Business idea №1280
Only on the pages of our portal you will find dozens of business ideas, one way or another related to cars. There is nothing surprising. This area of business is relevant at all times. There are hundreds of thousands of clients in any major city in our country. And tens of thousands in other (smaller) settlements. And offers of services or goods for car owners are in great demand.
With all of the above, it’s probably time to talk about another business idea related to cars. Moreover, this business will be especially relevant right now, during the economic crisis, when everyone is trying to spend money more efficiently. So, we bring to your attention the idea of a business of dismantling cars for parts and the subsequent sale of these parts.
Step one - assessing the odds, looking for a niche
First of all, you need to understand whether it's worth getting into this business in your city at all. If there are no direct competitors, then you can safely proceed to the next stage. If there are competitors, you must first study them. They can be different.
Some auto dismantlers are engaged in dismantling and selling spare parts for almost any car. Others are concentrated on a particular brand or country of origin (only Russian cars, only French, American, Japanese, etc.).
If there are enough German car showdowns in the city, try focusing on "Japanese" or "French". And in general - the choice of a certain niche in this business opens up good chances for success. Adherents of certain brands try to service and buy parts and accessories in specialized places.
You can search for a niche by brands, by country of production, or you can come up with many other niche options. For example, auto demolition of SUVs or auto demolition of trucks. Dismantling of luxury luxury cars can also be a good business idea in a large prosperous city. Etc. Etc. The line of thought is clear. Move on.
Step two - looking for a suitable site
We need a large piece of land. The bigger, the better. In order for you to better understand what a large territory is for, let's see what a regular auto-dismantling is.
First, it's just a fenced-in piece of land where cars bought for spare parts are kept until dismantled. Something like a car dump. But only here cars are not pressed and sent for recycling. Here they wait for their turn, after which all whole parts are dismantled from them, and the remnants of unnecessary metal, glass and plastic are sent for recycling (this is already being done by completely different organizations).
The car itself is a rather bulky structure. For one average car, you need about ten square meters of space. And what if there are 20 such machines, or 50 or even 100? That is why a large territory is needed.
How to open an auto dismantling business with minimal funds. What auto parts are in demand and how much can you earn on auto dismantling.
Auto dismantling for used car owners is an opportunity to buy spare parts for your car at a lower and affordable price than when buying a new part in a store or on order on the Internet.
This is especially true for owners of used cars of foreign production, because if a part fails, then you will have to buy a new one at the price not of the manufacturer, but of intermediaries.
While the part goes from the manufacturer's factory to the final buyer, it goes through a network of intermediaries and customs fees, as a result, the part for the buyer flies into a pretty penny.
In the variant with auto dismantling, everything is much more optimistic for the car owner. Let's say the owner of a used Mercedes or Volkswagen needs a certain part, say a generator. The cost of an original new generator will cost the car owner about $ 400, at a car breakdown you can buy the same used generator for $ 100 - $ 150, the price difference is significant. At the same time, this part cost the owner of the auto disassembly no more than $ 50, because he buys a car at a deliberately low price for disassembly, broken, in disrepair, with expired documents, etc.
How to open auto disassembly: what parts are in demand
To open a car dismantling facility, you will need funds, because you need to buy used cars for dismantling for parts, with a modest budget it is important to start successfully here. The bottom line is the popularity of certain spare parts for certain car brands; in each region, as a rule, certain car brands are popular.
Simply put, if you buy an unpopular car for disassembly, say, a Citroen of the 90s, then there is a very high probability that it will stand unclaimed on your site for a long time and rot. After all, the owners of such cars can be counted on one hand and the likelihood that someone will need spare parts for such a car is reduced to almost zero.
A completely different option is to purchase a popular car for dismantling, at least in Ukraine - Daewoo Lanos or Chevrolet Aveo. Almost all taxi drivers drive such cars, and the demand for spare parts for them is quite high, spare parts for popular cars do not stay long at auto dismantling sites.
So, we need to open auto-dismantling. To begin with, you do not need to run to open an individual entrepreneur or "LLC", and rent a plot for auto dismantling for half a hectare, as the majority of "specialists" advise.
Everything is much simpler, if you have your own house in the suburbs, then this will be enough to place several cars in the yard.
To store auto parts you will need a spacious garage or hangar with shelving.
Now you need to decide on the brands of cars for disassembly, here I will not advise anything, you need to look at which cars are popular in your city and which are not, look at the prices for spare parts at the local car market and in car dealerships, ask the sellers which parts are more in demand and which are not. The only thing I would advise is to focus on one or two car brands, you should not immediately spray on different brands, you need to recoup your investment as soon as possible, and if the spare parts are dead weight, then there will be no working capital for the purchase of the next car.
Nadezhda Tikhonova Last modified: January 2021 453
Is official registration required?
In order to do business and not have problems with the tax authorities, it is recommended to register as an individual entrepreneur or LLC. It is worth choosing a suitable form of doing business based on the planned volume of your business. The easiest way to resolve issues with the tax office is by registering as an individual entrepreneur.
The following documents will be required:
- Application in a clearly established form P21001;
- The original Russian passport and its copies of all pages with marks;
- The most favorable tax regime for a novice businessman - STS. To go directly to it, you need to prepare 3 copies of the notification;
- The state duty for consideration of the application is 800 rubles. The receipt of payment must be provided along with the rest of the documents.
As for obtaining a license, in this case it is not needed. In the process of concluding transactions, it is extremely important to ensure that the documents for the purchased vehicle are in order and meet the requirements of the law. Otherwise, there is a possibility of getting into the field of sight of police and law enforcement officers.
