In the auto recycling world, there are two primary customer-oriented business models: full-service and self-service.
Both models perform the essential task of recycling end-of-life automobiles, removing old cars from the road, selling usable parts, and turning the rest into scrap metal. With the automotive industry consistently ranking among the top 10 largest industries worldwide, automotive recycling businesses play a crucial role in the global economy. Approximately 40% of new steel is produced from recycled metal, with auto recyclers processing over 14 million tons of steel annually.
While full-service and self-service operations may seem similar, there are key differences in their revenue models, customer bases, and reliance on global metal markets. Discover how understanding these distinctions can help you make informed decisions for your salvage yard or junk yard.