragments, which can be sold both locally and internationally.

Besides steel, other metals such as aluminum and copper can be salvaged and have high value as scrap. It is always cheaper and more efficient to recover metals from scrap than it is by mining and processing raw materials; and it is much more environmentally-friendly. Unbroken windows and windshields are removed intact and resold to car owners who need replacements and broken glass can be recycled. What is left of a vehicle after removing usable parts is put in a crusher which uses a mobile bailing press or flattener to crush the car, and then is run through a hammer mill which smashes the remains into fist-sized pieces which can then be sold as scrap. Besides auto salvage yards and scrap recyclers, there is an industry of auto scavengers and auctioneers who compete to be the middlemen in obtaining cash for scrap car by selling the cars to the highest bidder.

The CARS program has been termed a bonanza for the entire automobile industry including advertisers, dealerships and other auto businesses as well as auto junkyards and metal scrap recyclers. The federal cash for clunkers program is breathing new life into the whole economy.

The federal CARS cash for scrap car program has been a big boost for the entire automotive industry, from auto manufacturers to auto scrap yard owners like North Shore Towing & Recycling in the Chicagoland area. The CARS program is a great deal for consumers, and gives the vehicle scrapping business a shot in the arm as well.

Copyright © Yevgeni Kuritski 2012. All Rights Reserved