A dagger found in a vehicle yard (7)

I believe the answer is:

garaged

I'm a little stuck... Click here to teach me more about this clue!

'in a vehicle yard' is the definition.
I can't tell whether this definition defines the answer.

'a dagger' is the wordplay.
'a dagger' anagrams to 'GARAGED'.
But, I am not clear how the anagram is indicated.

'found' acts as a link.

Can you help me to learn more?

I've seen this clue in the Sydney Morning Herald.

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