Online used car trader (a few cars at a time)

Private buyers looking for affordable, well-presented cars, often first car buyers, families and people wanting a second car.

You earn the gap between what you pay (plus prep, registration and advertising costs) and the sale price. Revenue here means total sales, which at around one to three cars a month on part-time hours is modest. Your actual profit is only a margin on each car and can be thin or negative on a bad buy.

• Knowing car values and common faults
• Negotiating buying and selling
• Good photos and honest listings
• Paperwork and record keeping

• Licensing: most states require a motor car trader or dealer licence once you sell above a certain level, so check your state's rules before buying stock
• Run a PPSR check on every car for money owing, stolen or written-off status
• Australian Consumer Law and any state warranty rules apply to sales, so check what you must disclose and guarantee
• Roadworthy or safety certificate rules differ by state, so check who needs to provide one
• Check whether storing and selling cars from home needs council approval
• Cash tied up in unsold stock, and the risk of buying a car with hidden faults
• Check GST, stamp duty and ABN requirements with your accountant or the ATO

Startup costs are typically around $15,000 to $50,000, depending on how many cars you buy, your prep costs and where you store them. These are estimates, and cash can be tied up in unsold stock.

Monthly revenue is typically estimated at around $6,000 to $30,000, depending on how many cars you sell and their prices. Revenue is not profit, and hidden faults in a car can cut into your returns.

Check your state's dealer or trader licence rules before buying stock, run a PPSR check on every car, and check Australian Consumer Law, roadworthy rules, council approval for home storage, and GST, stamp duty and ABN requirements.