Salvage Wire

Salvage Wire
Helping Automotive recyclers become leaders in their industry

Tuesday 22 December 2009


As we near the end of 2009 what can we look forward to in 2010?

The end of the scrappage scheme will allow many breakers to take a break from collections and focus on dismantling and scrapping the vehicles they have received.
Looking longer term, I do not think we will fully understand all the implications of scrappage for many months - the impact on scrap prices still has to work its way through - especially as the scrap market is global and the glut of scrappage cars will continue for a while. Parts sales could be weak for a while - too much stock will depress prices, and then as the parts supply is used up prices will strengthen, but in the current economical climate how many customers will want to pay the higher prices?
Residual Values of vehicles could maintain current strength for a while, but these will start to reduce once Scrappage ceases as demand reduces and stock levels of new vehicles increase, causing discounting and distress selling by manufacturers and importers.
VAT change will have an impact on parts and VAT qualifying vehicles, smart businesses have been focusing on VAT qualifying units in the recent weeks and promoting them to ensure that as many as possible are sold. Another 2.5% doesn't sound too much, but on a £10,000 vehicle that is another £250 on the invoice.

Overall though I believe that the Motor Salvage Industry in the UK is a very resiliant sector, that is always looking where they can make a profit, and has the flexibility to survive and come through the year as a stonger, leaner and more efficient operation. All that is needed now is for the Environment Agency to focus on getting illegal operators compliant or taking them out of business - now that would be a real bonus!

Tuesday 15 December 2009

Salvage Parts Stock Control

I know I have been on about this before, but I still believe that a decent stock control system is going to be essential for any supplier of 'green' parts in the future.
Visited an excellent site yesterday, A1 BM Spares in Stevenage ( who have had software from Pinnacle for about 1 month and are getting to grips with all the functionality. You can see from their web site that they are using it very well already, uploading images and detail about the parts available. Not bad for a first time.
As always the effectiveness of any software is only as good as the information that goes into it, and this needs discipline, entering all the donor vehicle details, parts available, pricing, images ec, and recording all the sales, recording all "none sales", i.e. enquiries that could not be satisfied either because parts were not available or too expensive. Only when a few months (or years) worth of this data has been collected will the software really come into its' own as a full stock management system, then the users wil be able to see parts turnover, profit, parts in stock etc.
Pinnacle is expensive, and there are alternatives, so my recommendation is to view a few of the options, talk to some of the users and make your own mind up, but get yourselves a decent system and give the bosses head a break!

Saturday 12 December 2009

Top Gear and the Twingo

Just caught up on the last Top gear programme, what was Jeremy doing with that Renault Twingo, what a waste! I hope that the Renault PR department are happy with their investment, because in my eyes it did not do them any favours, the wanton destruction of property is bad enough at best, but to a few pepole, the fact that a 'professional' journalist abused a car in that way only encourages them to do the same.
I hope that Renault followed the Association of British Insurers Code of Practice and have scrapped the car.
As for the loss of Ross Kemp, no worries!