Oct

Beat the Credit Crunch by changing your salvage strategy

admin

Everyone seems to be going on about the credit crunch these days, and as we look like we will soon officially in in a recession, its important to assess how this will affect the salvage and breakers businesses.

Its tough times out there, and cars are not selling for anywhere near what they were 6 months ago, likewise they are taking much longer to sell, meaning people who make a full time living out of the salvage business will be finding it even harder!

There is always the opportunity to haggle harder with the salvage yards your buying a car off, as they will also be feeling the pinch, but there is also the opportunity to take advantage of more competitive prices from bodyshops and mechanics as they will be forced to price better to stay in business.

Alternatively, one other avenue that is overlooked, especially for newer more expensive cars, is breaking for parts. Regardless of whether there is a recession of not, people still need to repair their cars when they are broken. When money is tight they are even more likely to do it themselves, with used parts! Which is excellent news if you are a breaker.

Again, I’d always consider which route before buying a car, as each will come with its own pluses and minuses, when breaking a car, where are you going it store it, and all the parts? Where are you going to list the parts for sale e.g. ebay? Likewise, are you prepared for the cash to come in dribs and drabs.
Make sure you also have the ability and tools to make use of all the cars parts, if you dont have the skills to remove all the saleable parts your loosing out on potential income. Last but not least, make sure you have some method of getting the shell or left over parts of the car to the scrappy, you don’t want to have to pay for expensive removals if you dont have to.

Just something to consider, as times get tougher I can only see the used parts business and opportunities for breakers increasing.