Excerpt: As vehicle technology and accidents over time continue to decrease with better safety and accident avoidance, Morris said the ability to find inventory will continue to be an issue in the used industry. “With large consolidators trying to contractually gobble up wrecked vehicles, and with the evolution of online auctions, the competition at auctions is larger than it has ever been,” Morris said. “This continues to drive the wrecked car price higher at the salvage yard level.”
The key to success will be in the technology advancements and recyclers embracing that technology. Aftermarket technology has been improving at record speeds, allowing fully computerized and digital reproduction at a fraction of the cost 20 years ago, and this technology will not slow down.
“Salvage yards need to answer the question for their customers: Who is paying for any extra handling of a used part? Is that problem answered with customers? If the problem has been voiced multiple times by the industry, then yards need to figure out how to answer the call,” Morris said. “Those in the industry who adapt and develop new technology to make the sale and profit on used parts equal to the new counterpart will ultimately win.”
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