As most of us are already aware, a breakers yard makes it's money from disassembling cars, vans and other vehicles into parts which are then sold on for profit. Although there are rules and regulations around setting up such a business, the process is a fairly simple one, so if you are thinking of starting your own, here are a few tips and pointers to get you started.
Of course, you will need a fair amount of knowledge in this field-you must know how to disassemble a vehicle, and have experience in the type of parts, makes and models you will be selling. There are also certificates and qualifications needed, particularly if you are aiming on going down the route of repairing vehicles also.
If this is something you are paying serious thought to, start by contacting the necessary authorities to ensure you know what the laws and regulations are governing starting a breakers yard in your country/state. You may need planning/ building approval for example. Things to consider also will be insurance requirements, bonding requirements and any local restrictions.
The next item to consider would be location! It is vital that you not only pick a premises that is in the right location to attract enough sales, but also that it meets any zoning restrictions/ legal regulations, and is the optimum size for you in order to accommodate enough parts in storage, vehicles, equipment, parking and office space. Around three acres is a reasonable expectation for size and of course every premises/ facility will differ in terms of the lease price so you will have to shop around to find something that suits your budget.
Not only are zoning restrictions a potential factor in where to house your business, but environmental policies play a huge factor in this genre of business and you will need to familiarize yourself with the regulations regarding air, noise and water protection so that you comply with all the laws governing this area.
Once you have obtained your premises you will need to secure it and make it safe by installing fencing and a security system. This may be a requirement for your insurance but it is also vital to ensure that you are safeguarding your premises and assets. You will also need to weather proof any assets exposed to the elements.
To start with you will need to invest in equipment such as vehicle lifts, a tow truck, wheel crusher, storage drums for liquids and office equipment. In order to operate the equipment, you, or a member of staff, will need a commercial drivers license.
Insurance can be fairly complex. When choosing a policy, you will need to consider factors such as cover for employees, waivers for customers, all stock, equipment and the facility. Also, the insurance policy must meet the minimum legal requirements for the business.
A breakers/salvage yard license is vital in order to start trading. You will need to apply for this and pay all the necessary fees involved.
Stock is obviously crucial, so you will need to invest in some vehicles and stock to initially fill your requirements and refill as it starts to sell. Advertise your business locally and nationally if possible and a website is advisable to reach a much larger range of potential customers.
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