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How to Start an Auto Removal Business

A broken auto removal business has the potential to be lucrative. This is because every year more than 25 million tons of material is recycled from automobiles.

There are plenty of worn-down, unwanted vehicles out there that people want to get off their hands. You can turn around and make a profit from old cars’ tires, windshields, batteries, and aluminum parts.

In addition to making a profit, owners of these types of businesses also make a difference in the world. That is, they make the world a safer place by removing sub-par vehicles from the roads.

So if you’ve always wanted to be your own boss and you have a knack for automobiles, consider starting an auto removal business. Here we provide a guide on how to get started.

What to Invest in When You’re Starting an Auto Removal Business

In addition to having good sense and knowledge about cars and how they work, you’ll need to invest in the following resources to get started with your auto removal business.

A Garage Is Essential to an Auto Removal Business

You’ll need to find a spot to store the cars and car parts you get from clients. Figure out if you should rent or buy a space, depending on where you expect to base your company in the future.

Stock Your Garage with Essential Tools

Be sure to stock your garage with the essential tools. While we can’t possibly cover all of the necessary tools, here are a few basic ones you’ll need in the beginning:

  • Rubber mallet
  • Set of screwdrivers
  • Set of ratchet wrenches
  • Battery and jumper cables
  • An engine-pulling A-frame
  • Set of pliers

You’ll Definitely Need a Tow Truck

You’ll need a way to transport broken-down cars safely and efficiently. Therefore, you’ll definitely need a reliable tow truck to fulfill this task.

A tow truck is one of the heftier expenses of owning an auto removal business. Prices start at around $60,000 for a two-car carrier. Find one that meets your budget and fits into business plan.

There are different types of tow trucks available. Therefore, make sure to find one that’s suited for your business. This will likely be a flatbed tow truck that’s specifically designed for transporting vehicles that have been in accidents or can’t start properly.

Also, unless you want to drive the tow truck yourself, consider hiring a qualified driver.

A Call Center Will Make Your Life Easier

Make arrangements with a call center that’s equipped with friendly and professional receptionists. They’ll handle calls from customers and arrange pickups for the vehicles you’re purchasing.

Hire a Great Mechanic

Even if you’re knowledgeable about cars, you’ll want someone by your side to help you through any problems you can’t figure out on your own. An experienced mechanic can help make repairs and determine price points of certain parts.

Set up a Website for Your Auto Removal Business

If you want clients to find your business, you’ll have to establish a solid online presence. This includes a website and active social media accounts. Additionally, hire professional SEO services to help clients more easily find you.


Create a Business Plan

Here are some considerations that will help you develop a business plan:

  • Determine what the focus will be for your auto removal business.
    Will you mainly buy old cars and sell the parts? Or will you buy old cars and repair them for resale?
  • Should you open a franchise?
    Opening a franchise will still provide you with the excitement of owning a company. Plus, you’ll have an established strategy to follow.
  • Study the competition.
    Learn everything you can about competing auto removal businesses in your area. What sets them apart and makes them successful? Implement some of their best practices into the business plan for your business.

Become Your Own Boss with an Auto Removal Business

The auto removal industry is strong. This is because all across the world, automobiles are the most recycled consumer product. So take advantage of this thriving industry and start an auto removal business of your own.