SCRAP TO THE FUTURE
Auto Express
|May 24, 2023
We visit the vehicle recycling centre that's changing the face of scrap dealers and promoting component recycling in the process
WOULD you consider letting a garage or bodyshop fit second-hand parts from a scrap dealer to your pride and joy? If the answer's no, then you'd better check the small print on your insurance. Any number of policies these days have a clause in the T&Cs saying that repairs can include salvaged parts at the whim of your insurer.
They call the parts 'recycled' or 'green' rather than second-hand, which puts a more positive spin on the proposition, and insurers don't allow any safety-critical used parts to be fitted when dealing with a claim, regardless of their reported condition. Used body and trim parts are fair game, though, as long as they are in a suitable condition, and as long as the car they came from is no older than the car being repaired. In the eyes of the insurance industry, this means customers will not be left in a worse position than they were before an accident.
In spite of the terminology, the trend towards recycled parts is not driven primarily by the desire to save the planet, although companies will happily bandy around stats to show how the use of salvaged parts will help to save us all from global warming. The reality is that post-pandemic supply chain issues mean insurers are struggling to find the new components needed for repairs, and are increasingly turning to the vehicle-dismantling industry to help fill inventory gaps and get jobs completed. The fact that they can save a few quid undoubtedly helps too, but there's no sign of savings being passed to consumers via lower premiums.
From the dismantlers' point of view, improved standards mean more sales at higher prices and increased profit.
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