Salvaged cars hold a lot of value to many businesses. People buy them for spare parts, to recycle the metal, or to give themselves the challenge of building a car from the ground up.
If you want to start a business selling salvaged cars, follow the following steps:
1. Get a junkyard operation license.
To get a license, you will be required to provide some details such as your name, residence and postal address.
The licenses are under the regulation of the department of motor vehicles but are issued based on the regulations in your city.
2. Raise capital
If your credit record with your bank is good, you shouldn’t get any problems accessing a business loan.
If you have managed to save up some money in the past, this is even better.
Another option for raising capital is to get investors. This could be your friends or business people in your area whom you think would have interest in your business.
You should prepare a business proposal to use with the bank and the investors in order to improve your chances of getting funding.
3. Get a yard
Purchase some land to run the business in. Buying land that has office blocks on it is good but since it is developed property, it will be more costly.
It is better to buy a vacant yard and put up any buildings you desire.
4. Beef up security in your yard
You will need to build and make some modifications to the yard before you bring in the salvaged vehicles:
· Build offices
You need to build an office. To cut costs, you can build container offices as these can be fitted with all the amenities that you would find in a permanent building
You will need to put up a perimeter fence to keep out burglars. For increased safety, you can put up an electric fence.
You will need to erect cameras and motion sensors along the fence and within the yard.
To add on to the above security measures, you should hire night guards and guard dogs.
5. Source for salvaged vehicles
Once you are comfortable that your yard is safe enough, you should buy some salvage vehicles.
Many auctions deal in junk cars. Auctions offer very good prices because they use a bidding process to arrive at the selling price
You can also buy at car sales. There are times when companies decide to sell any old or damaged vehicles that have not been used for a prolonged period of time.
Insurance companies may be another option that you should consider using because they encounter many salvage cars in their line of work.
Newspapers are also a good place to find salvage vehicles. Some people even advertise for trade-ins in exchange for a service.
Another option is to check on the internet. Many online businesses welcome bids for salvaged cars.
6. Market your business
Now that your business is set to open, you can advertise in any of the following ways:
· Word of mouth
· Print an advert on a prominent bill board showing salvaged cars for sale on a road nearest to you
· Print an advert in the local newspaper
· Use the internet and social media
· Put up a signage with your business name and phone number on it.