You sell them out the door for a cash price. You inventory each unit and grade them or send them out for bid using an app. You bring in three companies and have them bid on your lot. You send them to a processor who assays the lot and sells the metal for you. The bottom line in recycling converters is to get paid for what’s inside.
Only One Way
We preach and preach about the fact that there is only one way to recycle a scrap catalytic converter. Destroy it. Scientifically test it. Pay the processing and refining charges. Sell the metal as high as you can. By now, most recyclers realize that it’s not rocket science. You need a process you can trust. You need a partner you can trust. Here is why.
It’s What’s Inside™
Quiz: If you buy a 2012 Subaru Legacy 2.5 i Premium Sedan, with regards to the cats, you would have two resonators and one catalytic converter. It looks like a foreign pre.
What cash amount would that bring you from the street?
$50, $60, $70? How much do you think this small manifold converter is worth? $250, $350, $450? $550? The difference between street price and assay is significant. Look at the placement of the converter and the number and placement of the oxygen sensors. This is a clue to a higher value. It is a small unit, doing a big job. For the answer to the exact value of the 2012 Subaru Legacy manifold converter, you can email or call us. The point is that there is no way to tell the true value of a converter by visible inspection. Only with assay, or testing, can you know how much precious metal is inside your converters.
The Future is Bright
For those of you who have caught the wave, the value of the converters is a bright light and an important sale. With the depressed steel and aluminum market, the precious metals sales are helping to make the car purchase cash flow positive.
Despite auto sales declining and converter biscuits getting smaller, precious metal loadings are increasing to meet the tightened emission standards worldwide. The supply of palladium (Pd) remains in shortage while demand remains high for 2020. This fact should support strong Pd prices in 2020.
Even with investors consolidating to take year-end profits, and geo-political factors causing a ruckus in the equity markets, the precious metal prices are up more than forty percent year-over-year.
The 4 Ps of Converter Recycling Profitability
In an industry that has historically been rife with smoke and mirrors, as recyclers looking to get the most from your converters, you need a Process, a Program, and a Partner you can trust, and you need to learn the Power of Education.
At United Catalyst Corporation we believe that an educated recycler is our best customer. In fact, we give you an education in auto catalyst processing and precious metals refining. We take a complex process and try to make it understandable and easy to use. We know that once you learn about your converters and your yard profile, you will increase your profits, and no one will ever be able to take advantage of you again.
To learn more about selling converters on assay or to read other articles in this series, please email me at email@example.com or call us at 864-834-2003.