How Profitable is Junkyard Business?

Question

I just bought a property that comes that comes with a Junkyard license. How profitable is junkyard business if I decide to make a good use of this? I have $200K set aside for this idea if the potential is good, not sure if that's enough to start.

Thanks!

Answer 1

if you have the room for tons and tons of cars, then just storing the cars and stripping the aluminum and wire out and scrapping the car can be very profitable.

Consider this; recently scrap iron prices were over $180/ton most cars small cars weigh about 2200lbs and up and trucks can weigh 4000lbs and easily weigh 6000lbs.

Thats not even counting the aluminum and copper. Copper was recently $2.50 a pound I believe and if you burn all the wires that you can pull out of those cars to remove the insulation, and clean the iron off the aluminum pieces, you can see how one car has the potential to bring in $400 easily.

Most people will give you a car if it doesn't run because most city's have ordinances against inoperable vehicles. Once a person gets "that" letter, the one that gives them 10 days to "remedy the nuisance".

and.. while you are storing the cars you can sell parts off them, most people are capable of taking parts off themselves but they may break other pieces getting what they want, so you since you are going to have tools around anyway you might want o remove parts yourself.

One last thing, Unless you live in a city that has a recycling center or you have several cars, you will need to invest in a very good trailer. Depending on how far you have to take the cars you may want to take several at a time. That means probably getting a triple axle goose-neck trailer and a 1-ton dually truck.

You are also going to have to buy a "roll-off" truck which are expensive even when they are used. Because you have to gt the cars to the junkyard somehow, right?

Well i hope I was some help and good luck!

Answer 2

A good family friend ran a 'junkyard" for several decades and made a very excellent living doing so. (He bristled at the term 'junkyard', preferring 'auto recycling business') His business entailed purchasing later model wrecks, stripping them for parts, and then reselling to mostly auto body repair shops, as well as to the general public.

Eventually, the business grew to the point that he had ten full time 'parts strippers' dismantling autos as they arrived. Parts were barcoded, and stored methodically in organized racks. When phone calls arrived, a quick look at the computer system indicated whether or not he had the part in stock, its color, condition and other information.

If you know how to develop such a business, it can be extremely profitable.

Answer 3

Well lets just put it this way. You can usually buy a junk car for 50 bucks. Then part it out for anywhere around 300-400 dollars per car. The main thing is just to keep a clean parts yard. Car guys do not want to walk around for hours trying to find one part. But if you can do it and have very loyal clients, you can make really good money at it, with little work.

Answer 4

Lots of poor info on here. Bottom line is, like any business, it can be profitable if you know what you are doing. You need to first check local ordinances and such for having vehicles, and hazardous waste on your property. You will need a license to buy salvage vehicles. Beyond that, you will want liability insurance if you plan to let people come in and pull their own parts. Check ROW52.com http://row52.com/home for a directory of self-service yards to get an idea of what is in your area, and how they operate.

Answer 5

taking in your location and investment (money) the decision of what you want to ..."store"....will be your "golden egg". don't go for household goods ....stay with lumber, flat steel and up to date autos...for parts.....advertising your inventory can be expensive though....you will have to develop a network for drop-offs....don't pay for things that you cant sell!!!....J-yards are for profit, not for storage....get a good dog and wait good luck!!!!!