Junk car buying and scrap metal pickup

Car owners and landlords who want an old vehicle gone, plus people clearing out garages and properties. Your buyers are scrapyards, recyclers and parts dismantlers.

You keep the gap between what you pay the seller and what the yard or recycler pays you for the vehicle or metal. Some jobs add a pickup fee, and you can pull a few easy parts to sell before scrapping.

• Towing or hauling with a truck and trailer
• Negotiating fair prices
• Knowing which metals and parts hold value
• Careful paperwork

• Title and ownership rules: check your state's requirements for buying vehicles without a title and for bills of sale
• Whether your state or city requires a scrap metal dealer or salvage license, and what records and ID checks apply
• Rules on catalytic converters and other commonly stolen items, which are strict in many places
• General liability and commercial auto insurance for towing and hauling
• Prices for scrap metal move up and down, so your margins can change quickly

Startup costs are typically around $3,000 to $15,000, depending on your truck or trailer, towing gear, insurance and the cash you keep on hand to buy vehicles. These are estimates, and you don't need your own yard to start.

Monthly revenue is typically around $1,500 to $7,500, depending on how many vehicles and loads of scrap you buy and sell. Scrap metal prices move up and down, so your margins can change quickly.

Check your state's rules for buying vehicles without a title and for bills of sale. Check whether a scrap metal dealer or salvage license is required, plus record and ID rules, catalytic converter rules, and general liability and commercial auto insurance.