What Really Happens To Your Car When You Sell It To A Car Wreckers Melbourne
Business Insight: What really happens to your car when you sell it to a car wrecker in Melbourne
You probably would be thinking what really happens to a car when you sell it to a car wrecker on a price which no private buyer is willing to make. Especially when your car is in such condition or in that part of its life where it cannot be updated and sold again. Car wrecking business in Australia especially in Melbourne is really a very competitive market, profit margins are not that high when you consider how they deal with each car. One clear indicator of market competitiveness is the quote that you get for your car, you will see that all wreckers will give you a similar quote with a deviation of only 10 percent.
Most of the people think that usable parts of the car will be extracted and will be sold separately. This is true but to only some extent, as not all parts can be extracted and neither there are customers for it. Even if wreckers make an inventory of all parts of a single car it would take them more then you a year to sell it off one by one and not all of them will be sold.
Being working in the same industry we can tell by our own experience we get very few parts request and all are for common brands like Ford, Holden, Toyota and Mazda etc. So it is not viable to extract and store parts for each car that is purchased.
And then there are foreign brands of cars also like European Peugeot. Presently in Australia it has 13 models which include the popular 207, 3008, 308, 508, 4007 & RCZ. Add variants of years so we are talking about a very huge slow moving inventory. Although only Ford, Holden and Iveco are manufacturing cars and trucks in Australia and those are moving out in a year or so as well.
So what they really do is
Place ads when they are wrecking a car
You must have seen NOW WRECKING ads on Gumtree and other classified site. Usually it is for late model wrecked cars. The purpose is to inform all relevant buyers that they can get parts for this make and model from here. Usually this Now Wrecking ads remain active for couple of weeks and then the car is sent for metal recycling.
Straight to Metal Recycling
For all cars which car wreckers cant sell by parts are straight away sent for metal recycling. All the beautiful cars are smashed into square metal cube and sent to companies like One Steel, Impact steel and others to hit the furnace. Metal prices right now are not that pretty which makes running this business more tough.
This is one of the most sought after procedure by all car wreckers. Car wreckers utilize their own network of other wreckers in markets like UAE, Africa and other developing economies. Where used car prices are competitively very high. But even for those countries complete cars and trucks cannot be sent because of export and import laws of concerning countries. This would also add up huge import duties as well making this non profitable. So car wreckers extract main parts like engine, electrical, transmission and suspensions of required models only. Fill up the container and send oversees.
But in either case huge capital is required to run a car wrecking business and massive cash flow is required to keep the juice flowing for the wreckers.
Well now you know what really happens inside a car wrecking business. So next time you had an old, scrap car to sell, do consider the challenges of car wreckers as well. And don’t forget you are also helping the environment by contributing into recycling and you are also playing a part in moving Australian economy.
Total Car Collections
Total Car Collections is Melbourne’s highest paying car buyers. TCC have a huge car wrecking yard in Melbourne and buys ten’s of cars each day for wrecking purposes.
Call TCC to get instant cash for your old car sitting idle at home. TCC also provide absolutely free car removal service throughout Melbourne.