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Auto Parts Recyclers: Online Salvage Car Auctions Gain Competition

Due to the rise of online auctions, the world of salvaged cars has undergone significant change in recent years. Auto parts recyclers in the United States have faced increased competition as these digital platforms connect buyers and sellers in new ways. So how have online salvaged car auctions transformed the salvage car auction industry, and what can recyclers expect with increasing competition? 

Salvage car auctions typically take place at physical auctions, where buyers had to be present in person to bid on the vehicles. This limited competition to a small geographical area, making it difficult for recyclers from different parts of the country to access the same inventory. However, with the advent of online auctions, these barriers have been broken down. 

The accessibility that online salvage car auctions provide to recyclers of auto parts is one of their most important benefits although this can also be seen as a disadvantage as well. Now recyclers from all over the nation can participate in the online bidding process using these platforms without having to travel. As a result, some may argue the playing field has been leveled, giving smaller and farther-flung recyclers an equal chance to compete for salvaged vehicles. Others may argue that the smaller recyclers are pushed out by the larger recyclers as they get caught in bidding wars they cannot win. In addition, the inventory is also presented to other types of automotive related businesses broadening the competitive landscape even further. 

The inventory available to recyclers have greatly increased with online auctions. Many auto recycling companies have choices of cars from a variety of suppliers, including insurance firms, rental car companies, and even private sellers. This enormous inventory gives recyclers more options to choose from by enabling them to locate specific makes, models, and parts they require for their businesses. 

While this may sound great, there is a huge disadvantage to not being able to see the vehicle in person. Many online buyers rely on images that could be misleading, especially since a stationary vehicle in a picture online does not tell you how the vehicle runs…if it runs at all. 

Ultimately Increased accessibility and inventory have increased competition among auto parts recyclers. The demand for salvaged vehicles has increased as more recyclers participate in online auctions. As a result, bidding wars have taken place and prices have risen, making it more difficult for smaller recyclers to obtain vehicles at fair market value. 


Are you a registered business looking to sell your scrap OEM catalytic converter? Give us a call at (619) 427-8540 or discover the price for it by searching the part number on our catalytic converter price guide!



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