Salvage Car Business – The Smart Guide to Success

Salvage Car Business – The Smart Guide to Success
09 Aug 2018

With hundreds of thousands of cars being totaled every year in the USA, and the economy underperforming for long, salvage yards have been doing very good business. Many people who are attracted to this lucrative business often end up disappointed when their businesses prove to be failures. However, like any other business, it is possible for you to set up and operate a salvage yard on a sustainable basis by getting the basics right. Some useful tips:

Salvage bmw

Why Do People Buy from Salvage Yards?

A salvage car business can have three distinctly different facets. There are some yards that specialize in flipping cars. Essentially, this consists of spotting good deals where salvage cars are bought and extensively rebuilt and recertified to be roadworthy again. Often the totaled cars can be bought very cheaply and the damage set right without too much effort and sold for a handsome profit. However, this is generally restricted to the older cars which are often totaled even for minor damage.

The other aspect of operation is dismantling the salvaged cars for sale and selling off the spare parts and components. Therest of the car body and chassis are then sold off as scrap, which also fetches an attractive price due to rising cost of virgin metals.

Salvage maserati

Ensure You Have a Proper Business Plan

The main reason why salvage car businesses often fail is that no planning is done with respect to the sort of investment required, where the business will be set up after complying with the zoning requirements, from where the salvage cars will be bought, and to whom the rebuilt cars and parts will be sold. The chance of making profits also dips if sufficient in-house expertise in evaluating and repairing cars is absent. Many people also fail to carry out a study of the competitive environment and enter markets that are already crowded. A proper budgetary and cash flow projection, if not done, will leave the business strapped for cash and running into losses.

Salvage porsche

Map Out Your Market

Since the main sources of salvage cars are the insurance companies and large auction houses, you need to reach out to them and ensure that you are included in their contact list whenever any sales or auctions are planned. Also, let your local community of workshops and car owners know that you are in business. Do not be disheartened if you are setting up your business in a small town because you can very easily expand your market with the help of a feature-rich website that can get you customers from all over the country. Be sure to have a cost-effective and impactful advertising and communication strategy ready.

Salvage steering wheel


Approach your business with the clarity of thought and single-minded determination. Do not try to do too many things at the same time. Attractive as it may be, flipping cars for a good margin can often be quite difficult. It can be a better idea to build a sustainable business by focusing on spare part and scrap metal sales in the initial stages.

Happy motoring!


Kelly Wilson

Kelly Wilson is a freelance content writer. She has written many informative articles on categories including technology, health, fashion, education, career, travel, etc. She is a featured author at various authoritative blogs in the health and fitness industry, and currently associated as a blogger with

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