Small used car and van lot

Private buyers looking for affordable used cars, families, first-time buyers, and small businesses needing a used van.

You earn the margin between what you pay for a vehicle (plus prep and any repairs) and the sale price. Extras like trade-in deals, referral fees on financing and optional warranties can add to it. Monthly revenue here means gross sales, not profit.

• Judging a vehicle's condition and value
• Negotiating when buying and selling
• Paperwork and record keeping
• Customer service

• A dealer licence or registration is generally needed to sell vehicles as a business, and rules differ by province, so check yours
• Premises, signage and surety bond requirements set by your provincial regulator
• Dealer or garage liability insurance and cover for your stock
• Disclosure rules, safety inspection requirements and checking vehicles for liens and accident history
• Money tied up in unsold stock, especially over slow winter months
• GST/HST or provincial sales tax handling on vehicle sales; check with the CRA and your province

Startup costs are estimated at typically around $40,000 to $150,000, depending on your premises, licensing and how much stock you buy. Money can be tied up in unsold stock, especially over slow winter months.

Monthly revenue is typically estimated around $25,000 to $120,000, depending on how many vehicles you sell and their prices. These are revenue estimates, not profit, and winter months can be slower.

A dealer licence or registration is generally needed, and rules differ by province, so check yours. Also check premises, signage and surety bond requirements, dealer insurance, disclosure rules, safety inspections, lien and accident history checks, and GST/HST or provincial sales tax handling.