Small salvage yard
Run a licensed yard that buys damaged vehicles and sells whole cars, used parts and scrap to repairers and buyers.
- $30k-150k
- 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 fenced yard on leased or owned land where you buy damaged, wrecked or unwanted vehicles, store them, and sell them whole, as parts or as scrap metal. You may also take walk-in customers and offer parts locating.
Your first three steps
- Call your city or county zoning office and state licensing agency to check where a salvage yard is allowed and which licenses and permits apply
- Price out suitable land or a lease, fencing, a tow or flatbed arrangement and basic dismantling equipment
- Set up an inventory system and a few buying sources such as towing companies, auctions and private sellers, then line up a scrap metal buyer
Who pays
Repair and body shops, DIY car owners, rebuilders, export buyers and scrap metal recyclers.
How it makes money
Parts and whole-vehicle sales, scrap metal sold by weight, and sometimes fees for taking in vehicles or towing. Margins depend on what you pay for each vehicle.
Skills that help
- Vehicle and parts knowledge
- Buying and pricing judgment
- Inventory tracking
- Customer service and negotiating
Watch out for
- State salvage or dismantler licensing, bonding and record-keeping rules. Check with your state DMV or licensing board
- Environmental rules on fluids, batteries, tires and stormwater runoff. Check with your state and local environmental agencies
- Zoning limits, fencing or screening rules, and inspection requirements from your city or county
- General liability, garage or property insurance, and workers' compensation once you hire
- Scrap prices and vehicle costs can swing, so don't over-buy stock
🔒 Full research report for US
Real cost breakdown with current prices, licences and registration checklist, local competition, pricing, break-even and a 30-day launch plan, with sources.
Coming soonQuestions people ask
How much does it cost to start a salvage yard?
Startup costs are typically around $30,000 to $150,000, depending on the land or lease, fencing and the vehicle stock you buy. These are estimates, so get local quotes before committing.
How much can a small salvage yard earn?
Monthly revenue is typically around $8,000 to $40,000, depending on how many vehicles and parts you sell. These are estimates, and scrap prices and vehicle costs can swing, so don't over-buy stock.
What licenses and rules should I check for a salvage yard?
Check with your state DMV or licensing board on salvage or dismantler licensing, bonding and record-keeping. Check environmental rules on fluids, batteries, tires and stormwater, plus zoning, fencing or screening rules and city or county inspections.
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