BREAKING CARS AND MAKING MONEY

Discussion in 'General Business Forum' started by Multi-store, Aug 31, 2014.

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  1. Multi-store

    Multi-store UKBF Enthusiast Free Member

    529 96
    Hi all - been away from the site for around a year, head down working hard. New website looks great, very modern.

    Anyway i am thinking of starting a little side project, i've noticed a car for sale this week for around £300, a little sporty number, high mileage, no tax / no mot basically as good as a non runner. I actually own a similar version of the same car but newer, and certain parts of the car are relatively well sought after. I reckon the Alloys on this car are worth around £150 alone.

    My question is if i were to buy the car, and try to find others in a similar state, can i break them up and sell the parts? Im not talking mechanical parts really, as im no mechanic, but obviously the Exhaust, tyres, wheels, seats, stereo etc - Then just scrap what's left. Can you still get £100 for a scrapped car, even if you have taken it to pieces? are there any rules or regs on this kind of thing?

    I reckon on basic calculations (if i can get £100 for the shell that's left over) i can probobly turn the £300 car into £500. not a huge earner, but its as much a hobby as it is a money spinner.

    J
     
    Posted: Aug 31, 2014 By: Multi-store Member since: Sep 19, 2011
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  2. IanG

    IanG UKBF Enthusiast Free Member

    964 203
    So long as you've not overlooked anything obvious like getting the car to your premises with no tax and test, getting the shell to the scrappy with no wheels on it, advertising the stuff, posting the stuff and doing it all without any tools.

    Does depend what it is but a standard second-hand exhaust isn't worth a carrot and neither are most interiors.

    Wheels are worth money if they're all round - or if you don't mind selling bent ones. Which on a high mileage car they've a high likelihood of being.

    If you've done the homework and you know what's going to sell then yes, your premise is sound. However it all needs photographing and packing, 10% of your income you won't even see after fees, another 20-25% you'll be giving to couriers and the PO and you're taxed on the rest. You've only got one of everything so returns come straight back out of the bank account and you've got to have somewhere to work and store the bits.

    I'm not telling you not to do it - it is my sole income so I would suggest its possible - but don't get drawn in by a headline figure of turning a £300 car in to £500 of turnover, that isn't very profitable at all after everything you're currently overlooking.
     
    Posted: Aug 31, 2014 By: IanG Member since: May 8, 2011
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  3. Multi-store

    Multi-store UKBF Enthusiast Free Member

    529 96

    Thanks for your reply. The headline figure £300 to £500 was just an estimate really, but sets a reasonable benchmark to make it worth while. Like i said im not doing this to provide an income, more so to make a little extra cash and also develop a new skill, and a hobby. I enjoy working out doors (spend alot of weekend time in the garden at present) and could see this being the same kind of thing. Obviously when i look to purchase a vehicle i will need to check that the main parts of value, ie the alloys are in decent condition. With regards to moving the parts on, large pieces will probably need to be collection only, in an effort to reduce overheads i will use platforms such as gumtree and the local paper which both allow me to advertise 1-20 items a month free of charge. Interested that you said the interior and exhaust have no value. I Guess i really need to sit down and figure our everything i can remove, and work out its typical value. Of course there will be a cost involved in moving the remaining scrap out to a scrapyard, but i wondered if the scrappie would collect for me (locally) as part of the deal, obviously this would mean getting less for the scrap but i would expect it to be the most cost effective way of disposal. Ultimately, for £300 i can have a good go and if i bring even, and have some fun in the process then i dont mind. But it sounds like i need to do some proper planning before i spend the cash, Ideally i dont want the vehicle sat on my driveway for too long. Storing the after-parts is no problem as i have a big shed, but i dont have a garage so i'd need to move on the shell pretty quickly. The vehicle I am looking at does have a decent following so that should also help me move on the parts.

    As you do this FT do you know if scrappies pay for the shell of a vehicle still? if so roughly how much?
     
    Posted: Sep 1, 2014 By: Multi-store Member since: Sep 19, 2011
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  4. vvaannmmaann

    vvaannmmaann UKBF Legend Free Member

    13,112 3,369
    Sadly it is not quite as straightforward as you may think.
    You will also need to consider local government/planning.Disposal of oil and fluids etc etc.
    I took the following from the Piston Heads forum.

    "There are two main issues:
    The Land:
    It will depend on what designation the land already has - you may need a change of use (breakers are B2 I think)
    http://www.planningportal.gov.uk/permission/common...

