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How Do Junkyards Work?

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Maybe you are a collector or want to cut costs on something that you need by buying used. In either case, you’ll want to consider visiting a junkyard. After reading this article, you’ll understand how the process works and that it’s basic and straightforward.

There are two ways to approach this topic. The first is to understand how junkyards operate as a business, and the second is to understand how you can buy from a junkyard. We’ll discuss the former first, which will be particularly helpful if you want to own a junkyard. 

How Do Junkyards Acquire Cars?

Junkyards usually buy junk cars from their owners for cheap prices and then sell them to other customers to make a profit. They will either sell the cars as a complete unit or they’ll dismantle them and sell usable parts to other customers. If a car lacks a valid title, the junkyard will be forced to sell it as parts.

After making a deal, if the car cannot be driven, the junkyard may offer to tow it at a price that is charged to the customer. Junkyards can also buy junk cars at public auctions. Lastly, it is common for them to also refurbish cars before reselling them.

How Do Junkyards Sort Cars?

Once a junkyard has acquired cars, the next step is to sort them. The cars will vary based on the state in which they were acquired, and some will need repairs while others will be in good shape. Some cars may be unsafe to drive on the road, and as such will have to be broken down into parts and sold as scrap. 

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The next step is to arrange the cars in a way that makes it easy for customers to find what they are looking for. This may involve stacking the cars on racks to save space, for example. Valuable parts can be removed and stored in a warehouse to protect them from rust and decay.

Lastly, a junkyard will do an inventory of all the cars and car parts that can be sold to customers. 

How Do Junkyards Make Money?

Like most other businesses, junkyards profit by selling for a higher price than buying. They also make money by breaking junk cars down and finding buyers for all the different parts, including the scrap. Additionally, some junkyards repair cars and provide towing and repairing services.

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How Do You Buy from a Junkyard?

Buying a car from a junkyard is quite different from buying a car from a dealership. In most junkyards, customers search for cars and car parts on their own. This means that the buyer needs to understand what they’re looking for and know how to get it.

It is not unusual to find two or more customers hammering and wrenching a vehicle apart in search of different parts. As such, to make the most out of a junkyard visit you will need to have the right tools with you. They will help you take out parts that you need efficiently. 

Before searching for parts at a junkyard, make sure you know what’s compatible with your car. You can do a Google search to find this information.

Remember to never make assumptions when finding cars or car parts at a junkyard. Some cars may look run down but could actually have some very valuable parts. At the same time, a car that looks like it’s in great condition could just as well not be.

Lastly, find out if the junkyard with which you’re considering doing business offers a short-term warranty. This will allow you to go home with a junk car or part and test it before making a final decision. 

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