Used powersports dealer (small lot)

Local riders, hunters, farmers, cottage owners and families looking for a more affordable machine than a new one.

The margin between what you pay and what you sell for, plus fees for paperwork, accessories and optional trade-ins.

• Knowing machines and spotting problems before you buy
• Negotiating and selling
• Basic mechanical reconditioning
• Record keeping and paperwork

• Dealer registration or licensing rules vary by province, so check your provincial regulator and your municipality's zoning
• Check liens before buying (for example through your province's personal property registry) so you do not sell a unit with money owed on it
• Dealer garage and commercial general liability insurance, plus coverage for stock on the lot
• Seasonality: quads and bikes slow in winter, snowmobiles slow in summer, so plan cash flow
• Tied-up cash in unsold inventory; GST/HST and provincial sales tax rules on used vehicles need checking with an accountant

Estimates suggest startup costs are typically around $25,000 to $100,000, depending on your lot, stock and insurance. Unsold inventory ties up cash, so check how much stock you can afford to carry.

Monthly revenue is typically estimated around $10,000 to $50,000, depending on how many units you sell and at what price. Quads and bikes slow in winter and snowmobiles slow in summer, so plan your cash flow.

Check dealer registration or licensing rules with your provincial regulator, and zoning with your municipality. Check for liens before buying, such as through your province's personal property registry. Also check dealer garage and liability insurance, and sales tax rules on used vehicles with an accountant.