Not a business opportunity for everyone but a market where there is a substantial business to be built. It’s major disadvantage is the space required to park a car, or cars for dismantling and space for the storage of parts. Also there is the cost of a basic tool kit to allow the easy disassembly of the vehicle.
I came across this idea when my old Rover died and was beyond economic repair, it had been with me 10 years and it was like loosing the family pet. I phoned around the scrap yards and the best offer I had for my car was $15 which I regarded as a complete insult, the parts sold separately would be worth far more than $15. so I tried the idea and put my radio/CD player for sale on eBay and that brought in $20 straight away.
I then advertised some of the other parts such as the front and rear lights. Again these sold very quickly as did some of the interior switches and pieces of trim. Over a few weeks I sold some of the smaller, easy to dismantle engine parts such as the distributor, water and oil pumps. I then sold the window glass and the side light glass (I didn’t bother with the front and rear wind screens). I think I must have taken over $250 which was considerably more than the $15 I was offered for the full vehicle.
But here’s the best bit, I sold the remains of the car for $15 to one of the scrap merchants. There is always a demand for second hand car parts, and most of the large components where still present in the vehicle. The obvious place to start is eBay but by staying with eBay you will limit your options. If you want to do this to make money on a consistent basis then register yourself with one of the online part services.
Here’s how it works, you register your details with one of these brokers together with your parts inventory, when someone makes a enquiry to the company (this is done online) they will receive a series of e-mails with the details of each vendor that has the part for sale, together with the selling price. Each company is different but it is easy to see how the system will work. Obviously be competitive with the pricing and conduct your own research.
Some companies will charge you a flat monthly fee or annual fee to register rather than take a commission on each sale, they will then e-mail directly to you the parts enquiry and you can then deal directly with the customer.
Here’s how, register under another e-mail address as a buyer and submit a series of enquiries for the parts that you have on offer, you can then gauge the correct pricing for the part and for the transit costs.
In part 2 how to obtain your stock.