Scrap/Breaking Vehicles

[valverguy]

Hey guys,

Few questions for anybody in the know...

A close friend has approached me, He is currently looking to start dismantling/breaking vehicles for parts/scrap.

He already has a recovery truck (for his projects) and we have found a suitable premises for the operation.

However a few things ring alarm bells for me...

Firstly: Is it even viable? Isn't this done to death these days, with the price of scrap at what £120-£130 Per ton(in our area), surely people with end of life cars etc are weighing them in and still laughing to the bank with £150+ usually.

To me this means purchasing a vehicle would cost a minimum of £200, factor in labor/advertisement of parts (think ebay or if possible owner forums), then surely that's got to mean that we need to be making £500+ in parts from every vehicle (assuming all parts sell).

We can of course scrap whats left i suppose...

Secondly: My friend seems to think with the premises dusted you can just off and go, and start coining it in. Thankfully i'm not quite as daft and understand that even if you could just "up and go" that coining it in isn't going to just happen over night. I should imagine public liability insurance would be needed for a start, perhaps a license of sorts for dismantling?

Anybody in the business and perhaps chuck me a few pointers to go back to him with.

I don't mind throwing some spare cash at the idea, but i'd like it to be at least "sound" before i do.

Thanks

mike

[singlecoil]

Yes, you certainly wouldn't be allowed to start dismantling cars without meeting a number of strict regulations. But, if the idea still appeals, then my advice would be to specialise in certain makes and models, take the popular bits off, and then weigh the rest in with a licensed breaker. I've done this several times with cars that I wanted parts for projects from, had all the running gear and anything else sellable off them, then trailered them to the breaker no problem at all.

[valverguy]

I think, that this is exactly what he wants to do. I personally have done similar with projects, especially old vauxhalls and renaults.

Assuming that doing the above is legal. Is there still money to be made (as in could my friend live of this)?

[singlecoil]

valverguy said:

Assuming that doing the above is legal. Is there still money to be made (as in could my friend live of this)?

Check the prices on 'completed items' on ebay for the parts he is thinking of doing, and let him judge for himself.

[valverguy]

Sounds simple enough, however i doubt ebay would be the "main" area of sales

Thanks for the advice

ATB

Mike

[insurance_jon]

For a new start up in ELV's PL insurance kicks off at around £3900 pa

As a tip one guy I know sticks to breaking early a8's and other ally bodied cars as once the parts have gone, there is about 1500 from weighing the shell in

The hard bit is getting te environmental licence

[V8TVR]

Very difficult to get planning and meet the criteria required by the EA, for existing ELV Breakers then there is money to be made, but for a new start up i would say very difficult to make it pay, just IMHO and i own a scrap yard

[valverguy]

Breaking cars for parts and then taking "the rest" of whats left to a scrap yard, Is that all perfectly above board? Rather than actually operating a full blown scrap/dismantling yard?

[bertieg]

the trouble is the most money is made from top spec/desirable models, and the initial cost often outweighs the returns

i've broken a couple of my own personal motorbikes previously after an insurance write off, and i've definitely made money from it, but not as much as the market value of the vehicle

[minimoog]

valverguy said:

Breaking cars for parts and then taking "the rest" of whats left to a scrap yard, Is that all perfectly above board? Rather than actually operating a full blown scrap/dismantling yard?

If you're dismantling vehicles to any extent you need a Motor Vehicle Dismantler's permit from the Environment Agency = £££

Or don't bother and get prosecuted when they find out.

[valverguy]

As i understand it, the vehicles he would be interested in breaking, would be mot failures/cat b or above cars, projects/general cheap cars and auction cars.

Nothing to top end to start with at least, he is looking to build up a pot by working friday/saturday/sunday and working his usual week mon-thur.

Thus not needing financial support from the venture right off and building a "pot" so to speak.

[valverguy]

minimoog said:

If you're dismantling vehicles to any extent you need a Motor Vehicle Dismantler's permit from the Environment Agency = £££

Or don't bother and get prosecuted when they find out.

Last year i dismantled 3 cars, i stripped them sold parts on, and scrapped the shells, is this technically illegal?

[insurance_jon]

Yes

[Thom987]

You wont be able to buy Cat B breakers unless you have the required licences/permits.

[karona]

The yard near where I used to live made his fortune from melting down the engines in a massive carousel which rotated the engines over a burner, and he cast ingots from the aluminium that poured out the bottom. The parts side of it, and anything from recycling the shells, was a bonus.

He regularly said that dealing with the public was a real PITA he could happily have lived without.

[valverguy]

Thanks for the advice, had no idea that stripping your own car for parts was illegal of sorts. Of to do some reading

ATB

MIke

[spikeyhead]

The easiest way of selling is via ebay, but advertise a single wheelnut for £1 and state all other parts are available.

However don't try and make a living commercially from breaking cars, the environmental side of things is a nightmare.

[simoncrowe]

insurance_jon said:

As a tip one guy I know sticks to breaking early a8's and other ally bodied cars as once the parts have gone, there is about 1500 from weighing the shell in

Is there really £1500 of aluminium in an a8 shell? I thought the price of aluminium at the moment was about £6-700 per tonne? This would have to be over 2 tonne in the shell?

[simoncrowe]

Anybody know the weight of an a8 shell or how much you would get for weighing one in including all body panels?

[sideways sid]

I would guess that selling parts that are expensive new would be the way forward. Perhaps specialise in breaking crashed 911s or something.