How to Scrap Cars for Profit

If you have an old vehicle in your garage there is a chance you are seating on a pile of cash. Car scrapping business is moderately lucrative but requires average knowledge of vehicles.

Selling an old car outright will not fetch maximum price compare to scraping. The exceptions to the rule are classic car or vintage cars that appreciate with age.

You could start car scrapping business full-time, part time or as a hobby. There are three ways to start this business.

The first and easiest way is calling a scrap yard for an estimate and selling. The second method is salvaging the reusable parts and selling the shell.

Alternately scrap the entire vehicle yourself and offering each component for sale. You also have the option of refurbishing the old jalopy and selling.

This option should be considered carefully because only popular vehicles have high value when refurbished. There is a fair chance your old car is totally outdated and this option is not viable.

Finally you could consider flipping cars for huge profit. To flip cars actively search for popular brands in your locality that are either accidental or neglected by owners.

A cash strapped owner desperate for cash would sell at a give away price.

Things to Consider before Scrapping a Car

There are a few things to consider before scrapping any car. The first thing is identifying the actual fault or mechanical problem.

The cause could be an engine component, accident, bad tires or abandonment. Isolating the cause gives a clearer picture on the solution.

If the car is a popular brand find out the secondhand value. If the cost to repair, and refurbish is low consider selling. However if the refurbishing cost out ways the value consider scrapping.

Salvageable Components

You would be amazed at the amount of salvageable components in a vehicle. Every part has intrinsic value because they are reusable.

 Almost every part is scalable even the tires. Sell the tires to rubber recycling or re-threading plant.

The major component that brings good value is the engine. You can sell the doors, chassis, headlamps, wind screen, gearbox and battery.

Even the leftover fuel in the fuel tank could be sold to a friend. More components to salvage are radio/stereo, gear stick, steering wheels, seats, doors, and boot.

The metal components in your car are very valuable to scrap metal dealers and the electrical wires contain highly valued copper.

Components to Salvage

• Steering wheel
• Door
• Boot
• Engine
• Electrical copper wire
• Gear box
• Radio/stereo
• Battery
• Metal
• Windscreen
• Plastic elements
• Fuel
• Seats
• Headlamp
• Chassis
• Seat cover
• Windscreen wipers
• Side mirrors
• switches

How to Sell the Scrap

There are many options on where to sell scrap. You can sell on auction sites, to local dealers, auto sites and eBay. Other places are scrap yards, Craigslist, direct to customers and mechanic workshops.

Where to Selling your Used Car/Parts

•  Auction sites
• Craigslist
• Local dealers
• Auto sites
•  local paper publications
• Scrap yards
• Direct to customers
• Auto dealers
• Mechanic garages
•  Other locations.

Sell to a Scrap Yard

Before you sell your car to a scrap yard you need to understand how that works. Scrap yards generally offer quotes based on the weight of the metal in your vehicle.

They are only interested in the metal value of your car. However smart scrap yard owners salvage the components doubling their profit.

Before selling the vehicle to a scrap yard remove the non metal components such as headlamps, seats and copper wire. This will effectively maximize your profit.

However you could selling the car without salvaging and make less money. Don’t forget to negotiate price with your scrap yard dealer. They expect a little bit of haggling so they offer a lower price than they are willing to pay.

Sell the Parts Yourself

Selling the parts means keeping all the profit. Strip the car entirely and sell each component.

Sell through online websites like eBay or local car magazines. There is a good chance that someone needs that component. You can also sell directly to auto repair shops, used part dealers and car enthusiast.

Refurbish and Sell

Before trying this option make sure the vehicle is trending and the used value reasonable. Important things that affect used value are model of vehicle, condition and popularity.

Find out what others are selling the same model of vehicle. Do minimum work on the car and gloss it up before selling.

Calculate the amount expended on the vehicle and used price before trying this option. If you calculate the estimates properly you could make good money.

Understanding the junk value in comparison to used value provides a clear picture on your cause of action.
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