Junkyard is Overpriced?
Posted by FishermanMain@reddit | askcarguys | View on Reddit | 68 comments
I went to the junkyard for the first time and found two old instrument clusters that the guy at the front desk quoted me $50 ea. I was expecting to pay maybe $15 ea because it's a junkyard.
Am I supposed to be bargaining with them on the price or is this normal?
NoStandard7259@reddit
It all depends, the local ones near me charge like 20$. Some of the more chain ones will charge 35. The huge ones like LKQ charge like 50 it’s ridiculous
Sea_Statistician_312@reddit
Pretty normal. I needed a hood for a Z3 I bought, these are rare, large, and expensive. Like $1900 new. I found one at my local yard when searching online, the guy tells me $300 on the phone which is an insane deal.
I drop everything, grab my buddies truck and head straight there. Different guy at the desk, I told him Bob said it was $300. He kinda sighed, "Bob priced it wrong but I will honor it." I bet they really wanted like $700 for it at least, but shoutout that guy honoring the price.
ZimaGotchi@reddit
You can expect to pay a little bit less than the lowest sold listing on eBay. That's how they usually price stuff. What's your other option?
FishermanMain@reddit (OP)
I was planning to flip the parts on eBay, like I’ve seen others do as a side hustle. But if the junkyard is already charging eBay prices, there’s no money in it for me.
I expect some margin because I’m driving to the yard, finding and pulling the parts, listing them on eBay, then handling packaging and shipping. Many of these parts are basically scraps to the yard (dome lights, interior bezels, etc.), so even if they sell them to me at a lower price, they’re still making good money.
It’s kind of like a supply chain from wholesale, dealer, to customer. They sell to me at a discount and I deal it to individuals.
But I get it, the world doesn't work perfectly.
Y33AH@reddit
Open up your own junkyard and sell your own parts then, inflation is a real thing that has happened.
FishermanMain@reddit (OP)
I understand the junkyard has overhead. I am willing to buy slow moving parts from them. That helps them with inflation, overhead, liquidity, inventory turnaround, everything. It is a mutual benefit.
Timewastinloser27@reddit
You have no clue how junkyard work do you?
Y33AH@reddit
They have probably been in the business for 20+ years and know more information than you and know trends so they are pricing accordingly. I mean it doesn’t hurt but as other has mentioned the only way they might work with you is if you buy say 5k of bulk stock they might cut you a deal for another business owner.
FishermanMain@reddit (OP)
I’m not claiming to know more than them. I just passed on a lot of their parts because of high pricing (aka lost sales). At some point, holding onto old inventory costs more than selling at a fair price. All the parts I refused are unsellable now too because there is no way for them to identify them once I removed them from their cars lol
NoseResponsible3874@reddit
You seem to think that just because YOU didn’t buy those parts at those prices, nobody would. Get real.
ZimaGotchi@reddit
He thinks that since he pulled them, nobody can but them now. Guys like him are why we aren't allowed to pull our own parts at any of my local junkyards anymore (for like twenty years now)
FishermanMain@reddit (OP)
I'm not saying that at all. The market decides. If the price is too high, the parts don’t move. Those parts have been sitting a long time even before I grabbed them.
ZimaGotchi@reddit
Your literally describing the entire purpose of junkyards. That's why they have literally a million parts collected into one...yard.
sumguyontheinternet1@reddit
It’s really not hard to find the part number on the back and cross reference it, then sell the already pulled part online. You’ve caused them about 30 seconds of googling in inconvenience and saved them an hour each on labor costs to pull it. My shop buys discontinued parts from the junkyard all the time. We are a mid-west chain of repair shops (not Midas, Firestone, or the BIG names like that but similar business model).
MNmostlynice@reddit
“I wanted the parts cheap to sell them for a profit so someone that really needs them in a pinch can’t buy them for the cheap price at a junkyard.”
Fuck the “flipping” hustle. I’ll die on this hill.
FishermanMain@reddit (OP)
That’s a naive take. Flipping is just brokering, which is part of every supply chain. Nearly everything you buy has passed through a middleman who took a margin. It’s not some shady hustle, it’s how markets function.
Humble_Handler93@reddit
This is also a naive take, brokering is a part of the modern supply chain but they make a profit by purchasing in bulk or by facilitating the acquisition of products that would not otherwise be available to people. You’re neither providing economies of scale (purchasing in bulk) nor are you facilitating the acquisition of products not otherwise available to general market. Are you providing a service? Sure your time a labor are being utilized to provide a product but you’re essentially an artisanal supplier which means your margins are even more razor thin.
WingApprehensive7551@reddit
The junkyards are already flipping the parts. They're just better atnutnthan you are.
