Small auto salvage yard
Run a small yard that buys damaged vehicles and sells used parts to local repair shops and walk-in customers.
- C$30k-150k
- Full-time
- Own premises
- Licence or permit needed
Estimates for a small start in Canada, not guarantees.
What it is
A small yard or unit where you buy damaged, written-off or end-of-life vehicles, dismantle them, store the parts and sell them over the counter and online. Whole vehicles may be sold to rebuilders, and the remains go to scrap.
Your first three steps
- Check with your municipality about zoning for an auto dismantling or salvage yard, and with your province about the licence and environmental approvals needed
- Visit nearby yards and repair shops to see what parts are in demand and what gaps you could fill
- Price out a small site, a hoist or forklift, tools and insurance, then plan your first few vehicle purchases
Who pays
Local repair and body shops, rebuilders, DIY owners, and sellers of scrap metal who buy the leftover shells.
How it makes money
Profit comes from selling parts and whole vehicles for more than the purchase price, plus scrap metal sales and any fees for taking in vehicles.
Skills that help
- Vehicle dismantling and part knowledge
- Pricing and inventory management
- Dealing with trade customers
- Safe handling of fluids and heavy items
Watch out for
- Zoning, environmental permits and provincial licensing, which differ by province and municipality
- Rules for handling and disposing of oil, fuel, batteries, tires and refrigerant, and the risk of soil or water contamination
- Commercial general liability and property insurance, and WCB/WSIB coverage once you hire (check your province)
- Safety risks from heavy parts, lifting equipment and sharp metal
- Record keeping for every vehicle bought, to guard against stolen vehicles
- Winter conditions and seasonal swings in scrap prices and demand
🔒 Full research report for Canada
Real cost breakdown with current prices, licences and registration checklist, local competition, pricing, break-even and a 30-day launch plan, with sources.
Coming soonQuestions people ask
How much does it cost to start an auto salvage yard in Canada?
Startup costs are typically estimated at around $30,000 to $150,000, depending on the yard or unit, equipment and how many vehicles you buy at first. These are estimates, so price your own site and tools before you commit.
How much can a small salvage yard earn?
Monthly revenue is typically estimated at around $8,000 to $40,000, depending on the vehicles you buy, the parts you sell and scrap prices. Treat this as an estimate, since scrap prices and demand can swing with the seasons.
What licences and rules apply to a salvage yard?
Check zoning, environmental permits and provincial licensing, which differ by province and municipality. Also check the rules for handling oil, fuel, batteries, tires and refrigerant, insurance, WCB/WSIB coverage once you hire, and record keeping for every vehicle bought.
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