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vintage salvage yard


billstewart

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This would be a difficult deal to get right, I expect. It would be easy to pay way too much because although the stock would be worth a lot on paper, turning a profit on the whole deal would involve some pretty high overheads. It will be interesting to see what bids are made. One possibility is the development value of the land. One of the main reasons why many old yards have disappeared over here is from redevelopment. It would depend on how close to a centre of population it is for one thing. Do they say how much land there is?

What do you guys think would be a workable deal? No harm in armchair speculation. I say $500,000

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Since we're armchairing it, I'll disagree with the $500,000.

Let's say you buy it for that amount. Disregarding the lease payment, you'd need to sell $20,000 worth of goods per month, for two years, just to almost break even. That's also not counting expenses, salary for your time, paying help, and so forth.

As a basis, let's start with the 200 cars. Let's say 150 of them are scrap only, at $300 per car, that's $45,000, minus expenses to crush.

Let's say that 50 of the cars are sellable. 2 Cords, probably worth $10K each if that, and let's average $2K for the remainder. So, $20K plus $96K, $116K

We're at $161K gross. Let's throw in another $40K for misc parts sales. $201K gross receipts, for two years work. Take out lease payments, your salary, expenses.....

If you paid $50,000 for the yard as it sits, you'd be hard pressed to come out of it with any money in two years. You might make some money if you do it quick, sell what you can in the first 6 months and crush the rest for scrap.

I hate to see cars crushed, just trying to look at it realistically as a money making proposition, and it's hard to make the numbers work....particularly at $448K...

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Yes Trimacar. If I had bothered to read the blurb it would have become aparent that it is not a yard that is being sold; merely the stock with a 2 year lease to enable the land to be cleared. I have therefore completely revised my idea about the deal on offer. All I can see is a lot of hard work and high overheads with not much chance of a profit for two years effort. It will possibly sell to someone with an existing yard who already has the staff and equipment to extract the most from the sale of cars and spares. I wonder if others here have a similar figure to your $50,000 top whack. Interesting armchair topic.

Ray.

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It's way too much. Assuming you even got it for the starting bid. You have 2 years to clear the land of all the vehicles and parts! And put them where? Like Mr. White says only an existing yard would be interested because they MIGHT have a chance of pulling it off as they have the resources to move the stuff. To me it almost looks like they have put the retail price in situ on it where it should at least have the wholesale cost on it. And even at that you would not want to crush much but try to sell the bodies to rodders. It's actual worth would depend on several factors. How close can another lot be found to store the stuff? How do we transport all that stuff? You would have to own the float and loader. Do we own the new storage land or do we have to rent the land? At what cost? Can we get clearance from the local municipality to put a wrecking yard in it's locale? It's a case of NIMBY with wrecking yards. They are considered an eye sore and are thought to reduce the local property values. A local one to me here in Ontario just had to spend several thousands $ putting up an 8' privacy fence around 3 sides of his yard.

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