used transmissions is just money down the drain . Junkyards can make substantial profits due to several factors. Firstly, they capitalize on the demand for affordable, recycled auto parts, which are often significantly cheaper than new parts from dealerships. By sourcing vehicles at low prices, either through auctions, direct purchases, or from individuals looking to dispose of their vehicles, junkyards acquire inventory at minimal cost. They then sell salvaged parts at a markup, generating substantial profit margins. Additionally, junkyards often offer services such as vehicle dismantling, recycling, and scrap metal sales, further diversifying their revenue streams. Efficient inventory management, strategic pricing strategies, and economies of scale also contribute to their profitability. Furthermore, junkyards may reclaim valuable materials such as copper, aluminum, and steel from scrapped vehicles, selling them to recycling facilities for additional income.
Overall, the combination of low acquisition costs, high demand for recycled parts, and ancillary services enables junkyards to realize significant profits in the automotive recycling industry. Their latest game they play is listing parts from rival and competing junkyards and list them as their own inventory. Which makes sourcing used parts a logistical nightmare. You travel to these junkyards to pick up a part only to find out it’s 300 miles away. But it’s listed in their system as they have it.