Used car parts yard and counter

Local drivers, independent mechanics, panel beaters and online buyers looking for affordable second-hand parts.

Profit comes from selling parts for much more than the cost of the car, plus scrap metal income and some fitting or delivery fees.

• Mechanical knowledge and safe dismantling
• Stock tracking and part numbering
• Pricing and negotiating
• Counter service and dealing with trade customers

• Dismantlers usually need a state licence and must keep records of vehicles and parts, check your state's requirements
• Environmental rules for draining oils, fuel, coolant and refrigerants, and for storing waste, check with your state EPA
• Council zoning and planning approval for a yard
• Workplace safety, as dismantling involves heavy parts, lifting and hazardous materials
• Public liability and workers compensation insurance once you hire
• Check rules for selling safety-critical parts such as airbags, and keep good records to avoid trading in stolen parts

Startup costs are typically around $30,000 to $120,000, depending on the premises, equipment and how much stock you buy. Council zoning and planning approval for a yard should also be checked early.

Estimates suggest monthly revenue of typically around $8,000 to $40,000, depending on how many vehicles you dismantle and how quickly the parts sell. The estimate assumes at least about 35 hours a week.

Check whether your state requires a dismantler licence and records of vehicles and parts. Also check environmental rules for draining oils, fuel, coolant and refrigerants with your state EPA, plus council zoning, workplace safety and rules for selling safety-critical parts.