Small auto salvage and dismantling yard

Local mechanics, body shops and DIY drivers buying used parts, plus metal recyclers buying the stripped shells and sorted metals.

Profit comes from the gap between what you pay for each vehicle and what you earn from parts sales and scrap metal by weight. Prices for scrap metal move up and down.

• Mechanical know-how and part identification
• Fair pricing and negotiation
• Record keeping and organizing stock
• Safe handling of heavy equipment

• Zoning and approvals: rules differ by province and municipality, so check before you sign a lease
• Environmental rules for draining fluids, refrigerants, batteries and tires, and for stormwater runoff
• Cleanup liability for contaminated soil, so check what you may be responsible for on leased land
• Proof of ownership and records for every vehicle you buy, to avoid taking in stolen vehicles
• Commercial liability insurance, and WCB/WSIB coverage if you hire (check your province)
• Winter slowdowns, frozen ground and heavy, dangerous work

Startup costs are typically around $40,000 to $150,000, depending on your land or lease, equipment, vehicle purchases and insurance. These are estimates, so check site costs carefully before you sign a lease.

Monthly revenue is typically around $8,000 to $40,000, depending on the vehicles you buy, parts demand and scrap metal prices. Expect around 35 hours a week at the start. These are revenue estimates, not profit.

Check zoning and approvals with your province and municipality before signing a lease. Also check environmental rules for fluids, refrigerants, batteries and tires, cleanup liability on leased land, proof of ownership records for every vehicle, and insurance including WCB/WSIB if you hire.