Small auto salvage yard
Dismantle end-of-life cars on a small lot and sell used parts and scrap metal to repair shops and the public.
- $25k-120k
- Full-time
- Own premises
- Licence or permit needed
Estimates for a small start in the US, not guarantees.
Official data
1,805 US businesses with employees in this field, +2.3% in a year
NAICS 423140 “Motor vehicle parts (used) merchant wholesalers”. Source: U.S. Census Bureau, County Business Patterns 2023.
What it is
A small lot where you buy junk, wrecked and end-of-life vehicles, drain the fluids safely, pull the reusable parts and sell the rest of the shell as scrap metal.
Your first three steps
- Call your city or county zoning office and your state's licensing agency to find out where a dismantling yard is allowed and what license it needs
- Price out a lot or small industrial unit, plus basics like a forklift or engine hoist, hand tools and fluid drain equipment
- Start sourcing vehicles from insurance auctions, tow companies and private sellers, and set up a simple parts inventory and listing system
Who pays
Do-it-yourself car owners, independent repair shops and body shops, parts resellers and scrap metal buyers.
How it makes money
Sales of used parts (engines, doors, wheels, electronics) at the counter or online, plus scrap metal and catalytic converter or core sales to recyclers where legal.
Skills that help
- Mechanical knowledge of cars
- Pricing used parts and vehicles
- Organizing inventory
- Customer service at the counter
Watch out for
- State dismantler or salvage license, surety bond and any required inspections, rules vary by state
- Zoning limits and fencing or screening rules from your city or county
- Environmental rules for fluids, batteries, refrigerant and stormwater, check with your state environmental agency and the EPA
- Vehicle title and record-keeping rules, and rules on buying and selling catalytic converters
- General liability and garage or property insurance, and workers' compensation once you hire
- Heavy, dirty work with injury risk from lifting and sharp metal
Deep research report · US
Everything you need to start: small auto salvage yard
Researched with live web search for United States: real startup prices, the licences and rules, what others charge, a break-even example, how to find your first customers and a 30-day launch plan. With sources.
- Startup costs with real prices
- Licences, registration and rules
- Pricing: what others charge
- Break-even example
- Finding your first customers
- 30-day launch plan
- Risks and how to reduce them
Questions people ask
How much does it cost to start an auto salvage yard?
Startup costs are typically around $25,000 to $120,000, depending on your lot, equipment and opening stock of vehicles. Treat these as estimates and get quotes for your own area before committing.
How much can a small salvage yard earn?
Monthly revenue is typically around $8,000 to $35,000, depending on the parts you sell, scrap prices and how many vehicles you process. The estimate assumes at least about 35 hours a week of your time.
What licenses and rules should I check for a salvage yard?
Check your state's dismantler or salvage license, surety bond and any required inspections, as rules vary by state. Also check zoning, environmental rules for fluids, batteries and refrigerant, and vehicle title and catalytic converter rules.
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