The Junkyard, also known as Mike's J (the "J" standing for "Junkyard"), is a location in Paradise where wrecked or decommissioned vehicles are brought. On Monday, the Postal Dude realizes his car is not working, but does nothing to get it repaired. It is until Friday that one of his errands is to get an alternator for his car. The junkyard is accessible on Friday via the Napalm Factory Exterior.
When the Postal Dude arrives, he finds Mike, the owner of the junkyard, behind some boxes that form a desk, and his assistant standing under a hanging car. If the chain that hangs the car is shot, the vehicle will fall on the assistant and crush.
The Postal Dude can either pay Mike for the alternator or to steal it. If he pays, Mike will take him to the place where the alternator is, but a group of dogs will come an attack and kill, and then proceed to target the Dude. If the Postal Dude steals it, he will be attacked by the same group of dogs and by Mike himself. Either event, however, will result in a tower to fall and crash over a fence, unleashing more dogs and blocking the way out. The Postal Dude must find an alternative way to escape, but he has to face a large group of rabid dogs that come to attack him. Towards the exit, there is a machine for demolishing cars.
- The signpost outside the Junkyard berates the player in case they thought "Mike's J" was actually "Mike J", who is a developer at Running With Scissors Inc.
- Interestingly, in Paradise Lost, Mike J resides in the Junkyard.
- A airplane cockpit is located in the junkyard, its unkown why its there.