Start a small car wrecking yard in Australia

Local mechanics and panel beaters, everyday drivers fixing older cars, and scrap metal buyers.

Part sales over the counter and by phone, plus scrap metal payments for the stripped shells. Profit depends on buying cars at the right price.

• Mechanical knowledge and confidence with tools
• Valuing cars and parts quickly
• Customer service at the counter and on the phone
• Basic record keeping

• State licensing for motor vehicle dismantlers or wreckers, which varies by state and territory
• Council zoning and EPA rules on fluids, batteries, tyres and stormwater runoff
• Refrigerant gas from air conditioning may need a licensed handler, check the requirements
• Checking vehicles against stolen and written-off registers and keeping buying records
• Public liability insurance, and workers compensation if you hire
• Safe handling of airbags and heavy parts

Estimates for a small yard are typically around $40,000 to $150,000, depending on your premises, tools and equipment, and how many vehicles you buy to dismantle at the start. Get quotes for your own area before committing.

Things to check include state licensing for motor vehicle dismantlers or wreckers, which varies by state and territory. Also check council zoning, EPA rules on fluids, batteries, tyres and stormwater, and whether refrigerant gas from air conditioning needs a licensed handler.

Monthly revenue is typically estimated at around $8,000 to $40,000, depending on the cars you buy, the parts you can sell and your location. Expect to work at least 40 hours a week. These are revenue estimates, not profit.