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
Sep 26, 2024 - Sales Down, Inventories Rise
- Sales for motor vehicles and parts wholesalers fell 0.9% in June 2024 compared to a year ago and were down 2.9% from the previous month, according to the US Census Bureau. Inventories for motor vehicles and parts wholesalers were up 10.9% in June 2024 compared to a year ago and increased 0.9% from the previous month. The inventories/sales ratio for motor vehicles and parts wholesalers was 1.88 in June 2024, up 11.9% year over year and up almost 4% month over month.
- Carvana is expanding its auction operations at its “Megasite” ADESA wholesale auction facility in Houston, adding inspection and reconditioning center capabilities, according to a recent report in Auto Remarketing. The online used-car retailer said the new services will expand reconditioning capacity and network efficiencies, improve delivery times for local retail customers, and provide more robust auction offerings for local commercial customers. The Houston site is 43 acres and has more than 5,000 parking spaces. Carvana announced a similar expansion to its Megasite ADESA location in Kansas City in August 2024. Carvana acquired wholesale auction firm ADESA in 2022. Used motor vehicle parts wholesalers purchase salvage vehicles at auctions.
- The National Federation of Independent Business (NFIB) monthly jobs report shows that unfilled job openings grew in August 2024, with a seasonally adjusted 40% of small business owners reporting jobs they could not fill. The reading is up two points from July 2024. A seasonally adjusted net 13% of small business owners plan to create new jobs over the next three months, down two points from July. About 21% of owners reported labor quality as the most important problem facing the business. According to NFIB Chief Economist Bill Dunkelberg, “Job openings on Main Street remain historically high as small business owners continue to lament the lack of qualified applicants for their open positions. Owners have grown understandably frustrated as attempts to fill their workforce repeatedly stall and cost pressures continue to rise.”
- US light duty aftermarket sales exceeded projections in 2023, growing by 8.6% to $392 billion, according to the 2025 Auto Care Factbook released by the Auto Care Association. The sales surpassed the projected 8.1% growth forecast despite challenges such as persistent inflation. Light vehicle sales growth is expected to be 5.9% higher in 2024. The industry is expected to continue to improve, with a sales forecast of $617.3 billion in 2027 for the total light, medium, and heavy duty automotive aftermarket. Consumers seeking affordable options for service and repair to keep their cars running are driving stable growth in the industry.
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