Small-Lot used car dealership

Local buyers who want a used car from a dealer, including first-time buyers and people who need finance, as well as people trading in their vehicles.

Vehicle sale margins, plus commissions on finance, warranties and add-ons where permitted. Revenue figures are total sales, so profit is much smaller after car costs and overheads.

• Vehicle appraisal and pricing
• Sales and negotiation
• Managing cash flow and stock
• Customer service and follow-up

• Dealer licensing, bonding and compensation fund requirements vary by province, so check with your regulator.
• Zoning and signage rules for car lots, which vary by municipality.
• Garage liability and stock insurance, and theft or damage on the lot.
• Disclosure, advertising and consumer protection rules, and any rules on finance and add-on products.
• Unsold stock ties up cash, and winter can slow sales in many areas.

Estimates suggest startup costs typically around $60,000 to $200,000, depending on lot or rental costs, stock levels and licensing. Monthly revenue is typically estimated around $60,000 to $250,000, depending on how many vehicles you sell.

Check with your provincial regulator, since dealer licensing, bonding and compensation fund requirements vary by province. Also check municipal zoning and signage rules for car lots, and disclosure, advertising and consumer protection rules, including any on finance and add-on products.

Estimates suggest at least about 40 hours a week. Useful skills include vehicle appraisal and pricing, sales and negotiation, and managing cash flow and stock. Unsold stock ties up cash, and winter can slow sales in many areas.