MNmostlynice@reddit
Flipping is fucking up the secondhand market on a lot of shit. Secondhand is supposed to be a cheap, economical way to buy things. Now we have flippers that buy shit secondhand the jack the price up. You keep doing this and it eliminates the secondhand economic way to buy used things.
For example, I tried to buy a Mark Martin shirt at a thrift store last weekend and it was 60 fucking dollars. For a worn out 90s NASCAR shirt.
Fuck flippers.
Y33AH@reddit
Yup I’ve blacklisted thrift shops because of this lmao 🤣
MNmostlynice@reddit
Like god damn, I love nascar and I’d love to rep some old stuff, but I’m not paying those prices. Some broccoli hair cuck will come buy it because it’s ViNTaGe though
Hersbird@reddit
So now some average Joe needing to fix his daily has to pay more because 3 middle men are all making money on his need. Same thing with flipping whole cars, every good deal gets mopped up in 30 mins by someone who is just going to relist it for twice as much.
-Raskyl@reddit
You do realize that many junkyards sell on ebay, right?
FishermanMain@reddit (OP)
These smaller parts clearly aren't selling on eBay as they're from cars that have been sitting long-term, as shown by the dates. It takes a lot of extra labor to remove them, so it’s not really feasible for them unless someone like me comes along ready to buy.
-Raskyl@reddit
Ok, but you realize they know what it sells for on ebay, right? And why would not charge the going price for that used part?
NoseResponsible3874@reddit
Because OP wants to make a profit too, duh
-Raskyl@reddit
Then they should do something to make the part worth more.
NoseResponsible3874@reddit
Nooooo they just want to pay less than the part is worth so they can sell it for more than it's worth!
FishermanMain@reddit (OP)
Why would someone go through the hassle of pulling it from a junkyard when they can just order it on eBay and have it delivered to their door for the same price?
-Raskyl@reddit
You clearly dont get it
cyprinidont@reddit
They are also selling on eBay
FishermanMain@reddit (OP)
These smaller parts clearly aren't selling on eBay as they're from cars that have been sitting long-term, as shown by the dates written on the cars. It takes a ton of extra labor to remove them, list them, inventory them, package them, label them, and ship them so it’s not really feasible for them unless someone like me comes along ready to buy.
Proper_Possible6293@reddit
If you want wholesale pricing you need to be buying wholesale quantity. You are trying to buy retail quantity and flip to retail. Most junkyards these days are massive vertically integrated companies that I can assure you aren't lacking in supply chain knowledge.
BrandonStLouis@reddit
There won’t be any money it it for you unless you know what you’re buying and or can buy in bulk. I bet you could get clusters down to $25 each if you are prepared to buy $1,000 worth at one time. Let them know you’re in the business and would like to start a wholesale account.
FishermanMain@reddit (OP)
I am willing to spend $1,000 at a time if they'll sell me the parts at the right price. Maybe I just need to talk to them more in depth.
ChrisGear101@reddit
This. If you want parts at a discount to flip, you'll need to walk in with a Pocket full of cash, haggle on each item or lot, and buy a truckload. Otherwise, $20 means nothing to them.
FishermanMain@reddit (OP)
That totally makes sense and I see what you're saying. I'll try talking to them more and seeing if we can work out a deal.
themontajew@reddit
Things don’t really just cost what they hope it does. They charge what some one else is willing to pay if you aren’t
FishermanMain@reddit (OP)
I get what you're saying but the point you're missing is that there are numerous parts that they don't sell at those prices because the junkyard doesn’t have the reach, time, or setup to move them. Your average person has never visited a junkyard. The parts end up sitting there unsold. It's basic supply chain knowledge. They would make more revenue off me purchasing them even at a salvage price instead of sitting on unsold inventory.
Lazy_Hall_8798@reddit
If they don't sell the part locally, they put it on eBay or FBM. Junkyards are no longer isolated locations. Even 30 years ago, they networked to fix parts prices.
NoseResponsible3874@reddit
If that were true, they would know it, I promise. Otherwise, they would be out of business entirely.
FishermanMain@reddit (OP)
Staying in business doesn’t mean they’re maximizing profit
rangeDSP@reddit
Economics 101, supply and demand. A business that don't make money wouldn't exist.
The fact that you didn't end up with a instrument cluster for $15 today means it's worth more than that. They can ask for $50 because they know that's how much they can sell it for.
It's a free-ish market, you are more than welcome to find a place that sells for less. If you are not able to, guess it's time for you to adjust your price expectations.
NoseResponsible3874@reddit
If they’re happy to tell you to fuck off because you’re lowballing them, I’m happy to believe they know what they’re doing.
FishermanMain@reddit (OP)
Wow wow buddy, chill out. You sound like you work at the junkyard.
