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Wed Feb 27, 2013 5:05 pm

I have an opportunity to take over a air cooled junk yard, in California. I was wondering your alls take on whether this would be a wise investment to do. I'd like the stock new parts as well as old stock.

Wed Feb 27, 2013 5:19 pm

Depends on where you are and if you are willing to join the technoligical age. I know of a shop in merced that's actually been decreasing in profit due to not having a website and folks just going online instead of coming into the shop. It's truly an awesome feeling to do what you love but at the same time, you have to be able to pay bills and live.

Wed Feb 27, 2013 6:27 pm

Agreed with above.
It's going to be a pain, but having a strong website / online presense with plenty of pics is essential, along with good communication and customer service.

Wed Feb 27, 2013 6:31 pm

Yeah I would want to make it web based and store front. I'm fairly tech savvy and know a lot of people that are more tech savvy then me. It's going to be in the central valley. An there's a lot of locales around that are into VW

Wed Feb 27, 2013 6:36 pm

Where in the Central Valley are you? Fresno, Madera, Bakersfield, Clovis, Modesto, Turlock, Merced, Ripon, Manteca, Stockton, Patterson, etc? There are lots of towns in the central valley and depending on the town will determine how well you will do in the local community. Mind you, I am originally from Denair, CA and used to work at Pro Volks in Merced, CA. So I know quite a few of the vw shops and their owners.

Wed Feb 27, 2013 6:39 pm

In fresno

Wed Feb 27, 2013 6:43 pm

You definately have a larger customer base down there and for the most part, not as broke. Local businesses get hit hardest when the local economy is in the shitter. So the larger community equals a wider customer base which equals better chances of not losing money. And knowing that there are not many shops in Fresno already is definately a plus. I wish you the best of luck in your endeavors.

Wed Feb 27, 2013 6:59 pm

There is about 15 vw's within walking distance of my house. I would like to bring the shop to the web an the property is zoned for auto recycling. It currently has a junkyard on it. So the asking price includes the land, cars, and buildings there's maybe 35 cars and buses there and a lot of good parts in the building.

Wed Feb 27, 2013 7:14 pm

The biggest issue with old junk yards is soil contamination. If it is contaminated then it will be incredibly difficult/expensive to do.

Wed Feb 27, 2013 7:26 pm

Yes that is true about the soil but I would like to keep the junkyard part as is. Still doing my research but would like to have it more as a parts new and used supplier and not really be a shop for working on others cars

Wed Feb 27, 2013 7:40 pm

Being a parts supplier makes things a bit easier than a repair shop. Repair shops fall under different city ordinances and different state laws. You don't have to have near as many business licenses. But, as a parts supplier, you do not have to have a repair license to build engines. So if you also wanted to do that, you can. Same with front beams, other suspension parts, and transaxles. It's a good bit if you still want to do some mechanical.

Wed Feb 27, 2013 7:55 pm

Yeah that's what I had in mind. Some mechanical but only on stuff for sale.

Wed Feb 27, 2013 8:36 pm

I learned so much from working with Bert as far as the business side went. There's a lot more to it then most would understand and it's tough work but well worth it in the end. Again, I wish you the best and hope that others can chime in with more/better advice than I.

Wed Feb 27, 2013 9:16 pm

I've dealt with a Benz guy who really knows his stuff, and when I call for parts he asks what am I doing, and can nail down all the bitty things people forget or dont think about doing while they have it apart.

If your customer service includes the ability to suggest he odds and ends needed for doing a job, it should go well.

Wed Feb 27, 2013 9:26 pm

laughtybus wrote: Yes that is true about the soil but I would like to keep the junkyard part as is. Still doing my research but would like to have it more as a parts new and used supplier and not really be a shop for working on others cars

Right, but eventually the EPA and/or the State of California will knock on your door and ask what you plan to do about the contamination. What will you do then? Who will you sell it to (and eventually you'll want to sell it) if they will need to do a clean-up? You're taking on a lot of liability.

It's a junkyard now, but what was there in the 30's, 40's, 50's and 60's? Is there asbestos in the ground, PCB's, abandoned underground tanks?

You would be nuts to put your name on anything without a site assessment, probably at least a Phase II Assessment.

Wed Feb 27, 2013 10:52 pm

coad wrote: laughtybus wrote: Yes that is true about the soil but I would like to keep the junkyard part as is. Still doing my research but would like to have it more as a parts new and used supplier and not really be a shop for working on others cars

Right, but eventually the EPA and/or the State of California will knock on your door and ask what you plan to do about the contamination. What will you do then? Who will you sell it to (and eventually you'll want to sell it) if they will need to do a clean-up? You're taking on a lot of liability.

It's a junkyard now, but what was there in the 30's, 40's, 50's and 60's? Is there asbestos in the ground, PCB's, abandoned underground tanks?

You would be nuts to put your name on anything without a site assessment, probably at least a Phase II Assessment.

That is true I'm still looking into this idea though I like the thought I am not 100% onboard I was Allways taught in business to do your homework.

Thu Feb 28, 2013 8:16 am

My buddy from high school owns a wrecking yard in Redding and does real well with it. I have 14 cars on my 5 acres and do a steady monthly parts/storage/towing business with them for the last 5 years. If you can't find enough VW's take in other makes to store or part out.

Thu Feb 28, 2013 8:40 am

I support your endevor. Homework and then more homework, research.
Cali EPA regulation yada yada.

Best of luck.

Sun Mar 10, 2013 5:17 am

Well I would like to keep it Vw specific I have a lot of experience in manufacturing and fabrication. Would like to make some of the hard to find items. I am proficient in computer aided drafting. An went to school for Automotive engineering and fabrication. and I'm a firm believer and quality over quantity at a fair price I'm for making a profit but I'm not for rapeing the customer.

Sun Mar 10, 2013 9:01 am

Your biggest liability will be from the EPA. I would not buy the land with any possibility of contamination. You could be looking at hundreds of thousands of dollars for clean-up. Lease the land and let somebody else worry about it.

The peak of the VW hobby is gone and declining. Be fully prepared to diversify into other brands of cars to make a profitable income.