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How to start an auto salvage business

Updated February 21, 2017

Auto salvage businesses are needed in almost every town and city of every state. You can start a successful auto salvage business even if you don't have much mechanical experience. Learn how to start an auto salvage business by following these steps.

Find an area of land to start your auto salvage business. Depending on the number of cars you want to deal with, a few acres is all you should need. Junk cars can be parked close together and even stacked on top of one another.

Check local zoning codes and areas to see if the land you have or want is cleared for use as a salvage yard. Most residential areas won't allow junkyards. You may be required to put up a large privacy fence or barrier in some situations.

Write a business plan for your auto salvage business. Write your expectations, plans, goals, needs and how you plan on making money. Potential lenders need to see your business plan before agreeing to loan you money for your business.

Get financing through a bank, your savings or other funds. An auto salvage business is not an expensive business to start. The land is the biggest cost, and if you already own the land, you won't need much money to get started.

Set up your business by having an office, a tow truck, some tools, cutting equipment (such as a cutting torch) and a loading truck or forklift to unload and load vehicles around the yard.

Obtain proper licenses and permits from your local government office for operating the salvage yard. Contact your local D.M.V. (Department of Motor Vehicles) to see what paperwork is needed when obtaining salvaged vehicles.

Advertise your auto salvage business in the yellow pages. This is how most people find salvage yards. Put up large, legible signs at the entrance.

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