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End of Life Vehicle Directive

What is the End-of-Life Vehicle Directive?

After years of discussion and consultation with interested parties the European Parliament ratified a new directive for processing End of Life vehicles (commonly known as 'Scrap' vehicles).

The parties involved in the directive include:

Vehicle Manufacturers

Vehicle Dismantlers

Materials Recyclers

Automotive Trade Organisations

Automotive Research Agencies

Various other automotive related bodies

Basis of the Directive

Over the coming years the directive is aimed at increasing the percentage of recoverable and recyclable materials used in the manufacture of motor vehicles and recovered during the dismantling and recycling process.

It will not be immediately evident to the general public, but there are a great many planned changes to the way vehicles are manufactured, dismantlers and recyclers handle, reuse and reprocess materials and the discovery of new recycling routes for materials currently designated as land-fill waste.

Discussion and Implementation

The CARE Group (Consortium for Automotive Recycling) was setup by representatives from vehicle manufacturers and recyclers to discuss and plan for the eventual changes the directive would necessitate. CARE is involved in carrying out research for current and new recycling routes and processes, as well as advising government and policy makers on feasible and reasonable steps for the directive.

There are also discussions within the dismantling industry about how the directive will affect our working methods and practices being made by members of the MVDA (Motor Vehicle Dismantlers Association), BVSF (British Vehicle Salvage Federation) and other dismantler trade bodies.

The Future

As the directive takes effect and the various parties begin to develop a system for the most effective handling of end-of-life vehicles, there should be a marked reduction in the use of virgin materials during the manufacturing process and an increase in the amount of recyclable materials recovered during dismantling, and reused.

At present not all recoverable materials can be economically recycled (most materials can be recycled, but at an excessive cost). Research is continuing into different recycling processes and over time the cost of recovering and reusing materials should fall.

Vehicle Processing

Overview

Ever heard the phrase "Where there's muck - there's brass"? In the past its been assumed that vehicle dismantlers have always made lots and lots of money from other people's junk, and whilst there is some truth in that, we don't make as much profit as some people like to believe. We have been in business for over 10 years, and like any other business the profits from our sales have helped us to survive and still be in business today, but you would be surprised to find how much it actually costs nowadays to process a 'scrap' end-of-life vehicle.

The 'Scrap Yard' Image

There are still many people for whom the image of a vehicle dismantler conjures up a picture of a big scruffy man, with a big ugly dog, and big heavy cash-bag around his waist. The yard is a messy, muddy, oil-filled piece of land that requires slipping into knee-high waders before you even consider stepping foot inside the gate, and you have to do all the parts removal work for yourself getting dirty and oil-soaked in the process.

Today's Modern Vehicle Dismantling Industry

Today, however, modern vehicle dismantling operations are run as well as any other professional business. Modern yards have cleaned-up their act to offer better services, a cleaner working environment, and a much reduced impact on the environment from their modern working methods and practices, combining modern technology whilst complying with insurers and modern legislation.

Through legislation and working with industry bodies such as the MVDA , ARA, DVLA , CARE and other motor and recycling related agencies the modern vehicle dismantler's yard is a cleaner, better place to buy recycled and new automotive spares. Nowadays you can leave your wader's at home and visit our yard in your regular clothes without needing to rush off to the dry-cleaners afterwards

What's Changed?

Years ago there was very little requirement for yards to consider the environmental impact of their methods and practices. There is now a whole host of legislation that applies to our industry, and even more is on the way over the coming years. Customers have also helped us to improve our service, and with the advent of computerized stock control systems we can now offer faster, more accurate details for spares enquiries.

What Makes the Difference?

To operate as a professional vehicle dismantler we are required to hold the following licenses/certificates:

Waste Carriers License - So we can transport and deliver recyclable materials, damaged vehicles and crushed vehicle shells

Waste Disposal License - So we can dispose of recyclable or waste materials at our own site, or pass them to other recycling agents for processing

Waste Management License - Qualified waste management operator with certified staff members who have achieved competence in waste management skills

CPC (Certificate of Professional Competence) - To allow us to operate our fleet of vehicle transporters, and our Heavy Goods tractor units and trailers

The licenses and certificates are not easy to obtain and sites have to undergo several stages of inspection from a variety of local authority and Environment Agency representatives before a license is granted. These licenses are your assurance as a customer that a yard is acting professionally and responsibly.

Our yard has also been heavily modified to accommodate the modern dismantling process as well as aiming for compliance with future legislation, although not everything is visible; such as the 'traps' in our water drains to stop waste oils and chemicals filtering into the water table and drainage system.

Dismantling Process

The dismantling process has changed dramatically over the past 30 years and our current processing system includes many modifications that have come about from legislation and discussions with other vehicle dismantlers and automotive industry bodies and agencies.

Let's walk through a typical vehicle arriving at our yard for processing:

Sign-Over / Waste Transfer Documentation - When a customer brings a vehicle for disposal we ask for proof of ownership, usually in the form of a V5 and some personal ID that matches the address. We then complete a waste transfer note confirming the vehicle details, and any fees paid for the disposal of the vehicle. These details are later transferred to our computerized records and the paperwork is filed so that we have a signed document proving the request for disposal.

