Used Motor Vehicle Parts Wholesalers

The 1,396 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.

Sep 9, 2026 - Canada Trade Uncertainty Rattles the Auto Parts Supply Chain

• The White House’s escalating trade fight with Canada is creating a new round of headaches for US auto parts distributors that rely on a tightly connected North American supply chain. Trump said tariffs on Canadian cars, trucks, auto parts, and steel will rise to 50% on January 1, 2027, just days after suggesting a broader trade deal was close. For distributors, the constant shifts make it harder to know what parts will cost, where to source them, and how much inventory to carry. Many components cross the US-Canada border several times before reaching distributors, allowing tariffs to ripple through costs well beyond goods imported directly from Canada. Stocking up ahead of potential increases can protect against shortages but ties up cash and risks leaving distributors with expensive inventory if policy changes again. Canada’s counter tariffs on US goods add another layer of uncertainty to cross-border parts flows.
• The automotive right-to-repair debate has gained momentum as lawmakers and industry groups push to expand independent access to vehicle data needed to repair increasingly connected vehicles. In 2026, the federal government began reviewing policies that could make it easier for consumers and independent shops to access repair information and aftermarket parts. Congress advanced legislation that would codify key elements of existing voluntary repair agreements between automakers and the indie repair industry. Meanwhile, Massachusetts remains the focal point of a legal battle over access to vehicle telematics data after a federal court upheld the state's landmark right-to-repair law. Automakers argue that limits on access are necessary to protect cybersecurity, privacy, and vehicle safety, while independent repairers contend that broader access is essential to preserve competition and consumer choice. As software, over-the-air updates, and advanced driver-assistance systems become standard, the outcome of these legal and regulatory efforts will reshape the automotive aftermarket.
• Inventories are piling up across the auto parts industry, but it’s less a sign of collapse than a case of companies overcorrecting after the chaos of recent years. In the wake of pandemic and tariff shortages, manufacturers ditched lean “just-in-time” models and began stockpiling parts, only to find demand cooling as higher interest rates slowed car sales and repair activity normalized. At the same time, the industry’s uneven shift to electric vehicles has left suppliers heavy on legacy gas-powered components even as long-term demand drifts elsewhere. A final twist: as supply chains unclogged, delayed shipments landed all at once, further swelling stockrooms. The backdrop isn’t weak demand (the global aftermarket is still expected to top $500 billion in 2026, according to Motor Intelligence) but rather a mistimed balancing act between obstacles largely beyond the industry’s control.
• The US sources more than four out of every ten auto part imports from Mexico, which hit a record 43.7% market share in 2025 - a dependency that persisted even as the Trump administration imposed tariffs on automotive goods, steel, and aluminum. This integration supports the more than 10 million vehicles assembled annually in the US, helping automakers keep costs competitive. However, the relationship carries real domestic risks: the US runs a trade deficit in the sector, with Mexico posting a $35.4 billion surplus. While nearshoring trends and USMCA trade rules have helped shift some supply away from China and Germany, critics question whether the US is meaningfully building domestic parts manufacturing capacity or simply trading one foreign dependency for a closer one. With 87% of Mexico's auto parts exports flowing directly to the US, any disruption south of the border would have immediate consequences for American production lines.

Industry size & Structure

The average used motor vehicle parts wholesaler operates out of a single location, employs 16 workers, and generates $10.5 million annually.

• The used motor vehicle part wholesale industry consists of almost 1,400 firms that employ about 22,890 workers and generate about $14.8 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.