Small-lot trailer dealership

Contractors, farms, small businesses, racers and families buying trailers for work, hauling or recreation.

Margin on new and used trailer sales, plus accessories, hitches and basic servicing. Some dealers also offer financing through a partner lender.

• Sales and customer service
• Inventory buying and pricing
• Basic trailer mechanical knowledge
• Bookkeeping and sales paperwork

• Provincial dealer licensing, bonding and premises standards, which vary widely, so check with your regulator and municipality
• Inventory ties up a lot of cash, so avoid overstocking; a realistic start needs funds for stock, lot deposit, bonding, insurance and signage
• Garage liability and commercial general liability insurance, plus coverage for stock on the lot
• Sales tax (GST/HST/PST) rules on new and used trailer sales, check with the CRA and your province
• Seasonal demand, with winter often slower, and warranty or return obligations to customers

Estimates suggest startup costs typically around $120,000 to $400,000, depending on your stock, lot deposit, bonding, insurance and signage. Inventory ties up a lot of cash, so avoid overstocking.

Monthly revenue is typically estimated at around $10,000 to $50,000, depending on your mix of new and used trailers, pricing and sales volume. Winter is often slower, so plan cash flow around seasonal demand.

Check provincial dealer licensing, bonding and premises standards with your regulator and municipality. Also check garage and commercial liability insurance, coverage for stock on the lot, sales tax rules (GST/HST/PST), and warranty or return obligations.