honoluluadvertiser.com

Sponsored by:

Comment, blog & share photos

Log in | Become a member
The Honolulu Advertiser
Posted on: Saturday, July 5, 2008

CAR PARTS
Do-it-yourself car salvage yards are expanding

By Margaret Harding
Associated Press

Hawaii news photo - The Honolulu Advertiser

This do-it-yourself salvage yard in Detroit is one of 21 Parts Galore yards in the U.S. The chain is opening new locations as scrap metal prices — and profits —soar.

JERRY S. MENDOZA | Associated Press

spacer spacer

DETROIT — It took an hour's worth of work, but Roman Knight didn't mind.

The 18-year-old needed a bumper for his '94 Buick LeSabre, and a Detroit salvage yard had the right one. So he got down to business, prying off the bumper from a junked-out car, walking it to the clerk's desk and hoisting it up to the checkout counter.

Then he went back for more.

The teenager is one of hundreds of customers who have discovered businessman Bill Wild's two Detroit salvage yards — appropriately named Parts Galore — that allow parts-seekers the chance to make their own finds rather than pulling parts for customers.

They're among a growing number of do-it-yourself salvage yards, a trend that comes as scrap metal prices soar, making the business far more profitable than it once was.

At one time, a crushed car would go for $20 to $25 a ton, said Automotive Recyclers Association president Sandy Blalock.

They're now going for more than $300 a ton, and that's after a salvage yard has sold off all the parts, Blalock said.

"It's actually become a very profitable business to be in," she said.

On a recent Saturday, a new Parts Galore yard — with 2,000 vehicles on 25 acres — was filled with the sound of clanging metal, the twisting of wrenches and a few grunts of effort as people sweated through the heat to remove rear axles, engines and radios.

De'Andre Simmons, 23, of Detroit, leaned into a '94 Lincoln Town Car to yank out an alternator for his friend, Antoine Crowder, 21, also of Detroit.

"When I came into this yard, I was like, 'Wow, this is dope. This is real cool,' " Crowder said.

The first facility opened three years ago, and Wild said that, after studying sales, he determined there was a need for another yard.

The second one features a storm weather sewage system to keep the gravel surface dry and "comfort areas" where customers can buy a drink, use a portable toilet and get out of the sun.

"Our facilities are pristine. We like to call them a 'retail outlet' versus a junkyard," Wild said.

Pull-A-Part, a self-serve yard with 21 locations in the U.S., began about 10 years ago and is actively expanding, said Steve Levetan, senior vice president of the Atlanta-based company.

"We felt that it provided a niche in the marketplace that, frankly, has been underserved or not served at all," Levetan said.

Levetan credits the chain's success to the self-serve model — it saves money on overhead and keeps prices low.

"We have customers that come every week who pull parts and then resell them," Levetan said. "One couple in Atlanta, they pull parts together every weekend, and they tell us they've put three kids through college by selling parts on eBay."

Parts Galore charges a $1 admission fee, and wheelbarrows are available to rent for $1. There's a flat-rate price for each part, meaning a door for a Cadillac costs the same as a door for an Impala.

The most popular car in the yard is a Ford Taurus, but Wild said he's put out taxis, tow trucks, ambulances and the occasional hearse.

"You'd be surprised at the amount of parts we sell off them," Wild said of the hearses.

Vehicles typically stay in the yard between 45 and 60 days before they're picked clean and sent to a shredder to eventually become remolded steel.

During that time, almost everything is sold off the car — weather stripping, headlights, tail lights, even hood emblems and ornaments.

"People restoring cars will come out and get stuff like you wouldn't believe," Wild said.

All the fluids are drained from the vehicles before they're put in the yard, an effort to be environmentally friendly. Gasoline goes to a refinery, and used antifreeze is sold for $2.99 a gallon.

Customers also are charged a $3 core deposit for some parts — an incentive to bring the old part back so Parts Galore can recycle it.

"We believe it's cutting down on the blight in the city," Wild said.

He said $8 million was invested in the new facility. His business plan appears to be working, so he said he's looking at further expansion.

Wild attributes his success to low prices — tires go for $10.85 — and the unique setup.

"There's just no place else around you can go out in the yard, find the car you want and pull the parts yourself and have an enjoyable experience and save money at the same time," he said.