Owning a junk yard that buys cars can be a very profitable business venture. A lot of people have never really thought about opening a junk yard business but through the rusty doors, punctured tires and broken windshields there is a whole load of cash to be made.
Can you imagine how many broken cars are out there? Most of these cars may look really bad but you cannot miss a good auto part here or there. You can therefore assemble these parts to make new cars or repair other cars. You might as well sell the parts separately. Junk cars can give you a lot of experience in handling cars and this is good for your business.
When starting out this business of junk yards that buys cars, you need to have some knowledge on cars, do background checks on the different car models, which are common in the market, what parts are compatible with other car models, where you will get junk cars and most importantly you need to have some capital to start the business out.
You will also need a truck or a car hauling trailer or a wreaker. Junk cars are obviously immobilized. You cannot drive them to your yard. You need a big truck where you can load it and deliver it to your workshop. Consider buying yourself one or loaning one whenever you need to carry junk.
Are there junk cars in your neighborhood or do you need to cover distance in order to get one? Get to know where your supply will come from. It is important that you do a survey of your area and identify the broken down cars that are up on sale! Remember that you need a willing seller. There can be lots of junk cars in your area but are not on sale, therefore be on the looks out for any cars being sold and always have ready cash for it.
Negotiation skills are also a plus in this business. You are going to interact with a lot of clients, some of which are selling junk cars and others are buying from you. Willing buyer willing seller must come to cash term agreement. You are looking for the cheapest deal while the seller is counting losses and therefore wants the best deal out of it. You should be able to convince the seller on the amount you are ready to spend. Likewise when you are the seller, you should be able to get the best deal out of your items.
Well, you are not going to run the junk yard all by yourself, are you? You need man power, people who can do the dirty job for you or with you. When staring out a junk yard sale you don’t need a lot of workers per say but you do need 2 or 3 other people to help you in running the yard. In your budget therefore include the estimate salary of your workers. If you are stating out the junk yard with friends,view it from http://www.star-telegram.com/living/keller-magazine/article11098460.html it’s more convenient for you then.
Having considered the above, staring out a junk yard that buy cars will be easy for you and your team as well.