Start a Small Car Breaker's Yard

Independent garages, body shops, DIY owners and online parts buyers for parts. Metal recyclers pay for the scrap shells. Some customers pay you to take away their old car.

You pay for each car, then sell parts individually and the leftover metal by weight. Profit depends on buying cars at the right price and turning popular parts over quickly.

• Mechanical knowledge and confidence dismantling vehicles
• Knowing which parts sell and what they are worth
• Record keeping and paperwork
• Negotiating with sellers and trade buyers

• Treating end-of-life vehicles generally needs an environmental permit or authorised treatment facility status, so check this before buying stock
• Planning permission and suitable surfacing and drainage for the site
• You may need a scrap metal dealer licence from your local council, and cash payment rules for scrap apply, so check the current rules
• Rules on issuing certificates of destruction and notifying the DVLA when taking in vehicles
• Safe handling of fuel, oils, batteries, airbags and refrigerant gas
• Public liability and employer's liability insurance, plus fire and theft cover for the yard
• Metal prices move up and down, so scrap income can swing

Estimates suggest startup costs are typically around £25,000 to £100,000, depending on your site, set-up and the stock you buy. Check permit requirements before buying any stock, and allow for insurance and fire and theft cover.

Monthly revenue is typically around £5,000 to £25,000, depending on parts sales and scrap. Metal prices move up and down, so scrap income can swing. Estimates suggest at least 40 hours a week.

Things to check include whether you need an environmental permit or authorised treatment facility status, planning permission, a scrap metal dealer licence from your council, cash payment rules, and certificate of destruction and DVLA notification rules.