Besides the well-known auctions, such as those for cars, houses, motorcycles, and more, there is a type of auction responsible for storing goods and offering a number of advantages to participants and buyers: we are talking about scrap metal auctions. 

And, as many people know, through auctions it's possible to find many items for up to 70% less than they're actually worth. And scrap metal auctions can be a real goldmine. 

In fact, it's a great opportunity to make money or save on auto parts. Therefore, in this article we'll show you what this type of auction is, the advantages it offers, and how you can participate. 

According to the first paragraph of article 328 of the Brazilian Traffic Code, scrap is any impounded motor vehicle that is not fit to be driven, either due to serious damage or lack of parts. 

In this case, what do the State Traffic Departments (Detran) across the country do with this type of vehicle considered scrap that accumulates in their yards? That's right, they auction them all off! 

Cars, motorcycles, trucks, and vans that are auctioned off annually by the Department of Motor Vehicles (Detran) throughout the country are seized primarily in the following situations:

According to the same article of the Brazilian Traffic Code, any vehicle impounded by the Department of Motor Vehicles (Detran) and not claimed within 60 days is subject to evaluation for auction. 

Therefore, the purpose of a scrap metal auction is both to clear out the state agency's yard and to settle debts of the former owner, such as overdue financing installments and vehicle taxes, fines, and other expenses. 

As you can see, the article of law states that a scrapped vehicle cannot be driven, correct? Because this constitutes a very serious offense, even after rebuilding any and all vehicles considered scrap.

Furthermore, you will be subject to the penalties stipulated in the Brazilian Traffic Code. Therefore, the only permitted action is to salvage the vehicle's parts, which may even be in excellent condition. 

There are two different ways to make money from a scrap auction: first, by reselling car parts to scrap yards or recycling centers that process a wide variety of materials. 

Then, there's the removal and sale of vehicle parts that are in good condition. Therefore, we're going to teach you how to profit from these two methods. 

Scrap iron is actually any type of material containing loose or baled iron and carbon steel, such as solids, rolled and cast products, pipes, bars, filings and shavings, coils or sheets. 

Automobiles are also a type of scrap metal, with a considerable amount of material available. Therefore, cars purchased at scrap auctions can replace steel in various applications. 

Aluminum is a soft and malleable material in its pure form. However, its hardness can be increased by hardeners. This material is the result of extensive work done with alloys. 

The elements used in these alloys are typically copper, magnesium, and silicon. And, although few people know it, it is very common for vehicles to contain large amounts of aluminum in their composition.

Whether pure or blended with other alloys, it's a surefire way to make money at a scrap metal auction. 

Also known as Latvian scrap metal, it refers to all types of material, whose main elements are copper and zinc, which appears in smaller proportions.

Moreover, zinc is quite malleable and resistant, making it easy to use and work with, especially in the manufacture of objects such as pins, screws, and wires. 

Therefore, an easy and sure way to make money is to buy a scrapped car and resell it. 

Hollow iron is a type of scrap metal made from high-carbon composite material, which generally arises from the manufacturing process of cast iron. 

This scrap metal is produced in large quantities by the automotive industry, which uses iron with a low oil content and free of impurities. Therefore, it's another sure-fire seller at scrap yards and recycling centers. 

Another way to make good money from scrap auctions is by reselling parts removed from these vehicles, which may even be in excellent condition. 

In fact, in these cases it is possible to sell everything from small, unique pieces for each model, to the larger ones used in one or more examples of the same brand.

Some examples include transmissions, cylinder heads, and even doors, for instance. So, contrary to what many believe and even preach, scrap metal auctions are highly profitable. 

Just because it's called scrap metal doesn't mean you shouldn't be careful before participating in or even bidding on this type of auction. After all, we're not just talking about buying scrap metal. 

Therefore, we have outlined some precautions for those who want to raise money in these types of auctions to take. 

As we've shown you several times, auctions once again prove to be an excellent investment opportunity, even when we're talking about buying scrap metal. 

But it must be agreed that this name is somewhat inadequate, since in addition to profiting from the metals present in a car, it is possible to find excellent quality parts, in excellent condition, for very low prices. 

After discovering how to make money with this type of auction, you're probably wondering: how to participate and where to find a trustworthy scrap metal auction to participate in?

As always, our goal is to help you in every way possible when it comes to cars. Therefore, we've created an article to show you the main steps to participate in and find safe scrap car auctions. Access it below!