Online-first used car dealer

Private buyers looking for an affordable used car and often comparing local online listings.

Profit is the gap between what you pay plus prep and repair costs and the selling price, so cash is tied up in each car until it sells. Revenue figures are sale prices, not profit, and with only 2 or 3 cars in stock you might sell just a few a month.

• Judging a vehicle's condition and value
• Negotiating with sellers and buyers
• Taking good photos and writing honest listings
• Careful paperwork

• A dealer licence is generally needed to sell vehicles regularly, and selling without one (sometimes called curbsiding) may be illegal, so check your provincial regulator
• Some provinces require a dealer bond or compensation fund contribution, so check the amount with your regulator
• Some provinces have premises requirements that may rule out a purely home-based setup, so check before you commit
• Garage or dealer insurance, commercial general liability and cover for stock
• Disclosure rules, liens, odometer and accident history, and any mandatory vehicle information package in your province
• GST/HST and provincial sales tax on dealer sales, so check with the CRA and your province
• Cash tied up in unsold cars, plus the risk of buying a car with hidden faults
• Quebec has its own rules and French-language requirements

Startup costs are typically estimated at around $50,000 to $150,000, depending on how much stock you buy and what your province requires. Remember that cash can be tied up in unsold cars, so plan your working capital carefully.

Estimated monthly revenue is typically around $8,000 to $35,000, depending on how many cars you sell and their price. This is revenue, not profit, so allow for the cost of buying and preparing each car and for the risk of hidden faults.

Check with your provincial regulator. A dealer licence is generally needed to sell vehicles regularly, and selling without one (curbsiding) may be illegal. Also check any dealer bond or compensation fund amount, premises requirements that may rule out a home-based setup, and Quebec's own rules.