Junkyards here dealing in second-hand spare parts are still making good profits because of the recent 35 percent hike in the prices of genuine spare parts, but some have been affected by the Kingdom's ban on the import of used spare parts and cars older than five years. Adam Othman, a Sudanese worker at one of the biggest shops at the Braiman junkyard, told Saudi Gazette that the new regulations have seen many motorists turn to cheaper parts that can be bought at the junkyard or “Tashleeh”. He said that the owner of the shop still imports some major parts which are excluded from the ban, such as transmissions, differentials, outer body parts and engines. “We used to bring in damaged cars from Dubai which we dismantled and then sold as used parts. After the banning decision, our dealers in Dubai now have to remove the major parts of the damaged cars and ship them to the Kingdom.” Abdullah Al-Sefri, a trader at the junkyard, said the used parts are about 20 percent cheaper than the genuine ones. He said demand is higher for major parts like transmissions, differentials, and car bumpers, which are sold at much cheaper prices than the original new ones. For example, Al-Sefri says, a new transmission of one of the Japanese cars can be sold now for SR4,000, especially after the crazy hike in prices. “The used transmission of the same model can be found here for SR1,000 to SR1,500. In fact, we have not been affected much by the ban on imported used parts, because customers themselves are coming here in search of used parts and because they are much cheaper than the new ones,” Al-Sefri said. Saleh Al-Harbi, whose father owns a shop at Al-Nahdi junkyard, said while some models of cars make a lot of profit, others like Korean cars older than 2000 are not much in demand. “Some old models of American cars, like those that came 15 years ago, are very much in demand. Customers prefer to get them here because they don't have to wait for a month to get one from the dealer, and simply because they are not available,” said Al-Harbi. Ali Ayoub, a Pakistani shopkeeper at the scrapyard, said that they fabricate some parts, which are not major components, and re-synthesize them using other damaged cars. “We call these parts ‘Tawleef' and some customers want them to save money. My boss buys completely damaged cars or cars with broken engines at a reasonable price. Usable parts are sold and others are just thrown away. So we are able to compensate for the loss we are facing with the ban,” he said. “Before the ban, we would import around 100 tons of used parts every month from Dubai without becoming involved in dismantling and fabricating the parts. The business nowadays is not as profitable as it used to be two years ago. Monthly sales back then were about SR20,000 compared to only SR10,000 now,” Ayoub added. Abdullah Hamid Al-Sefri, the head of the junkyard, who is called Sheikh Al-Tashleeh, said there are about 300 shops in the junkyard that are directly linked to his office. “They are daily supervised and monitored for any violations of the regulatory system or the approved specifications,” he said. He said that if a shop violates instructions, it is shut down and fined. “I usually receive around seven cases involving a dispute between shop workers and customers everyday. I have to take the views of both sides into consideration and try to find the best solution,” he said. __
