2020 has really brought in many changes across all industries, and the COVID-19 issues are forcing businesses to change how they operate. On the bright side, auto recycling was considered an essential business, and auto recyclers were allowed to stay open, even if they had to change how they serviced their customers.
At Auto Data Direct, we service a wide range of businesses - car dealers, insurance companies, tow companies, auto recyclers, shredders, title companies, and others - and like most companies, we did see a drop in business for the first few weeks of the shutdown, but are beginning to see most businesses starting to recover as states open back up, and the world tries to adjust to the new normal. Through the shutdown, many auto businesses stayed busy, and others even expanded as people had the time to handle their vehicle’s repairs and maintenance. Other factors have also contributed to the changes within the auto market. While more people stay at home, the number of car accidents has decreased, resulting in fewer “parts” vehicles and rebuildable vehicles. The shutdowns have also impacted foreign trade, creating some of the lowest metal prices ever and a unique situation - vehicle prices remain high as demand for parts is strong, catalytic prices remain higher, and inventories for purchase are low. Metal prices are so low that many businesses can’t justify selling the “hulks” because, after labor and other expenses, it’s hard to breakeven when getting rid of vehicles.
With a high demand for vehicle parts, it’s important to make informed inventory purchases. Vehicle history reports can show the life cycle of a vehicle and any incidents that have affected it over time. With the salvage pools reporting daily to NMVTIS and more states actively using and reporting to NMVTIS, the NMVTIS database has become a very cost-effective way for businesses to view vehicle history reports versus some of the other commercially available options. It may not be necessary to run a history report on a vehicle if you’re looking for body panels, cores, or scrap. However, if you’re looking for a larger profit by reselling motors and transmissions, a vehicle history report can give you confidence that you’re investing in good inventory.
When using NMVTIS vehicle history reports, you can see the last recorded mileage, changes in ownership, salvage incidents, and reports made by salvage pools. This information can be helpful if the current mileage can’t be determined, if there have been many owners which could signal a problem vehicle, or if there were insurance reports or flood or rebuilt brands. Some reports also include additional details like stolen checks, lien checks, and recall information. Two things that should be red flags in NMVTIS vehicle history reports are previous reports made by salvage pools and rebuilt brands. It happens much more than people realize, but vehicles can be purchased from a salvage auction, then taken to a shop to pull and replace the motor and transmission with “bad” parts. That vehicle then goes back to a salvage auction and is resold to unknowing buyers who end up paying too much. Previous salvage brands that show back up at a salvage pool suggest “bad” repairs during the rebuild. NMVTIS vehicle history reports can reveal things that aren’t visible in pictures, so if the report shows “something,” it is highly recommended to have the vehicle physically inspected to confirm its condition or to adjust bidding accordingly.
Auto Data Direct, Inc. offers NMVTIS vehicle history reports with a national stolen check, active recall information, and a national lien check to auto recyclers for $1.50 each for companies that have accounts with ADD. The NMVTIS reports can be run individually, in batches, or on-demand during an auction. NMVTIS vehicle history reports are an affordable second check to prevent paying too much for potentially bad salvage vehicles.