How a Scrap Metal Yard Works

If you’re looking to buy some spare parts or need to get rid of some scrap metal, but are unsure how a salvage yard actually works, then you’re not alone. It seems like a mystery, how can a scrap metal yard collect people’s leftover bits of metal and old cars and then make money out of it? Read on to learn how a scrap metal yard works, and what services you’ll find there.

What Is a Scrap Metal Yard?

A scrap metal yard, or salvage yard, is a facility that buys scrap metal and old or broken vehicles from commercial businesses and homeowners who need to get rid of these items. After acquiring the scrap, they sort it into different categories and either recycle the metal and sell it on, or sell parts of the vehicles individually from the yard.

How Does a Scrap Metal Yard Work?

Scrap Yard Operations:

A scrap metal yard collects parts through people bringing unwanted metals and vehicles to the yard, where they’re paid an amount determined by the weight of the delivery. The facility will usually source metals from businesses such as construction or demolition companies, manufacturers, and governments – but the yard is also open for anyone to sell their items.

Once the scrap metal is paid for, it’s sorted into a category like ferrous metal, non-ferrous metal, electronics, or non-recyclable items. Ferrous metal refers to common metals like steel and iron, whereas non-ferrous metals are non-magnetic and usually cost more, they could be metals like copper, brass, or aluminium. Scrap yards will determine the price of the metal-based on the trade market – which fluctuates like the stock market – and so their prices will be different every time you visit.

Metal Recycling:

Anything which is not stored in the salvage yard – ready for people to forage and find – is organised into bins and then goes through a scrap metal recycling process. At scrap metal processing plants, the metal is crushed, separated into ferrous and non-ferrous metals, and then melted down and poured into different moulds. Metal recycling is incredibly eco-friendly, as the energy required to recycle the scrap metal is 75% less than creating metal from raw materials. Also, it conserves our natural resources by reusing what we already have.

What Services Do Scrap Metal Yards Provide?

Every salvage yard is different, and this means sometimes they do scrap metal recycling services on-site and sometimes it’s outsourced to a big recycling facility. The places that do scrap metal recycling have depollution services, where they make hazardous materials like batteries safe and ready to be turned into something else. Every salvage yard will have reusable metal and machinery sales at the facility, so if you need a car part at a reasonable price, they’re the place to go. Also, depending on the place, another service that’s offered is scrap collection, so you can get your scrap picked up if you don’t have a trailer of your own.

Choosing Your Scrap Metal Yard

C.D. Dodd has a range of locations capable of handling your scrap metal needs, with facilities in Perth, Kalgoorlie and Karratha. Get in touch today.

Let’s get started


Gate 1, 521 Dundas Road, Forrestfield WA 6058


Lot 109 Bedrock Turn, Gap Ridge Estate, Karratha WA 6714

Port Hedland

10 Trig Street, Wedgefield WA 6721


1 Coath Road, Kalgoorlie West WA 6430