Powersports consignment seller

Owners who want to sell but lack the time or confidence to deal with buyers. Buyers pay the sale price, and you take a fee or commission from the owner.

A commission or flat fee on each sale, with possible extras for detailing, photography and arranging transport.

• Online listings and good photography
• Clear communication and negotiating
• Knowing what machines are worth
• Organising paperwork and viewings

• Dealer licensing rules for consignment sales differ by province, so check before you advertise
• Make sure the paperwork clearly shows who owns the unit, who is liable, and what happens if it is damaged or stolen
• Insurance for units in your care and for test rides, and check what the owner's insurance covers
• Check for liens and clear ownership before listing
• Seasonality of demand, and sales tax rules that may apply to your fees

Estimates suggest startup costs are typically around $3,000 to $15,000, depending on your advertising, equipment and any storage space you rent. Because owners keep ownership until a sale, you usually need little stock of your own.

Monthly revenue is typically estimated around $2,000 to $10,000, depending on how many units you sell and your fee or commission. Demand is seasonal, so check how you will manage quieter months.

Check dealer licensing rules for consignment sales in your province before you advertise. Make sure paperwork shows who owns the unit, who is liable and what happens if it is damaged or stolen. Check for liens, and check insurance for units in your care and for test rides.