Running Your Own Junk Car Removal Business

Business Overview:

Starting a junk car removal business is a great way to be your own boss, set your own hours and work with interesting people. When a car is old, rundown and doesn’t work, the owner needs to get rid of it. Operating a junk car removal business can prove to be a valuable service to people who are unable to properly dispose of old cars. It’s a safety hazard to have a rusty car on a homeowner’s property – kids can hurt themselves or lock themselves in the trunk. If the car doesn’t run, it needs to be towed to a salvage yard. Your job will be to tow junk cars from their original locations to a salvage yard. For owners of cars who are not interested in donating their junkers to the salvage yard, you can partner with a company that pays cash for clunkers. This may actually be the salvage yard(s) you work with. Some salvage yards pay for these cars because they, in turn, sell the parts to people willing to pick through the old cars. Just because a car is old and immobile doesn’t mean the door, for example, isn’t in perfect condition or couldn’t be restored and attached to a classic car by a rebuilding enthusiast. You will be paid by the car owners and possibly by the salvage yards as well. If you already own a towing business, adding junk car towing your list of services would be a simple way to increase your profits. If you do not own a tow truck, you will obviously need to purchase one. Other than a truck, you will need to spend some money on marketing but you can also just work directly with salvage yards and contract your services with them. Junk car removal is one of the more unusual business ideas out there but one that is necessary and can be easily run in your spare time.

A Day in the Life of a Junk Car Removal Business Owner:

Your day will begin by checking in with your salvage yard contacts to see if they need you to pick up any cars. You will also take phone calls throughout the day from customers needing you to haul away old cars. When you’re not towing cars, you will work on marketing your business around town (phone book ads, fliers in auto shops, etc.). If you have a staff who does the towing for you, your day will center on running the business and executing your marketing plan.

About Your Customers:

Your customers will be individuals who need old cars hauled away and taken to a salvage yard. You might also contract with salvage yards who will pay you when you deliver cars to their lots.

What You Need to Start:

• Tow truck
• Marketing plan and materials
• Staff (optional)
• Computer with finance software

The Good:

• If you already own a tow truck, the start-up costs are minimal.
• You can easily run this business from home.
• You can work as much or as little as you like.
• You can charge the car owners as well as the salvage yard for the same car.
• If you don’t want to handle the towing yourself, you can hire a staff to work for you.

The Bad:

• If you do not own a tow truck, the start-up costs can be high.
• Work hours can be unpredictable; you may go for long stretches without any work calls.

Resources:

• Towing and Recovery Association of America
• Automotive Recyclers Association
• Bureau of Labor Statistics on Truck Drivers
• Wikipedia on Wrecking Yards

About The Author

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