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
Jul 23, 2024 - Compact Cars, EVs Lead Price Declines
- Wholesale used vehicle prices for compact cars and EVs fell the most in May 2024 compared to a year ago, decreasing 17.6% and 16% respectively, according to data from Manheim Consulting. Wholesale used vehicle prices overall dropped 12.1% in May 2024 compared to a year ago, and all vehicle segments posted price decreases. Sales for the US used motor vehicle wholesalers industry are forecast to grow at a 3.5% CAGR from 2024 to 2028, slower than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc.
- 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.
- The National Federation of Independent Business (NFIB) monthly jobs report shows that unfilled job openings fell in June 2024, with a seasonally adjusted 37% of small business owners reporting jobs they could not fill. The reading is down five points from May 2024. A seasonally adjusted net 15% of small business owners plan to create new jobs over the next three months, unchanged from May. About 19% of owners reported labor quality as the most important problem facing the business. According to NFIB Chief Economist Bill Dunkelberg, “This summer, small business owners continue to try to hire and find qualified employees for their open positions. The number of small businesses with one or more job openings they can’t fill remains at exceptionally high levels. However, owners are raising compensation at historically high levels to attract and retain employees.”
- The Institute for Supply Management reported its services-sector PMI contracted to 48.8% in June 2024 from 53.8% the previous month. It was the second contraction in a three-month period, following 15 consecutive months above the baseline growth. The report tracked the performance of 18 service sectors, out of which eight posted gains in June. Growth sectors include Other Services; Management of Companies & Support Services; Health Care & Social Assistance; Construction; Utilities; Finance & Insurance; Educational Services; and Professional, Scientific & Technical Services. Eight sectors showed a decrease in June, including Agriculture, Forestry, Fishing & Hunting; Real Estate, Rental & Leasing; Mining; Retail Trade; Public Administration; Wholesale Trade; Transportation & Warehousing; and Information. The Services PMI report is based on data from purchasing and supply executives nationwide compiled by the ISM.
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