Auto Scrap News 1.6
Cash 4 Cars Cleveland is back with a new interview. Are you trying to determine who is the highest paying for junk cars or how to sell a junk car? We are a site who buys crashed cars in any condition. We may not always be the highest paying for junk cars; however, we are typically able to offer same-day junk vehicle removal services 6 days a week.
Our interview today is with Ed Mason, whose company is Bauer’s Auto Wrecking based in Fresno, CA.
What are some of the primary functions you handle in managing Bauer’s AW?
I’m a “hands on” owner-operator. I do everything from sweeping the parking lot and cleaning the bathroom, to salvage purchasing, DMV clearing, accounts receivable, payroll, inventory, and PR.
What are some of the changes in the auto recycling industry recently that you have noticed?
The most noticeable, is I work harder than I have ever worked for a lot less money. In the last 5 years or so, besides business in general being down, I spend more my time on no pay issues, like complying with more government regulations. Lots of this involves spending money also, that has no return other than just being able to keep the doors open. The one other thing is the way insurance companies want items acquired by body shops though third parties like auto trader.
Is there any marketing initiative(s) that you have used lately that was very successful?
Not really. The only thing we have spent more time with, is on internet sales, and/or the niche body shops. Meaning those shops that are in out of the way or remote areas that the big guys like LKQ does not like to deliver to.
The trend of the “U-Pull-It” and “self-service” business model has become popular in the industry. Have you considered it? What do you see as the drawbacks?
No. That market is very well saturated in this area already. I should of done it 15-20 years ago, and then sold out to one of the big guys. The drawback currently would be getting the volume of inventory to do a good job at it, without having to over-pay for the salvage or travel a lot of miles.
The scrap prices have continued to fall in the US. What do you typically pay for junk vehicles these days in your area of CA?
In our area, the low value salvage is still bringing $150-300, (full size trucks being at the top end) from the public or tow company sources. The 5-10 year old good stuff can be $1500-2500 plus fees, and the 0-5 year old stuff at 20-40% of ACV at auctions plus fees. Independent adjusters and tow companies have always been the best value source for newer vehicles also.
Obviously, the demand for late-model (2005+) vehicles is always strong. What ways do you obtain late model vehicles for inventory?
I do not care to use auctions. Copart or IAA are just too expense, and takes any or all profit away from the deal. Like in the previous question, independent adjusters or tow companies are your best source. To be honest, I would rather broker the part than over-pay for a piece of salvage.
Your website indicates that you provide towing service for some local authorities. How have these agreements worked out? Are they contracted on a yearly or multi-yearly basis?
In the last 10 years or so, these contracts have been very profitable, and without them, I do not know if I would still would be in the wrecking yard business. They are what I call, a proprietary type of tow, and most are impounded vehicles that accumulate storage too. What I mean by proprietary tow, is the tow fee and storage are set by the contracts. So there is no negotiating of the tow fee, and if someone wants to, you have them contact the appropriate law enforcement agency. The tows fees are probably 7-10 times what a insurance road service agreement would pay, and your getting storage fees too. The CHP and Sheriff are yearly contracts that anyone can get onto, where as, the City of Fresno has a closed list that has not had a new company put on it for over 15 years. Draw back, it’s a 24/7 commitment
How does Bauer’s Auto Wrecking manage its large inventory?
We use car-part.com checkmate
We appreciate the insight and feedback provided from Mr. Mason and certainly wish Bauer’s have continued success! We encourage you to visit Bauer’s website at http://www.bauersautowrecking.com/
Often those who are the highest paying for junk cars have the worst service and availability. Call our scrap car buyer to find out how to sell a junk car for cash. Those who buys crashed cars and damaged vehicles can often be inconsistent and unable to provide you fast quotes over he phone.
