Scrap Car Spotlight 2.0
Cleveland Scrap Cars, an established site which provides money for a scrap car, is back with news and information. As car buyers within the salvage car market, we accept our role in insuring that all vehicles are recycled in a manner that is friendly to the environment. As we approach 2016, it’s no secret that global scrap steel prices are at the lowest point in recent memory, thus limiting the amount of money for a scrap car that sellers receive. Today we continue our Scrap Car Spotlight series, which asks questions of those who are car buyers, salvage car service providers and auto recyclers in the US. Our next interviewee is Jack Angell of LKQ Barger Auto in Garden City, ID. Garden City is a small municipality adjacent to Boise with history dating back to the 1800’s.
Q: How long have you been LKQ/Barger? What are some of the primary functions you handle in managing the business?
A: I’ve been in this business for 32 years, four since the LKQ purchase. My duties included vehicle purchases, daily books, title services, and reporting.
Q: What are some major recent changes in the auto recycling industry that you have noticed?
A: More cars are being scrapped rather than being repaired. Fewer small pieces are being sold as rebuilders make them so affordably.
Q: Are there any marketing initiative(s) that you have used lately that was very successful?
A: The best are small coupon ads and word of mouth resulting from good customer service.
Q: The “self-serve”/”U-Pull It” business model has risen in popularity lately. Does your location employ this model? Any positives or negatives that you see with it?
A: LKQ has been an established self-service site.
Q: How do you track your large inventory of used vehicles and components?
A: We use Hollander with Project X
Q: Do you recall times when the per-ton scrap price has fallen this much? How and when do you anticipate a rebound?
A: About 15 to 20 years ago the prices dropped to $8 ton, but only stayed that way for a few months. I believe ours will turn back up after a few months. There is a new Cadillac factory going in, a new GM factory being built and a Volvo America site. There should be a bigger demand for US steel, which will rise back slowly.
Q: What are the different ways that you obtain late-model (2005+) vehicles for components?
A: We pre-bid on cars and bid insurance auctions in and out of state.
Q: Are there any challenges that are unique to your business based on your location in Southern Idaho?
A: The distance from our site to customers for delivery.
Q: Does your location stock or sell the LKQ aftermarket products? If so, please tell us some of the benefits of this side of the business?
A: My location does not maintain stock, we have a local warehouse about 15 miles west & can ship from Portland overnight if needed. Some of our customers prefer new, which takes away from used item sales. On the other hand, some customers prefer OEM (used), so the aftermarket products add some value.
We certainly appreciate Mr. Angell’s time and feedback on the state of the industry and on how their business practices have allowed them to sustain the business for so many years. We encourage you to visit their website at http://www.lkqcorp.com/
Cleveland Scrap Cars are salvage car buyers that offer money for a scrap car throughout Northeast Ohio. We are an environmentally conscious team of auto scrappers and recyclers that believe firmly in recycling for greater sustainability and a healthier environment.