How to get around scrap price gouge

Yall crying about low prices, at least it isn't a penny a lb YET!! But this is one way. I have been getting into buying scrapper cars for like 300. Part them out, gut the car, and send the rest to the yard. I pay 50 for a uhaul tow dolly. About 50-75 in labor for my helper. Then the yard picks up the carcass with rollback for 75. Great thing is my truck moves twice a week. Once to pick up the car and then to follow rollback down to the yard to get paid. That is the secret. Why bust my balls and tear up my truck, when the yard can swoop in pick up and go. Then also anything happens, the reasonability and insurance is off my back.



Now I didn't take a video of this tear down. Im crippled right now between a tractor trailer accident. I rolled the truck when the trailer hit some black ice, bounced, and rolled taking the truck with it. Tore up my neck and left shoulder. Still don't know what is wrong due to insurance being scumbags. Zero medical treatment so far. Then a month later my DVT in my left leg flaired up and I can barely walk. But this vehicle took 3 days, about 12 hours max to gut everything with a cripple and a helper. Including carpet tear out, seats, everything. Nothing really left. Maybe some straggling wire under headliner and some aluminum for the rear ac/heat underneath. That's it. Best part is I havnt left my house in a week other than coffee and smokes. People come to me, hand me money, and leave. Its beautiful and simple. Then you stuff the piss out of it and send it. No fuss, muss, etc. Don't know what total weight is after gutting and stuffing, but I figure around 3500 lbs at 6c lb minus 75 tow. Will get the bill in the morning. Couldn't walk and drive down to yard today.
SO yes, YOU, and only YOU can make money. It is not about the scrap, it is about RESALE!!! I sold motor and trans for 300, plus other parts. SO think Im ahead by about 200 now and still have tons to sell.

https://www.facebook.com/video.php?v...51745070181000

I don't do cars YET! Maybe I should, your accident sound bad, hope you get back to 100% soon.

I thought this might be another "buy and hold and time the market" thread. Keep moving. Turn and burn.

I hope you get well quickly.

Yep I just see steel as gas money now. And break it down more to get my precious and take that in for the real $. Also less competitors makes it easier.

Okay not to be critical of anyones business dealings, cause my business is by no means something to brag about and after reading tons of posts by you guys i am small time lol... but i see you have $475-500 going out not including fuel. If you sold the motor and trans for $300 and received $75 for the carcass after the cost of tow.... took 3 days to tear down complete... you have to pay your self for the 12 hours of time... after its all said and done what have u really made? I understand you have other parts to sell, but if it is a common car you could be sitting on those parts along time. Also what car was it to weigh 3500lb gutted ? $50-$75 for labor seems awfull cheap for 12 hours. 6Cents a pound on cars seems good considering other posts are claiming $20-50 a ton on cars. Again not trying to be offensive just curious.

I think he is saying it's about 3500lb after he stuffs the car with shred. But still I was thinking the same thing. If you don't factor in selling anything. Because until you sell it, its not worth anything. Here's what I have came up with

300- Car purchase
50- Uhaul Dolly
50- labor
75- car pickup

That's $475 in cost. Then you sold parts for $300. That's leaves you with -$175. If the car (stuffed) weights 3500 lbs @ .06, that's $210. That leaves a profit of $35. But you still spent the time to tear it down. Maybe I'm missing something

OK i didn't want to go in financial, but here is the break down.

275 car
75 helper
35 gas to go get. Was 70 miles away one way
50 tow dolly
405 total

Now
30o motor trans sold. Could have been higher, but motor was sold as rebuildable core for a 100. Had a overheating issue. Unknown cause.

Cat 100

4x aluminum rims 4o after tire disposal. Although do have them listed for 50 a piece.

Loaded carcass 4200 lbs at 6c lb minus 75 tow fee. So 177

177+
100+
40+
300+

617

So as it stands 200 profit. Which could have been another 200 if motor was good. This is not including 60lbs wire, aluminum cores ac\heat, rad, and other various chunks of aluminum I saved.

So for simplicity sake 300 profit. Or 700 profit if motor was good and I sell wheels for 50 piece. So for 4 days work of like max 17 hours invested, helluva lot better than no work. Or working at McDonald's

Your milage will vary depending on core prices, cat worth, parts, etc. And I still have tons of parts to sell.

So yes, roughly 35% profit after cost. Side note I don't think this van was more than 2800 lbs empty. This one was fwd. I did a awd version 2 weeks prior and that was 3000 lbs across scale empty. So I stuffed the turkey pretty well. And it might have had ice in it due to winter.

Now take in account also I'm giving 14 days warranty on parts. I'm allowing people to test drive vehicle before purchasing motor, trans. Plus I was a mechanic for years. So I know what is good or bad. The motor in this case was overheating. It ran nice, lots of ballzs. But no heat and was running hot. Could have been as simple as bad thermostat or clogged radiator. Or as bad as a cracked head. I didn't want to investigate or waste time, so I sold as a rebuildable core. So its all on you. Hope this educated someone out there. And now you learned something.

O and for ****s and giggles. Another secret. Check out cup holder and glove box 2002 venture on eBay. It will shock you they sell for about 75 a piece. Or the window regulator from the doors sell about 75. Hint hint...see the profit now??? I'm not making a full list, but you got a idea now.

Good job, your working and that what your busted body needs to heal. don't over do it

Nice job Ozzy!!! I hope your injuries get mended

That's still a LOT of work for, at best, a decent hourly wage! No real "profit" there. 140 mi. round trip to get the car? How long did that take? Wear and tear on the tow vehicle? What about the value of the shred that was packed in the car to get the weight up? You should really step back and take another look at your business model.

I would love to know how many pounds are stuffed in there!

I dont even know where to start lol.For one if the car weighed 4200lbs you cant count the stuff you threw in it for a profit it as thats stuff u already had and had nothing to do with the van lol.So really the van weighed about 2500 lbs max so thats only 150 minus the 75 is only 75!
so you have
275 car
75 helper
35 gas to go get. Was 70 miles away one way
50 tow dolly
405 total

minus
300
75
80 for the cat not 100
is 50 dollar profit
so you still have aways to go to make it big lol.

Actually, prices here are $30/Ton currently. That's 1.5 cents per pound.

The yard owner told me that it'll be going down to $20/Ton soon.

So, that is a penny per pound.

$50 for the whole car hardly seems worth it to me. You have to figure in vehicle wear and tear, and equipment expenses (Tools, Torches,...)

it depends on the car, though. Trust me- parting out a 1993 Escort is almost impossible!

I suspect if steel prices stay low for a while, supply & demand will start adjusting people's ideas of what their junker vehicles are worth. Some folks can't just sit on a junker and wait for a nicer offer and if almost no one is willing to pay much for it, they'll take the offer given. I remember from the early 1980s when steel was $12-15 a ton around here and an auto salvage yard might offer a person $50 for their junker car (pick up service included). Such prices may be more recent than that but that just my personal experience. We'll see what happens...

I'm wondering if a lot of us are missing the OP's point here....

Bottom line: you can still make some money offa scrapping cars. It seems we have been criticizing the exact dollar amount he received...

It might be not as much $ as you are used to. So? We've just all been having a group hug about hitching up our pants, rolling up our sleeves and getting at it. The tough get going and all. And everyone also talks about getting innovative, too.

Scrapping cars is a prime example.

Get innovative about getting every last dime out of the carcass. Turn and burn doesn't work anymore.

Just sayin'


Jon.

I hit it hard every day like it was 200.00 a ton