Used car parts shop with a small yard

Local drivers, independent garages and body shops, and sometimes hobbyists and fleet owners wanting lower-cost parts.

Walk-in and phone sales of parts, regular trade accounts with garages, and online listings for harder-to-find items. Margin comes from low vehicle purchase costs and fast-selling parts.

• Good mechanical knowledge
• Parts identification and fitment
• Customer service
• Stock and cash management

• Dismantler or dealer licensing and zoning, which vary by province and municipality, and Quebec has its own rules
• Environmental compliance for fluids, refrigerants, batteries and tires, which may include inspections and record-keeping
• Commercial general liability and property insurance, plus workers' compensation (WCB/WSIB) coverage if you hire
• Theft and stolen-parts checks, including keeping purchase records for vehicles and parts
• Tying up cash in vehicles and unsold stock, so start small and track which parts sell
• Slower winter months and a lot of heavy, dirty work

Startup costs are estimated at typically around $25,000 to $100,000, depending on your unit or yard, vehicles bought and stock held. Monthly revenue is estimated at about $8,000 to $40,000. Starting small and tracking which parts sell helps limit tied-up cash.

Check dismantler or dealer licensing and zoning, which vary by province and municipality (Quebec has its own rules). Also check environmental compliance for fluids, refrigerants, batteries and tires, stolen-parts record keeping, insurance, and workers' compensation coverage if you hire.

Estimates start at around 35 hours a week. You will want good mechanical knowledge, parts identification and fitment skills, customer service, and stock and cash management. Expect heavy, dirty work and slower winter months.