Small car dismantling yard

Independent garages, body shops, drivers repairing older cars, and scrap metal recyclers who buy the stripped shells.

You buy cars cheaply, sell parts at a price per part (engines, doors, alternators, wheels), and sell the leftover metal by weight to a recycler.

• Mechanical knowledge of cars
• Knowing which parts sell and what they are worth
• Safe handling of tools, fluids and heavy parts
• Basic bookkeeping and stock tracking

• Zoning and provincial environmental approvals for dismantling yards, which vary by province and municipality, so check before renting a site
• Safe draining and disposal of oil, fuel, coolant, batteries and air conditioning refrigerant, which may need trained or certified staff
• Commercial general liability and property insurance, plus WCB/WSIB coverage once you hire
• Proof of ownership and provincial vehicle record requirements when buying and scrapping vehicles
• Rules on selling certain parts such as catalytic converters, which may require records or be restricted in your province
• Winter slows yard work, and ground contamination from leaking fluids can become expensive to clean up

Startup costs are typically estimated at around $25,000 to $120,000, depending on the site, tools, vehicle purchases and insurance. Ground contamination from leaking fluids can become expensive to clean up, so it is worth planning for.

Estimated monthly revenue is typically around $6,000 to $30,000, depending on the vehicles you buy, which parts sell and scrap metal prices. Winter slows yard work, so plan your cash flow for the colder months.

Check zoning and provincial environmental approvals before renting a site, as they vary by province and municipality. Also check safe disposal of fluids, batteries and refrigerant, vehicle ownership and record requirements, catalytic converter rules, and insurance and WCB/WSIB coverage.