Discover Profitable Automotive Side Hustles

Discover Profitable Automotive Side Hustles

Table of Contents:

  1. Introduction
  2. Drop Shipping 2.1 Pros of Drop Shipping 2.2 Cons of Drop Shipping
  3. Junkyard Part Picking 3.1 Pros of Junkyard Part Picking 3.2 Cons of Junkyard Part Picking
  4. Dismantling 4.1 Pros of Dismantling 4.2 Cons of Dismantling
  5. Consignment 5.1 Pros of Consignment 5.2 Cons of Consignment
  6. Conclusion



In today's era of digital entrepreneurship, there are numerous opportunities to earn a side income in the automotive industry. Whether you're a car enthusiast or simply looking to make some extra cash, there are several types of automotive side hustles that you can pursue online. This article aims to compare and analyze four different business models: Drop Shipping, Junkyard Part Picking, Dismantling, and Consignment. We will explore the pros and cons of each model and provide insights based on personal experiences and industry knowledge.

Drop Shipping

Drop Shipping is a unique business model where sellers directly sell new aftermarket parts from manufacturers without holding any inventory. The seller lists the products on their online store, and when an order is placed, the manufacturer ships the item directly to the customer.

Pros of Drop Shipping

  • Minimal overhead costs: With no need to hold inventory, there are no storage or warehousing expenses.
  • Scalability: Sellers can create as many listings as they want, allowing for easy business growth.
  • No packing or shipping responsibilities: The manufacturer handles all packaging and shipping tasks.
  • Higher quality products: Selling new parts reduces the chances of returns or dealing with damaged items.

Cons of Drop Shipping

  • Intense competition: As Drop Shipping is an easily accessible business model, competition can be fierce in saturated markets.
  • Steep learning curve: Mastering Drop Shipping requires extensive knowledge and education due to the complexity of the model.
  • Thin profit margins: Depending on the manufacturer and the type of parts sold, profit margins can be minimal, necessitating high sales volumes to make substantial profits.
  • Difficulty finding reliable suppliers: Finding reputable manufacturers can be challenging, especially for new sellers.

Junkyard Part Picking

Junkyard Part Picking involves searching for valuable parts in salvage or junkyards, purchasing them, and reselling them individually. It is a business model that attracts those who enjoy the thrill of searching for hidden treasures.

Pros of Junkyard Part Picking

  • Low initial investment: Starting this business requires minimal upfront costs and can be a cost-effective way to acquire inventory.
  • Potential for good deals: By building relationships with salvage yards, you can find quality parts at affordable prices.
  • Opportunity for a steady supply of inventory: If you establish reliable connections with reputable yards, you can consistently source profitable parts.

Cons of Junkyard Part Picking

  • Lack of scalability: Due to the limited availability of valuable parts in junkyards, it is challenging to scale this type of business.
  • Time-consuming: Searching through junkyards for quality parts can be a time-intensive process with uncertain outcomes.
  • Limited profit margins: Unless you stumble upon a gold mine or specialize in high-value parts, the slim profit margins may not make this business highly lucrative.
  • Risk of purchasing unsaleable parts: Buying parts upfront means taking the risk of parts not selling, resulting in potential losses.


Dismantling involves purchasing wrecked cars from salvage auctions and dismantling them for parts. These parts are then sold individually on platforms such as eBay.

Pros of Dismantling

  • High profit potential: When successfully executed, dismantling can be highly profitable, especially when valuable parts are sourced from wrecked cars.
  • Scalability: With the opportunity to expand into a larger operation, dismantling can become a full-time, profitable business.
  • Enjoyable and exciting: Dismantling wrecked cars and discovering valuable parts can be a fun and fulfilling process.

Cons of Dismantling

  • Capital requirement: Adequate capital is necessary to purchase cars from salvage auctions and cover associated costs.
  • Risk and uncertainty: Acquiring cars from auctions poses risks, such as hidden engine damage or other costly issues that may reduce profitability.
  • Intense competition: The dismantling business has become increasingly competitive, making it challenging to secure profitable deals.
  • Time-consuming and labor-intensive: Dismantling cars and processing parts can be time-consuming and physically demanding.


Consignment involves partnering with local automotive and repair shops to sell their spare parts on various online platforms.

Pros of Consignment

  • Minimal overhead costs: Consignment does not require significant upfront investment as parts are acquired on a commission basis.
  • Scalability: As more partnerships are formed with different shops, there is ample opportunity to expand the consignment business.
  • Diverse income sources: Beyond selling car parts, consignment can lead to additional avenues of income, such as listing vehicles for sale on behalf of repair shops.

Cons of Consignment

  • Repayment complications: Calculating and keeping track of the commission owed to each shop can be a time-consuming and sometimes challenging task.
  • Reliance on shop inventory: Having an unreliable supply of parts can be a drawback, especially when shops are unable to provide sufficient inventory.
  • Organizational difficulties: Properly storing and cataloging parts from various shops can present challenges in managing inventory effectively.


Each of these four automotive side hustles offers unique benefits and challenges. Drop Shipping provides low overhead and scalability, while Junkyard Part Picking offers the thrill of hunting for valuable parts. Dismantling can be highly profitable but requires significant capital and expertise, and Consignment provides an opportunity to leverage existing partnerships with local shops. Ultimately, the choice of business model should align with individual preferences, skills, resources, and financial goals. With the right approach and dedication, any of these side hustles can lead to success in the automotive industry.