Scrap Car Spotlight 1.7
Cleveland Scrap Cars is a where to scrap my car service provider that buys cars throughout Linndale Village, Newburgh Heights and Collinwood. The old car scrap market has various aspects and we like to report on how these successful businesses are operating in the current market. This is our 7th installment in our Scrap Car Spotlight series which interviews a company who junks cars and handles old car scrap. Our interviewee is Mr. Robert Carbone of Salisbury Auto Salvage, which is located in the northeastern corner of Massachusetts.
Q: What are some of the primary functions you handle in managing Salisbury?
I am the CFO and compliance person. My primary responsibilities involve managing finances, taxes, and operating policies. My business partner handles day to day operations and employee supervision.
Q: Your website indicated that you may (or may be preparing) to sell used vehicles. Is this something you currently do? If so, how is it going?
We sell cars on a regular basis and have trouble keeping them in inventory. Often times, the vehicles sell so quickly in front of our business that they never make it on the website.
Q: What are some of the changes in the auto recycling industry recently that you have noticed?
Metal prices being at an all time low is the most pronounced. More competition amongst catalytic converter buyers; Certain import vehicles demanding a premium at auctions; Car donation and tower sites driving up competition and increasing the costs of end of life vehicles.
Q: Is there any marketing initiative(s) that you have used lately that was very successful?
No one channel is best, customers need to be reached using a comprehensive strategy.
Q: The “self-serve”/”U-Pull It” business model has risen in popularity lately. Have you considered doing this? Any positives or negatives you see with it?
That is a great model for yards with ample acreage and minimal machine traffic. It is not the best fit for our operation.
Q: How does Salisbury track its large inventory of used vehicles and components?
Q: Do you recall times when the per-ton scrap price has fallen this much? How and when do you anticipate a rebound?
2008/2009 saw steep declines but the market rebounded quickly because investors saw security in commodities. Since then infrastructure in China and other countries has reduced the demand for US scrap, couple that with a strengthening economy and dollar value here and we feel any improvement in price will be slow coming and small. The hype of China and India’s explosive growth has diminished and I feel that scrap prices have realized a new normal. Scrap yards, peddlers and processors need to realize this and adjust.
Q: Have you in the past or currently handled processing vehicles for donation? Is so, any positives or negatives you experience?
We do currently take donation cars and have in the past. With values being so low right now, the tax deduction for a junk car is more attractive to tax paying customers. When prices are up we find that we can better compete with these companies and tend to do less with donation cars.
We would like to thank Mr. Carbone for his excellent feedback on the status of the old car scrap and recycling market. We encourage visitors to learn more about his company at http://www.salisburysalvage.com/
Are you wondering where to scrap a car in Beachwood, Bedford or Bentleyville Village? Are you seeking a place who junks cars in Highland Heights, Moreland Hills or Maple Heights? We buy junk cars 6 days a week in South Euclid, Cleveland Heights and Wickliffe, Free scrap car removal is included when we pay cash for cars in Richmond Heights, Solon and Walton Hills.