    Law and process will vary if you are in England vs in Scotland.

    You can see a typical one here: http://sutton.moderngov.co.uk/mgConvert2PDF.aspx?I...
    You will need some significant time in hand as local residents and business need time to review and lodge issues/support as appropriate. Don't just setup on a piece of land. Retrospective planning permission is hard, and there are some (very) weighty fines whenever fuel/liquids/etc waste is involved.

    The Licence

    Oh, and the licence is critical as well. Operating without registration is a prosecutable offence....
    Good guide here:
    http://www.eastleigh.gov.uk/waste-recycling-enviro..."

    So be prepared for a long and winding road.
     
    Posted: Sep 1, 2014 By: vvaannmmaann Member since: Nov 6, 2007
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  5. Vectis

    Vectis UKBF Enthusiast Free Member

    783 203
    Even if your projection of turning £300 into £500 of parts is viable, how long will it take to make that £200? And where will you be storing the parts - or will you leave them on the vehicle and remove parts as and when?

    There must be a lot easier ways to make £200.
     
    Posted: Sep 1, 2014 By: Vectis Member since: Jun 10, 2012
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  6. Multi-store

    Multi-store UKBF Enthusiast Free Member

    529 96
    Sorry you are missing the point. I am not doing this to generate an income, I am looking to do this as a hobby, something I can do at the weekends whilst listening to the footy on the radio, make a change from my normal routine of tending the garden. The little extra cash i could make is a bonus, not the main reason for doing it.
     
    Posted: Sep 1, 2014 By: Multi-store Member since: Sep 19, 2011
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  7. Multi-store

    Multi-store UKBF Enthusiast Free Member

    529 96
    Sounds like this is something i cant just pick up and have a go at then. I am not looking to "set up shop" or run this as a business, just a side project for a bit of fun. I should not need to dispose of any fluids or oils as I was not planning to remove anything mechanical other the bits i could easily get my hands on ( I have no experience as a mechanic). Its a shame Red Tape seems to block people from doing anything constructive with their free time.
     
    Posted: Sep 1, 2014 By: Multi-store Member since: Sep 19, 2011
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  8. MatthewRJones

    MatthewRJones UKBF Newcomer Full Member - Verified Business

    64 18
    There's a TV show on BBC called Scrappers it's pretty good.
     
    Posted: Sep 1, 2014 By: MatthewRJones Member since: Jun 21, 2014
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  9. AllUpHere

    AllUpHere UKBF Ace Free Member

    2,752 970
    I don't think you are going to be very popular with the neighbours if you are planning on doing this on your driveway. Nothing looks worse or drives people to complain to the authorities quicker than a scrap car half taken apart on a driveway.
     
    Posted: Sep 1, 2014 By: AllUpHere Member since: Jun 30, 2014
    #9
  10. 14Steve14

    14Steve14 UKBF Enthusiast Free Member

    696 114
    How can you remove items for sale if you know nothing about removing them and the dangers and consequences of doing so. By the time you have annoyed the neighbours, spent lots of money advertising bits no one wants, it may not earn you any money to cover your costs. Removing and sorting the different metals may get you some return, but not much. Generally scrap body shells less openings fetch no money at all as they are just crushed with no additional return for the scrappy.

    Now if you had a look through some specialist kit and custom car mags and found the bits that people want to build these types of cars, you may get somewhere. A lot of popular classic car parts are readily available already removed from scrap cars. Taken off by people that know what they are doing and are able to check that the items are still serviceable.

    Think of something else to keep you busy.
     
    Posted: Sep 1, 2014 By: 14Steve14 Member since: May 18, 2010
    #10
  11. IanG

    IanG UKBF Enthusiast Free Member

    964 203
    The scrap is worth money, around £100/ton just now for shells - but you've got to get it there to get that.

    400kg on a bare shell on your drive way, you're going to be paying someone to make that journey.
     
    Posted: Sep 1, 2014 By: IanG Member since: May 8, 2011
    #11
  12. SamStones

    SamStones UKBF Enthusiast Free Member

    1,042 134
    The guy next door to my industrial unit used to do this for a living but he basically got shut down as the council said he needed to become a registered end of life centre and it cost thousands for the course then thousands for application / annual fees etc. It was a couple of years back so I don't remember all the details but do look into it properly!
     
    Posted: Sep 2, 2014 By: SamStones Member since: Mar 1, 2010
    #12
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