Built to Last: How Premier Auto Parts Turned a Tow Lot Into a Blueprint for Modern Vehicle Recycling

Premier Auto & Truck Parts shows how a modern vehicle recycling business can grow through discipline rather than volume alone. Scott Kooienga says selective buying, strong warranties, peer learning and active association involvement have helped the Grand Rapids operation improve quality, build customer trust and challenge outdated perceptions of the industry.

Scott Kooienga, Co-owner of Premier Auto & Truck Parts, discusses how the Grand Rapids business grew from a small towing operation into a modern vehicle recycling facility. He explains why selective vehicle buying, strong warranties, peer collaboration and active industry representation have been central to its growth and long-term success.

When my father started Premier Auto Parts in Grand Rapids, Michigan, in 2000, the business consisted of a single flatbed wrecker, one standard tow truck and a handful of people who believed there was more value in a damaged vehicle than most people cared to look for. Twenty-six years later, we operate across 20 acres, soon to expand to 35, employ 65 people and stand as one of the most compelling examples in North America of what a modern, professionally run vehicle recycling operation can look like.

I joined the business at 20 alongside my brother and have co-owned it since 2017. The growth did not happen by accident. The turning point came when our family aligned itself with industry consulting firms that facilitated round-table discussions with non-competing salvage yards across the United States.

“We were able to see the potential that was out there. There were companies smaller than us, the same size as us, and much larger, all sharing best practices, metrics, everything. That’s what really opened our eyes.”

That culture of openness and shared learning is something I see as uniquely powerful about the American auto recycling sector, and something I believe the wider global industry could learn from. Rather than viewing neighbouring operations purely as competitors, we have welcomed other local facilities through our doors to observe our dismantling practices, warehousing and shipping operations. The philosophy is straightforward: a better industry serves everyone, including the customer.

Buying Better, Not Just Buying More

One of the most deliberate strategic shifts we have made in recent years has been moving away from volume-led stock purchasing towards a highly selective approach focused on late-model, low-mileage trucks and SUVs. We often source vehicles from up to 1,000 miles away to find the right quality.

“The better quality, the lower mileage, the nicer the parts are. Something with 50,000 miles is just going to be in far better condition than something with 200,000. The margins are better, and the customer gets a superior product.”

It is a model that requires discipline and a willingness to turn away stock that does not meet our standard, but the results speak for themselves. By feeding more high-quality inventory into networks such as PRP, we have steadily built a parts supply that keeps pace with customer demand and reduces the friction that so often drives buyers back to the dealer.

Standing Behind the Product

Perhaps the most striking aspect of our story is our approach to warranties. In an industry where “buyer beware” was the norm not so long ago, I have taken a fundamentally different position: if a part fails after installation, we cover it. Labour costs included. We do not ask whether the customer purchased an extended warranty.

“I can’t sleep at night knowing that somebody couldn’t afford the extended warranty and now they’re facing a $2,000 bill that isn’t their fault. I sold them the part. It should have worked.”

The approach has not just been the right thing to do; it has proven to be sound business. Those customers tend to become lifelong customers.

The Association Advantage

I am equally passionate about the role of strong industry associations in helping vehicle recyclers navigate an increasingly complex regulatory and legislative landscape. We are actively involved at the state, national and network levels, and I am unequivocal about the value this delivers.

“We have to have a strong voice. We have to be united to make things better for us and to educate lawmakers on what makes sense and what doesn’t.”

With a third generation now beginning to come into the Premier business, the long view matters more than ever. The junkyard image that still haunts parts of the industry’s public perception is something I am determined to change, one customer experience, one Google review and one community payroll figure at a time.