Archive for September, 2008

The turmoil this month (Sep 08) in the US Financial markets, leading to further downward pressure on the UK economy and the UK Automotive industry in particular has played a part in strengthening the used car part sector.
The UK Motor industry has seen a sharp fall in the value of used vehicles this summer and autumn, and it is much more than in previous years. Some estimates of car depreciation put the drop as much as 25-30% of new and nearly new vehicles for this year alone.
Cars worst affected are the large 4 x 4s and the bigger family cars.  In April 2009 the new VED (Vehicle Excise Duty) comes into effect, which aligns heavy fuel consumption to the Government’s new green taxes structure.
The slowdown in the car market has been caused by the Global Recession and the continuing fear of rising Interest rates and inflation. However the interesting factor here for us is the positive affect on the car parts sector as a whole, and the continuing demand for used car parts and parts location services (like CarSpareFinder), in particular.  
People are holding off buying a new car, or replacing it. There is evidence of extending the ownership of car from new, from 3 years to 4 years or more. Linked b y cause and effect is an increasing demand for replacement car and van parts, and the consumer desire to extend the life, value and quality of car and light commercial lifetime ownership.
Is this upward trend in demand for used car parts a ‘flash in the pan’ or is it likely to remain for sometime?
It appears there are 2 main factors which are behind the present strong demand for car parts, unlike many other industries (retail,  diy and home furnishings, financial service and holiday sectors) who have all seen a very sharp fall in business.  
Firstly, people are being charged too much to borrow the money they need to fund their spending e.g. purchase of a new car. Secondly, vehicle depreciation, which can be many hundred of pounds sterling a month, has gone into ‘free fall’.  It has surprised even the Automotive Industry experts just how fast it has happened, with larger cars with bigger engines being the worst affected.
What might be influencing the used car parts marketplace?
·         4 x 4 and Large family car owners may be reluctant to ‘write off’ the value of their cars if they trade it in. By hanging on to the car, their requirements for replacement parts increases (crash repairs, new bulbs, tyres, replacement engines and gearboxes etc.)
·         When they need parts, they are much more inclined to accept a genuine recycled part (e.g. engine, gearbox, body panel) of a similar age and condition to their present car.
·         Cheap counterfeit car parts from Eastern Europe and the Far East, has a counter effect on consumer demand for genuine used car parts from establish UK breakers and dismantlers.
·         Less newer cars means that the demand for used cars is greater, which means that more garages and mobile mechanics are attracted to doing up cars and bringing them to market. This increases demand in the motor trade for used car parts.
·         Demand for scrap metal in the UK is increasing due to the demand for metals from the growing Indian and Chinese industries, encouraging cars to be scrapped using services like scrap-car which is a free service offered by CarSpareFinder to the General Public and UK breakers and dismantlers.

Hi Julian here.

I was just scanning through some of CarSpareFinder’s used car parts requests today (Wednesday 17 September 2008) and I came across a used Nissan car parts request for a Nissan QX Dashboard complete on a ’57 plate. Luckily one of CarSpareFinder breakers had one in stock – I believe the price for this used car part was £85 plus vat and delivery. This car part new might be as much as £500, from Nissan Car Parts direct. The difference in value between new car parts and used car parts sourced on parts location sites like CarSpareFinder is clearly evident.

What sort of used car parts are the most popular? One might be forgiven thinking it is the ‘old bangers’ which are the most sought after for second hand car parts? This is not the case at all. The example above of a dashboard complete for a Nissan 12 months old used car part shows that it ranges for car parts for the ‘nearly-new’ sector i.e. cars less than 24 months old, and the second hand market extending to models 15 years old. Breakers have a preference for the fast moving used car parts sector i.e. car parts most in demand namely for models from 3 to 6 years old (currently 02 to 55 plates). I suspect the near to 2000 one gets the lower the price for used car parts is. I don’t have exact data to prove this but some rough and approximate analysis of CarSpareFinder’s car part requests indicate the used car parts for car models before 2000 represents approximately 40% of the total, making 60% for car parts 8 years of less.

What are the most popular kinds of car parts requested on CarSpareFinder – one of the UK’s leading parts location services for car parts, van parts, and motorcycle parts? The answer is probably obvious to most people when they think about it – replacement car parts for crash repairs. This includes bumpers (front and rear), bonnets, headlamps (offside and nearside), wings (offside and nearside), doors (offside and nearside), wheels, and radiators. Of course, engines and gearboxes are extremely popular, and CarSpareFinder receives over 200 hundred a week of used car parts requests for transmissions and car and van engines. Last Thursday (11 September) I noticed VanSpareFinder received over 7 diesel engine (complete) van part requests in one day, and over 20 in the week. It just shows how much demand there is in the UK for car parts to keep cars and light commercial vehicles on the road.

Autumn 2008 and the UK is now officially in recession. Registrations of new cars are down 20%. Retail shops have reported a sharp downturn in takings. Despite the cripplingly high cost of both diesel fuel and unleaded petrol, artificially high because most of it is Government tax, transport will remain essential business and personal expenditure. Demand for used car parts has steadily risen over the past 10 years. The automotive industry anticipates an ever increasing need to recycle, with future legislation committing car and car parts manufacturers, car parts suppliers, car dealerships, dismantlers, breakers yards, and scrap dealers to recycle a greater percentage of their inventory. Over two million cars are written off every year in the UK. It is estimated that 10% i.e. 200,000 need not have been shipped to the scrap-yard. Insurance companies are looking at changing how they calculate accidents and write offs, by offering customers an option of repair work with used car parts. This is in accordance with environmental initiatives. At present it not compulsory for insurance customers, but the time is fast approaching when it may become the norm rather than exception. This extra demand will be a further boost to the growing used car parts market. CarSpareFinder, one of the leading internet parts location services, attracts over 140,000 unique visitors a month to its website. It has launched other initiatives to help breaker yards distribute and sell more of the stock of recycled car parts, such as CarSpareAuctions. It is also helping raise the profile of breaker yards by the launch of Breaker Yard Finder, which will hopefully encourage more consumers of used car parts source the products locally.

Everything seems to be going up these days, from fuel, to energy and even food. But there is still bargains around for certain items, including cheaper car parts. With 2 million cars been taken off the road each year, breaker yards have millions of car parts to dispose of, and you are the beneficiary of the cheaper prices. By using CarSpareFinder’s online request form, your car part request will be whisked to several breaker yards at once.

Not matter what make of car you have, from Vauxhall to a top of the range Mercedes, there are more than enough car parts available to keep your motor on the road. There can be huge savings, especially for larger items such as engines and gearboxes, which in most case have a guarantee to ensure you get many more miles from your car.

There are other reasons beyond saving money for why you should buy used car parts and that is also contributes to saving energy and reduces land fill. By re using your car parts, you save the need for manufacture and also having them disposed. Very often the car parts you order will be genuine manufacture makes, that came with the now salvaged car from new, rather than a cheap import from China.

Currently Vauxhall and Ford owners are the main users of the CarSpareFinder system, making thousand’s of car parts requests every week. They know they get a great deal and save money, buying guaranteed car parts. So join the informed and start using CarSpareFinder to find your next requirement for your car.

2008 saw a reduction in new car sales, meaning more older vehicles will remain on the road increasing the need for car parts over the following years