Used Motor Vehicle Parts Wholesalers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 1,400 used motor vehicle parts wholesalers in the US purchase used and damaged vehicles, dismantle them, and resell the related parts. Major revenue categories include used automotive parts, accessories, and equipment; and new and rebuilt automotive parts and supplies. Firms may also offer generic auto parts and supplies, refurbished parts, or warranties. Some companies offer related services, such as towing or repair.
Uneven Supply
Supply of salvaged vehicles varies over time and firms face increasing competition for vehicles from overseas buyers.
Dependence On Auto Industry And Driving Trends
The used motor vehicle parts industry is dependent on vehicle accidents and mechanical failures to both drive demand for replacement parts and provide a source of supply for recycled and refurbished parts.
Industry size & Structure
The average used motor vehicle parts wholesaler operates out of a single location, employs 15 workers, and generates $3-4 million annually.
- The used motor vehicle part wholesale industry consists of 1,400 firms that employ about 20,600 workers and generate about $5.4 billion annually.
- The industry is somewhat fragmented; the top 50 companies account for 64% of industry revenue.
- Large companies with auto salvage operations include LKQ and Schnitzer Steel (doing business as Radius Recycling).
- While some large companies have operations in foreign countries, Internet trading allows firms of all sizes to buy and sell used motor vehicles for parts from almost any location.
Industry Forecast
Used Motor Vehicle Parts Wholesalers Industry Growth
Recent Developments
Mar 21, 2025 - Advanced Auto Parts Restructures
- Struggling retailer Advanced Auto Parts is aggressively moving on a corporate restructuring in early 2025 to turn around years of floundering sales and ranking fourth among its competitors. Its closing of 700 corporate-owned and independent stores represents 10% of corporate locations and 20% of indies. It is also closing four distribution centers and simplifying its supply chain from big distribution hubs to smaller regional hubs in order to get the vast amount of parts the company must carry to customers as quickly as possible. With recession worries looming, auto parts retailers typically benefit from consumers putting off new car purchases in favor of repairing a current vehicle. But the ping-ponging tariff war between the US and its North American neighbors is a wild card that could increase costs and blunt any gain to be had in the auto parts industry.
- With the Trump administration threatening 25% tariffs on goods imported from Canada and Mexico, the automotive market anticipates significant disruption and price hikes in 2025 as a result. There is no such thing as an automobile fully made in the US. Virtually all cars contain parts from Mexico and Canada, and billions of dollars worth of auto merchandise crosses North American borders every year. Industry analysts expect tariffs to increase a car’s price by an average of $3,000, which encourages consumers to keep their current autos longer. That bodes well for the used car parts and repair industries, but even they will have to deal with price increases given that many car parts are imported.
- Economic activity in the services sector including the wholesale sector expanded in October 2024, according to the Services ISM Report on Business. The Services PMI registered 56% in October, up 1.1 percentage points from September, marking the fourth consecutive month of expansion. Fourteen of the 18 services industries reported growth in October including Retail Trade; Information; Transportation & Warehousing; Accommodation & Food Services; Finance & Insurance; Construction; Mining; Public Administration; Utilities; Real Estate, Rental & Leasing; Educational Services; Professional, Scientific & Technical Services; Health Care & Social Assistance; and Wholesale Trade. Fifteen of the 18 services industries reported an increase in prices paid for materials and services during the month of October, including the Retail Trade and Wholesale Trade industries. Sales for motor vehicles and parts wholesalers rose 10.9% in July 2024 compared to a year ago and were up 0.5% from the previous month, according to the US Census Bureau. Inventories for motor vehicles and parts wholesalers were up 11.9% in July 2024 compared to a year ago and increased 0.9% from the previous month.
- The National Federation of Independent Business (NFIB) monthly jobs report shows that unfilled job openings grew in October 2024, with a seasonally adjusted 35% of small business owners reporting jobs they could not fill. The reading is up one point from September 2024. A seasonally adjusted net 15% of small business owners plan to create new jobs over the next three months, unchanged from September. About 20% of owners reported labor quality as the most important problem facing the business. According to NFIB Chief Economist Bill Dunkelberg, “On Main Street, the job market remains challenging. Although the labor market appears to be softening overall, small business owners reported little success filling their plentiful vacancies in October.”
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