NoseResponsible3874@reddit
You sound like you have no idea what it’s like to work at the junkyard.
S7alker@reddit
I stopped going to the yards when they started charging barely less than the dealers for parts near me. Sometimes they reduce their own demand
HuckleberryHappy6524@reddit
This. They seem to have forgotten they are JUNK yards.
WingApprehensive7551@reddit
They have more reach than you think. Lots of them have sites now where you can do a basic search for what cars they have, even some major parts. Or lots of people call and ask before they go. They don't need the average person visiting, they need people who need parts. And people who need parts will come looking for them.
Hersbird@reddit
There is way more cost on the epa regulations side, and the employees having to pull stuff side, and in a u pull yard the insurance side, compared to 20 years ago.
swanspank@reddit
LKQ a salvage company that has yards where you pull your own parts has prices online for typical items.
They also typically have a local website and shows their current inventory.
Personally I prefer to pull my own parts and enjoy spending a couple hours on a Saturday getting pieces parts.
TexMoto666@reddit
LkQ is my go to yard. Pulled some parts for my E46 last week and saved a ton of money on OEM parts.
swanspank@reddit
My 01 e38 : cup holders (front and rear) and hood poppers. Though I did get a DME for $25 and cloned my water damaged one, DSC/ABS controller $25 and multiple wheel speed sensors for like $1. VANOS solenoid for $2, MAF and throttle body $10. Did get a KOMBI for $15 but never used it. Figured one day I will search around and figure out how to match up the mileage.
Their inventory search lets you keep up with new arrivals. They are pretty cool around here and aren’t total dicks like most salvage yards.
MisterRay24@reddit
Good places have standard prices listed for parts. You can tell how much you will pay before you go get it. At least at my pick and pulls
do2g@reddit
Well, there's no reason you can't say "would you take $30?" All that will happen is either a yes, a no or maybe a counteroffer.
imnoherox@reddit
Let me guess… harrys?
Silver_728@reddit
Just because its a junkyard doesn't mean everything they sell goes cheap!
I've gotten some great deals at junkyards, andI'vee gotten some meh ones.
FishermanMain@reddit (OP)
Thanks for this insight. I'll check out a few other junkyards and see what pricing they have.
CautiousMarsupial473@reddit
That pocket full of fuses and relays is baked into that cost as well
woodventures@reddit
Some are. Some aren't. One yard used to be cheap. Now it's $750 for a motor. Up from like $100. I know lots of owners like these for years they were happy making good money with ups and downs and whatever. In more recent years, there's way more business(customers), more thieves, regulations and taxes. Not just junkyards but auto stores, hardware etc. they do not give a shit anymore. They have enough money but not multi millionaires. They all started raising prices since Trump came around thinking they don't need anyone else. They could have retired by now but they kind of suck at what they are doing and would rather chase people off than sell parts. Its why I don't even bother anymore unless I'm desperate. They know a lot of people are desperate or willing. The prices pretty much have no rhyme or reason except scrap value. Some old clusters actually can be sold for decent scrap metal nowadays bc gold and other stuff is so damn high.
mpython1701@reddit
Welcome to corporate owned salvage yards and instant access to comparison prices.
PowerfulFunny5@reddit
Yeah, I just found out my local junkyard was bought out and no longer has u-pull. And I’m not even sure if parts are quickly available as most are listed that they still have to remove them.
Kdoesntcare@reddit
Have you seen that part being sold for $15 anywhere? $50 is expensive for a cluster for a 90s VW but cheap for a cluster for a B5 Audi.
NoRegret1893@reddit
Junkyards are more clever than you might think. They often price according to demand, so if this cluster is from a popular car, they might charge more.
AlaskaGreenTDI@reddit
At my local place that would be laughable. But some places are priced far higher. You should try out a few yards and see what each quotes you. Since you want to be selling multiple items, it’s easily feasible to drive to a cheaper one farther away.
ChrisGear101@reddit
So, you want wholesale prices so you can then sell for retail. They, however, are selling at retail to pay their overhead on the yard. So, your business plan had hit a snag.
FishermanMain@reddit (OP)
I get that they need to cover overhead, but if the parts aren’t actually selling at those retail prices, then they’re just sitting there.
I’m not trying to undercut them—I’m offering to buy parts they likely won’t sell anyway. If I can get them at a fair price, I do the work to sell them and they still make money on inventory that would’ve gone unsold. It’s a win-win if priced right. The snag is the junkyard's inability to see the mutual benefit.
AbruptMango@reddit
For most things, they look at what a new aftermarket part costs and then charge less than that. There probably isn't an aftermarket option for a cluster, but I'll bet one from the dealer is at least several hundred. $50 seems like a bargain.