Used auto parts store with counter and stock room

Local drivers, independent repair shops, body shops and restorers who want lower-cost parts with quick local pickup.

You sell parts at a markup over what you paid for the vehicle or part, plus any core charges or delivery fees. Repeat business from local garages helps keep sales steady.

• Strong vehicle and parts knowledge
• Inventory tracking and pricing
• Customer service at the counter
• Buying salvage vehicles wisely

• Many states license auto dismantlers and recyclers, and zoning for vehicle storage can be strict, so check before signing a lease
• Environmental rules for fluids, batteries, tires and refrigerants may apply, so check with your state environmental agency
• Catalytic converter and salvage title rules and record keeping vary by state, so check what you must log for each purchase
• Check what insurance you need, such as general liability and property cover for stock, and workers' compensation once you hire
• Collect and file sales tax as your state requires
• Slow-moving stock ties up cash, so avoid buying more vehicles than you can sell parts from

Startup costs are typically around $25,000 to $120,000, depending on your premises, how much salvage stock you buy and the equipment you need. Slow-moving stock ties up cash, so buy only what you can realistically sell parts from.

Monthly revenue is typically estimated at around $8,000 to $40,000, depending on your stock, location and how much you sell over the counter versus online. The estimate assumes at least about 35 hours a week.

Many states license auto dismantlers and recyclers, and zoning for vehicle storage can be strict, so check before signing a lease. Also check environmental rules for fluids, batteries, tires and refrigerants, catalytic converter and salvage title record keeping, and sales tax.