Benefits of Auto Recycling

The following are some available facts about the North American automotive recycling industry.

If you are an ARA Member, you may view the 1997 Automotive Recycling Industry Profile & Analysis (Revised 1999).

  • In 2006, the gross annual revenues are an estimated $10 billion.
  • Recycling vehicles provides enough steel to produce almost 13 million new vehicles.
  • In 1997, auto recyclers acquired 4.7 million vehicles for the purpose of recycling.*
  • An estimated 11 million gallons of oil and, 6 million tires were recycled in 1997.*
  • Automotive recyclers spent nearly $50 million on environmental compliance in 1997.*
  • The majority of automotive recycling businesses used a computerized inventory system.*
  • Automotive recyclers provide wholesale and retail customers quality parts that sell for up to 50% less than the comparable new parts.
  • Automotive recycling businesses employ over 46,000 people at more than 7,000 businesses in the United States
  • An estimated 86% of automotive recycling companies is full-service and employs 10 or fewer people.*
  • The majority of automotive recyclers can often locate parts faster than new part dealers because the facilities are connected by telephone, satellite and/or computerized communications systems to recyclers across the globe.*
  • Automotive recycling decreases insurance rates by purchasing inoperative vehicles from insurance companies, thus allowing for recovery of financial losses.
  • These vehicles came primarily from individual owners and salvage auctions.*
  • Automotive recycling keeps highways and roads clear of abandoned and disabled vehicles by providing a place to deposit these vehicles.

* Most recent ARA statistical data regarding the automotive recycling industry. Data compiled from a 1997 survey by the private consulting firm, Axiom Research Company.