How to Build a Salvage Yard

Step-by-Step Guide

1. 1

   Step 1: Purchase a business license.

   You will need the appropriate licensing from your government's business regulatory agency in order to operate a junk yard.
2. 2

   Step 2: Save your money.

   Starting a salvage yard costs money.
   
   You will need to purchase property, obtain the proper licensing, advertise and stock up on inventory. , Salvage yards tend to cover several acres, and must be in a commercially-zoned area.
   
   Additionally, there should be an office building, or the necessary space for an office, on the property. , Fencing.
   
   Many salvage yards use chain-link fencing with a barbed-wire topper.
   
   Be sure to include ample gates to allow for easy delivery of your auto inventory.
   
   Cameras.
   
   Because all of your business inventory is out in the open, it is a good idea to have cameras attached to motion-detectors in case of an after-hours intruder. , There are many ways you can find inventory for your salvage yard.
   
   Classified ads.
   
   Use local newspapers and online classifieds websites to advertise that you will pick up junk cars.
   
   You may opt to offer money for junk cars, but you may also be able to get junk cars for free in exchange for your pick-up service.
   
   Auctions.
   
   Auctions are a great place to find junk cars at below wholesale prices.
   
   Depending on the type of auction you go to, you may have to get a dealer's license.
   
   Estate sales.
   
   Keep an eye out in local newspapers for estate sales, where auctioneers and/or homeowners try to liquidate all of the contents of a property, including used cars. , You will want to log every vehicle you have and where it is at on your property, as well as any parts you sell off your salvage yard vehicles.
   
   Choose accounting software that enables you to track inventory and sales, as well as produce invoices. , Be sure to have an over-sized sign on your border fence that can be read from the road.
   
   Create a website that allows Internet users to search your inventory.
   
   Take out print ads in local newspapers.
   
   Place ads on Internet classifieds websites.
3. 3

   Step 3: Locate and purchase an appropriate property.

4. 4

   Step 4: Take the proper precautions to protect your auto salvage property before you stock it.

5. 5

   Step 5: Stock up on inventory.

6. 6

   Step 6: Develop a tracking system for your inventory.

7. 7

   Step 7: Advertise your auto salvage yard.

Detailed Guide

About the Author