Getting Started Buying And Selling Junk Cars

Scrap metal prices have risen greatly in the last decade, and this has created unprecedented opportunities for some folks to make money on the side by dealing in junk cars. Junk cars can provide welcome income because not only can you sell the metal shell at scrap metal prices, in some cases you can also remove and sell parts as well. If you want to go into your own business selling junk cars, here are some things to keep in mind.

Know The Value

Buying junk cars from people to re-sell them involves some risk, as you have to be certain you can get your money back. When approaching people about buying their junk cars, be sure to keep in mind that you will not only have to get your money back and profit, but you also need to calculate in your own costs to move the junk car to the scrap metal company.

Additionally, you should know approximately how much the junk car is worth. You can use the weight of the vehicle (and potential metal earnings), the scarcity of the vehicle and any potential parts as approximations of the value you might get back out of it. A good rule of thumb is to offer half the value, as this will guarantee you some profit.

Hauling Issues

Remember that you will have to regularly drag, haul and move around junk cars when buying and selling them, so be sure that you have the right hauling equipment. Not all junk cars can be towed, so you will likely need a good trailer and a means to move the car onto the trailer.

Don't forget to keep phone numbers of friends or acquaintances who may be able to help you haul cars for a small fee – an extra pair of hands can be invaluable in moving derelict vehicles.

Finally, be sure to check state and local laws in regard to towing with a trailer or tow rope. Make sure you have any and all required equipment and permits so you don't get a ticket while hauling your vehicles.

Storage Considerations

Unless you can take the junk cars straight to the scrap yard each and every time, you may need a large yard where you can store the junk cars on your property. If you plan on buying and selling junk cars on a regular basis, create a spot where you can store the vehicles when needed.

Use these tips to help your budding junk car business grow. For more tips and information, contact n experienced junk car company like Cash For Junk Cars.