Small car dismantling yard

Home mechanics, repair workshops and panel beaters buy parts. Metal recyclers buy the stripped shells and other scrap.

You sell used parts, either at the counter or listed online, and sell the remaining metal by weight. You may also earn from buying vehicles and from selling batteries and catalytic converters where the rules allow.

• Mechanical knowledge of cars
• Safe use of tools and lifting gear
• Pricing and selling parts
• Record keeping and organising stock

• Planning approval and site zoning, which are often the hardest and slowest part, so check with your local council
• A state motor vehicle dismantler or trader licence, where your state requires one
• EPA rules on fluids, oil, batteries, tyres and air-conditioning gases, including any licences for handling refrigerants
• Stormwater and ground contamination risks, which can bring fines and clean-up costs
• Workplace safety for lifting, cutting and fire risk, plus workers compensation once you hire staff
• Public liability and property insurance, and record-keeping rules for vehicles you buy
• Parts and scrap prices can change, so stock can tie up cash

Startup costs are typically estimated at around $50,000 to $200,000, depending on your site, equipment, safety setup and the cash you need to buy vehicles. Cost your own plan carefully before committing.

Monthly revenue is typically estimated at around $10,000 to $40,000, depending on the vehicles you buy, the parts you sell and scrap prices. Expect to work at least about 35 hours a week.

Check planning approval and zoning with your local council, which can be the slowest step, and whether your state requires a dismantler or trader licence. Also check EPA rules on fluids, batteries, tyres and refrigerants, stormwater and contamination risks, workplace safety, insurance, and vehicle record-keeping.