Getting into the business of buying junk cars can be lucrative, but you have to use your head. Buying just any junk cars can lead to a deficit in cash flow. You have to learn how to evaluate junk cars for their potential value before you buy junk cars. Here are some tips that will give you a good start as you begin this venture.
Various Types of Scrap for Recycling
Some scrap metals earn more money when you recycle them. For example, you will find it a common practice among your competitors to ask people if their junk cars have steel or aluminum wheels. Steel is more valuable and will garner your business more money when you recycle these steel wheels. Aluminum will still earn some money for you, but not nearly the same amount that steel would. Your competitors pay people a little more for steel wheels, but only because they (the competitors) will get more money for the steel wheels on the flipside. Be sure to follow suit and buy as many junk cars with steel wheels as you can.
How much can you strip out of the engine block that is actually still good? When buying a junk car, ask the owner if they have replaced any engine parts recently. The more newer parts that are in the engine block, the more you can strip this vehicle down and turn it into auto parts for sale. Be sure to have someone who is knowledgeable about car parts carefully examine every part removed from the engine block to make sure the parts are in excellent working condition before selling off the parts.
Age of the Vehicles
There are some vehicles that can be salvaged and restored or turned into "project" vehicles. These vehicles should be purchased and stored somewhere on your business lot out of the elements. Then there are vehicles that are too old and too beat up or damaged to do anything with. These older, beaten-up vehicles, should you buy them, will need to be crushed into cubes for the recycling plant. Usually, people in this line of work do not want to buy really old junk cars because it costs more to go pick them up and pay the owner/seller for them than it does to turn these junk cars into something profitable. Take that into consideration as you buy junk cars.