Cleveland Scrap Car is back with our next Scrap Car Spotlight. As a reminder, we pay cash for a damaged car in any (and all) conditions. Our scrap vehicle buyer is ready and willing to explain the simple process of how to scrap my car. Are you attempting to determine–what is a junk car worth? Our next interviewee comes to us from British Columbia. Neil James oversees Empire Abbotsford Recycled Auto & Truck and gave us the following insight:
What are some of the primary functions you handle in managing Empire?
I manage the final decisions on renovations, acquisitions and the general company direction.
What are some changes in the auto parts industry recently that you have noticed?
More vehicles and parts are being exported.
The “self-serve”/”U-Pull It” business model has risen in popularity lately. I see that you offer both self and full service, what are the main advantages or drawbacks with it?
It enables us to maintain a significant wholesale trade as well as being able to offer our retail customers the service of pulling the parts for them. It requires a larger staff than a self-serve only operation.
How does Empire Abbotsford track its inventory of used auto components?
We use the Car-part system and inventory for complete vehicles, engines, transmissions and some later model body components.
Do you recall times when the per-ton scrap price has fallen this much? How and when do you anticipate a rebound?
I remember when prices were as low as $20/ton. Our last crush was $85/ton, which is the 2nd month in a row it has increased. I do not see a significant increase happening for this year.
With low scrap prices, what are you typically paying for older scrap vehicles in BC currently?
We have a contract with the local salvage division of the Insurance Corporation of British Columbia that includes no-bids, water and fire damage, and 2000 and older vehicles. We just won the contract for the next 12 months at $172. It generates about 350 vehicles a month. We buy very few additional, mostly from towing companies and off the street.
What are the different ways that you obtain late-model (2005+) vehicles for part-out?
We rely solely on our contract with ICBC, which produces late model vehicles each month.
It looks like the business hours are 7 days a week. Does this result in staffing issues such as frequent overtime, needing additional part-time staff etc…?
No, we have sufficient staff to manage a 7 day week.
You were a recipient of two Environmental Achievement Awards and a Green Leader Award. What are some of the best practices that have led to these achievements?
We developed an ‘Industry Code of Practice’ which led to a provincial regulation and the basis for a national standard adopted by the Canadian Automotive Recyclers Association.
What advice would give to young people that may consider entering this industry?
I believe you need a significant amount of land to do well in this industry, which for the Vancouver area is very expensive. It is also necessary to buy an existing auto recycler here, as there is no additional land available that has the special zoning required for auto recycling. But the industry is profitable for those that run a good business, and counter staff make a quite decent income.
We appreciate Mr. James’ taking the time for feedback on the auto recycling business. Please take a look at their website at http://www.empireabbotsford.com/
We pay cash for a damaged car or wrecked vehicle 6 days a week. Are you attempting to determine how to scrap my car quickly? By contacting our cash for junk car buyer you can find out what is a junk car worth now. We are available for a junk car quote when you call us at (216) 282-JUNK.