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Salvage License - Can you make money?

Posted on 2006-11-29
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I was wondering if anybody knows if this is a good way to make some money by getting a salvage license, and go to the salvage yard to bid on cars and resell them.
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Question by:Joe
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7 Comments
 
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Expert Comment

by:lherrou
ID: 18037793
JoeZ430,

Different states handle salvage vehicles slightly differently, but in general you cannot re-sell salvaged vehicles to consumers, unless you plan on doing the necessary repairs and getting the vehicle inspected by the state's special salvage inspectors. The reason for this is that most states will not allow a consumer to apply for a license tag for a salvage vehicle, and will only allow specially licensed mechanics to work on the vehicle prior to the inspection for conversion from salvage to regular title.

That leaves as markets either salvage yards (who will be sending their own agents to the auctions), mechanics who can work on salvaged vehicles (possible), or shipping overseas (requires export licenses, etc).

So, unless you have some experience and contacts in this area, I would say, probably not.

Cheers,
LHerrou

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by:Joe
ID: 18038038
So any vehicle repaired from a salvage yard needs to be inspected?
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by:lherrou
ID: 18038769
I don't know where you are located, but at least in the US, this is true - if it has a salvage title, it must be repaired "to a comparable level, etc", usually by someone licensed to make those repairs, and then be inspected by a special salvage inspector prior to being issued a regular title (which is required to obtain license tags).

And there are laws about requiring a salvage title on salvage vehicles - the yard can't sell it if they or you don't title it properly as part of the transaction.
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Assisted Solution

by:jar0000
jar0000 earned 100 total points
ID: 18038924
If you want to part out cars go for a salvage license if you want to resale cars get a dealer’s license.
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Author Comment

by:Joe
ID: 18039054
I am USA,Ohio
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lherrou earned 400 total points
ID: 18039152
From http://bmv.ohio.gov:
What is a motor vehicle salvage auction?
"Any person who, on his own behalf, or as an agent for a third party, engages in business for the purpose of auctioning salvage motor vehicles to motor vehicle salvage dealers."

What is a motor vehicle salvage dealer?
"Any person who engages in business primarily for the purpose of selling salvage motor vehicle parts, and secondarily for the purpose of selling salvage motor vehicles or manufacturing or selling a product of gradable scrap metal."

What are the physical requirements for a motor vehicle salvage dealer's place of business?
"A motor vehicle salvage dealer, salvage pool, or salvage auction must have and maintain the following minimum physical characteristics to obtain a license:
    *      A minimum area of 50,000 square feet.
    *      The area must be shielded by a fence between six and ten feet tall that shields the premises from ordinary view. A living hedge of equal or greater height and sufficient density to prevent view of the premises may be substituted for the fence. All inventory of the business must be stored behind the fence or enclosure to promote and preserve a positive visual impact of the salvage yard's business on the surrounding neighborhood.
    *      An office to conduct business, in a building of at least 225 square feet. The office must have an area devoted to sales transactions, an area with a parts counter, and an office to maintain records.
    *      A permanent sign in the exact business name as it appears on the application, with letters of at least six (6) inches high. The business sign shall be prominently displayed at or near the entrance of the facility.
    *      Regular business hours posted in plain view.
    *      The facility shall be open and attended by someone who may reasonably assist a retail customer during the posted business hours."
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by:Joe
ID: 18039369
Thanks!
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