Small used car lot

Local private buyers, first-time car buyers, and people who want to see and test drive a car in person.

Profit on each car sold after purchase and prep costs, plus possible extras such as financing referrals or warranty products where permitted.

• Vehicle appraisal and buying
• Sales and negotiation
• Managing stock and cash flow
• Handling contracts and paperwork

• Provincial dealer licensing, bonding, registration and compensation fund rules, which differ across Canada
• Municipal zoning, signage and business licence rules for a vehicle lot
• Garage liability and stock insurance, plus winter theft and damage risk
• Consumer protection and disclosure rules, including advertising all-in prices where required
• GST/HST and provincial sales tax handling, and WCB/WSIB coverage if you hire staff
• Slow winter months in some areas and money tied up in unsold stock
• Quebec has its own rules and French-language requirements

Startup costs are typically estimated at around $160,000 to $400,000, depending on your premises, the amount of stock you hold and your insurance and licensing costs. Money tied up in unsold stock is a key cash flow factor to plan for.

Estimated monthly revenue is typically around $50,000 to $180,000, depending on how many cars you sell and at what prices. That is revenue, not profit, and slow winter months in some areas may affect your sales.

Check provincial dealer licensing, bonding, registration and compensation fund rules, which differ across Canada. Also check municipal zoning, signage and business licence rules for a vehicle lot, consumer protection and disclosure rules, and Quebec's own rules and French-language requirements.