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Posts Tagged ‘Vehicle’

Federal Help for the Vehicle Scrapping Industry

Monday, November 1st, 2010

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.

What is the Average Lifespan of a Vehicle?

Thursday, October 21st, 2010

Whether you are thinking about buying a car and trying to decide if the cost of a new car is worthwhile or are wondering how much money you should put into repairing your older vehicle, learning the average lifespan of a vehicle can help you with your decision. Of course, averages are not always accurate, and you may find that your car lives much longer or much shorter than the average, but an average can help you make an educated choice.

The Official Average

According to the U.S. Department of Transportation, vehicles tend to last just over 13 years. Mileage also plays a role in how long a car, truck, or van will last, and the average final mileage for a vehicle is 145,000 miles. Half of all of the vehicles on the road today are 8 years old or older, with a third of them being at least 10 years old.

Thoughts for Buying Cars

If you are in the market for another vehicle, the decision about buying new or used is sometimes difficult. Of course, your budget may dictate that you shop for a used car, and used cars depreciate much less quickly than new ones, but you will probably get a longer lifespan out of a new vehicle. New vehicles come with warranties, which make maintenance and repair early in the vehicle’s life convenient. Also, you will not be buying someone else’s “problem” when you buy a new car. If there is a mechanical problem or recall on the car, it will probably be covered in the warranty.

Buying a used car does mean you can end up buying someone else’s problem. On the other hand, if the used car is less than 8 years old, you have a pretty good indication that it will last a while, based on national averages. You will also be able to afford more “extras” in a used car than in a new car for the same amount of money, provided you have enough for a new car to begin with.

Dealing with an Existing Vehicle

If you have an older car that is in need of some serious repair, such as a transmission job or a complete engine overhaul, understanding the lifespan of a vehicle will help you decide whether or not to put the money into the vehicle that is necessary for the repair. If the vehicle is almost 13 years old or has close to 145,000 miles, it is probably nearing its end. If you put a few thousand of dollars into a repair, and the vehicle only lasts a few more months or even another year, you will be in bad shape.

Instead, consider junking the car. The working parts, body, and even tires in some cases, can be salvaged and sold by the junkyard, and you can get some of that money upfront. You can use that money and the money you would have spent on repairs for a down payment on a more reliable used vehicle or even a new vehicle. Before you put money into the repairs, call the junkyard to see how much you can get, and consider using that money to purchase a better vehicle.

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