Important Facts about Scrap Yards you need to know

Do you know enough about a scrap yard? Have you ever wondered how much business does it make? Well, there are several misconceptions about scrap yard that needs to see the light of the day. Unlike the common perception that makes us believe that it is a dumpster amassing discarded automobiles and metal parts. It is actually an auto recycling center to collect scrap metal from various sources to get it reusable by recycling it. However, you may be stumped to find out that these scrap yards churn millions of money each year. Yes, you heard it right; it is a lucrative business. They resell the metal scraps or automobile parts to make a fortune.

The Difference between Automotive Salvage Yard and a Metal Scrap Yard:

Automotive Salvage Yard:  They bring old cars that have no chances of repair or completely dismantled in the junkyard to sell its parts. The yard takes the opportunity to sell individual parts at a higher rate. They can also have an open sale of usable parts of the car, to the people at their center. The car in the meantime is crushed and the scrap metal is sold to the refinery. Everything gets recycled and the entire process is environmentally friendly. It not only reduces pollution but reduces the cost of making new parts. They have comparatively more purchasing power than a metal scrap yard.

Metal Scrap Yard: Just like the former, it is an eco-friendly option and the metals get recycled at the end. The metals scraps are assembled from various places, including construction sites and industrial waste. Unlike, savage yard it also collects scraps that are of different material and not metal alone. Wires, cans, appliances, car parts, etc are processed in large refineries. This yard depends on the metals they purchase to make money. They sell small quantities at a competitive price.

Things that you should know well:

1. A Magnet is needed to value your Scrap: A magnet is a decisive tool that will separate ferrous metal from non-ferrous ones. Metals like lead, zinc, aluminum (and aluminum alloys), copper, gold, and brass carry less of a magnetic charge, and your magnet will not stick as easily to them. These types of metal hold more weight than others. These metals are bought or sold at a higher price. You can use a small magnet to check the quality of the metal; if it sticks to the magnet, keep it away.

2. The Price of the Scrap fluctuates:  The price varies each day; it is not constant. Just like keeping a track of the highs and lows of the stock market; you also need to pay attention to the daily price of the scraps. The yard will only buy the scraps at the current market price. They usually buy at a lesser price and sell the huge bulk of scraps to the refiners at a huge cost.

3. A Good Scrap Yard pays well: There can be several metal yards in the market for you to choose from. However, all of them may not be genuine. They can trick you by paying an insignificant amount for your metal. A good yard will never deprive you. So do proper research and ask for references before opting for one to make money. It is always important to go for a reliable yard dealer.

4. Bargain before settling on a price:  If you are an old supplier with a good record, you can ask them to give a price hike. You can also talk about the competitive price or the other yards ready to pay before the final deal. Try to maintain a good rapport with them to get the best price. Negotiation is an art that can give you a better price for your supply.

We can conclude; a good understanding of the entire process can help you assess the right value of the scraps in the market. Frequent visits to the scrap yard can help you learn about the materials used for recycling and get you paid well.