Stock No. Assigned - Every vehicle is given a unique ID number so we can track its progress through the yard. This number also provides an audit trail for any spares we remove and is referenced on paperwork and records related to its eventual disposal (a) Waste transfer notice: purchase of vehicle; (b) Stock tags for spares; (c) DVLA Electronic Certificate of Destruction; (d) vehicle digital images (where necessary).

Fluids Drained - We now remove fluids that may possibly leak from the vehicle during the dismantling process so they don't get into the water table or drainage system (our drain traps also help to capture any accidental spillages). We store them in specially designed tanks and regularly call-in a specialist recycling agent to remove the fluids for reprocessing or disposal.

Pre-Dismantling - Battery, wheels and tyres are removed to separate reprocessing storage areas. Batteries that are in saleable condition are checked over, recharged and put on our shelves for sale. Unsalable or damaged tyres are stored for disposal to a waste tyre recycler.(this carries a cost of up to one pound per tyre)

Crushed and Recycled - Once a vehicle has been 'stripped' or has little or no saleable spares remaining it will be crushed. A bailer crushes the shells into a large square block and these are loaded onto a trailer and delivered to a fragmentiser for metal recovery and recycling.

ELV Disposal Fee

Why Charge for Disposal?

In the past we have been able to pay money to owners in exchange for end-of-life vehicles, in fact this has been more or less the case for the past 30 years. So why do we now charge a disposal fee? Surely we're getting as many spares as we used to? If there has always been value in end-of-life vehicles, where has that value gone?

The cost of processing vehicles has steadily increased over the past 30 years as vehicles have become more technical and legislation has been introduced to tighten up the operation of vehicle recyclers. Along with the increased reliability of vehicles and the fact that people are buying and running more modern vehicles than in the past. Here's a few of the major factors that have contributed to today's decreased value of end-of-life vehicles:

Reduced Value in Scrap Metal - As more and more recyclable metals have appeared on the market, the price per tonne has reduced.

Reduced Value in Other Recyclate - Where we used to generate income from used tyre casings, we are now charged per casing for their disposal. This is also the case for unusable batteries and removed fluids.

Reliability of Vehicles - Modern vehicles are generally a lot more reliable than their older counterparts, which means fewer potential spares sales for vehicle recyclers.

DIY Repairs - Most modern vehicles cannot easily be repaired by their owners, they're quite complicated under the bonnet, which means fewer owners are attempting DIY repairs.

Easy Finance Terms - Easily obtainable finance means that people are buying and running newer vehicles, which by their nature tend to be much more reliable and require fewer spares for maintenance.

Increased Operating Costs - Expenditure on yard modifications to comply with legislation, increased fuel costs for our trucks, increased administration per vehicle, operational licensing requirements and modern dismantling equipment.

Pattern/Grey New Spares - Pattern/Imported/Grey brand new spares ( not produced by the vehicle manufacturer ) have reduced in price over the years, forcing us to reduce our used spares prices and therefore limiting our potential for profit from each vehicle.

Breakdown of Disposal Costs

Many people incorrectly assume that we can sell most of the spares for each and every vehicle we process, this is simply not true. Every vehicle certainly has potential, but in reality only 15 or so models are popular enough for us to be able to sell some of their spares. For the rest of the vehicles we may sell a couple of spares, but often they will be crushed with the majority of their spares still intact simply because no-one wants to buy them.

We were at a stage a few years ago where the profit from the popular vehicles was being used to offset the losses of the majority of other less popular models. As they got less and less we introduced a disposal charge to recover some of those losses and to pay for the increased labour required to process vehicles within the guidelines of the ELV directive.

A typical vehicle brought to us by a member of the public for disposal goes through the following process:

• Vehicle collected (where necessary)
• Paperwork completed to transfer the waste to us (Waste Transfer Note)
• Stock record created giving the vehicle a unique identification number for our audit trail, and a computerised record created to track the vehicle, documentation, component parts for resale, and waste
• V5 document details added to the computer record (where supplied), along with details of the waste transfer note
• Vehicle moved to draining station where we remove oil, fuel, and other contaminants
• Battery and tyres removed for resale / disposal, along with any 'in demand' spares
• Any removed spares are tagged, stored, and added to our stock system
• Vehicle moved to self service yard for customers to remove spares
• DVLA notified of vehicle destruction
• Once reasonably stripped of parts, vehicle remains are crushed and sent for metals recovery / recycling

Whereas in the past we could generate revenue from unsold batteries and tyres, we now have to pay a disposal fee. We also have to pay for the removal of the fluids and contaminants we collect from vehicles.

We also collect vehicles on behalf of insurance companies, adding extra costs to the recycling process such as out of town collection, additional paperwork and computer record keeping, digital imaging and reporting, etc.

Have disposal charges become a permanent feature? Unfortunately, yes. We plan to regularly review the disposal costs, and where we can make savings we hope to pass those on to our customers, but for the present disposal charges will become a permanent feature for all last owners of end of life vehicles.

In 2007 is it hoped that it will be the manufacturer's responsibility to pay for disposal charges, but as yet there is no firm legislation to confirm this.

Taken with kind permission from :

http://www.wcsauto.com