What equipment and consumables are needed
For a comfortable business, you will need to purchase a PC, rent a room with an Internet connection and a telephone. This will allow you to constantly be in touch with clients and customers.
Next, you need to arrange a regular supply of cars for disassembly in order to always have spare parts for different vehicle models in stock. At first, 1-2 cars will be enough. The main suppliers of parts are owners of vehicles that have fallen into disrepair. Today it is becoming more and more difficult to find spare parts for cars manufactured 10 years ago, so if there is an opportunity to buy such a car for analysis, do not miss it.
Alternatively - purchasing some parts from other suppliers for the purpose of subsequent resale. With a sufficient budget for some parts that are not available on the Russian market, you can go abroad. However, in any case, be extremely careful not to fall for the bait of car thieves selling stolen cars.
Usually, the most in demand are those parts that most often fail due to a car accident (components for the engine and chassis). In any case, a detailed business plan should be prepared to open an auto dismantling facility from scratch in 2021. As in any other business, it is worthwhile to assess the prospects and opportunities of your business in advance, as well as perform a detailed calculation of the payback.
Decide on the priority brands that will be profitable to work with and start researching the market. You need to know exactly where and how to get the most profitable parts, how to find rare models and how to replace components that have already been discontinued.
Whether to hire staff
Cars are as passionate to most men as diamonds are to women. Surely everyone has such a friend who is ready to spend hours fiddling with his favorite motorcycle or Moskvich in the garage, just for fun. Probably not one of them would dream of turning a hobby into a profitable business. But usually such people write to the search engines as much as possible "I want to open an auto-dismantling site where to start", then it seems to them that this is too difficult to do and they give up their positions.
In the meantime, it is quite easy to open an auto disassembly from scratch, especially if you have already gained experience and are well versed in cars. In this article you will find all the information you need to start your business.
Justification of the relevance of the idea
It's good to do business based on what you love, but how relevant is auto-dismantling as a business?
Let's figure it out. Today the car is an integral part of human life. Almost every citizen has it. In the CIS countries, not everyone can afford to buy new cars, so we have a thriving resale of cars.
Old cars constantly need repairs and parts, which means that car owners will run for spare parts at the first breakdown. In European countries there are entire supermarkets where only auto parts are sold, but in our country, their sale is still limited to small garage workshops. This area of business is considered to be very profitable and quickly payback, but also quite risky. An entrepreneur who has chosen it for his self-realization needs awareness of all new car trends. To do this, it is worth finding a few familiar good auto repairmen who are free to navigate the forums of motorists. Otherwise, the business may burn out, not having time to untwist.
The implementation of a business begins with registering you as a private entrepreneur (IE) and obtaining a license to carry out vehicle maintenance. Further, there should be an item "Premises", but it is relevant only for those who do not have their own garage. If you still have to rent it, write down an expense of about $ 150 in your estimate. The garage should be located in places with favorable transport links, convenient access roads, preferably near the highway or large parking lots, so that as many customers as possible find you.
Repair and equipment
The room in which to work must be divided into work areas:
Where to start your own business?
It is important to think through all the key points. If a decision is made to open this kind of business, then you need to declare yourself. Customers and parts suppliers should inquire about the auto disassembly opening. Although the business owner will still have to actively look for spare parts for individual cars. You also need to be able to motivate the owners of wrecked cars so that they do not look for other buyers for their vehicles.
Therefore, you need to think about advertising for future auto dismantling.
The area, the distance from the road, the presence of the service station and so on, plays a big role. The convenience of the entrance is also of great importance. The client should not have any difficulty in delivering the car. Whereas an entrepreneur should be able to remove large amounts of waste without hindrance and in a timely manner. The owner of an auto dismantling station cannot afford to forget about the reputation, which depends on the opinion of customers. Having decided on the size of the start-up capital and the expected amount of work, you need to decide whether the auto dismantling will be unwound from scratch in your own garage or you can rent an equipped room. Both options are quite profitable, you just need to correctly determine the volume of production.
Collecting documents and registering a company
To open your business, you must follow the procedure established by law. A novice businessman can register an individual entrepreneur or create an LLC. As for a license to carry out this kind of activity, it is not required. However, when concluding transactions for the purchase and sale of a car, you need to ensure that the documents for the vehicle comply with the requirements of the law.
Finding a suitable place and room
When opening a car dismantling facility, special attention should be paid to the place where the work will be done. He should be located far from urban recreational areas. It is also advisable to find such an area of the city where there will be fewer competitors. When choosing a suitable location, one should decide how much work the entrepreneur will have to deal with. Since the required area of the room depends on this. If the problem with the place is solved, it is necessary to make the correct zoning of the territory. Here you will need the following objects: an office, a warehouse, an auto disassembly workshop and a place reserved for garbage. Attractiveness of an office space is desirable. The office speaks about the authority of the institution. Whereas the room for autodisassembly should be large in area. The workshop must be equipped with the appropriate inventory. The staff must have good working conditions.
Spare parts supply
It is important to remember that the main sales market is the owners of cars that were discontinued 10-15 years ago, or the owners of domestically produced cars.
The most popular parts are those that most often become unusable due to an accident. Considering the quality of roads and fuel, auto dismantlers will often be contacted with questions about the availability of components for the engine and chassis of the car.
The financial side of the business
Starting any business you need to calculate the costs correctly. Starting your own business is not difficult. However, it is important to skillfully continue to develop it. The amount of expenses includes expenses for: