Used commercial truck and van lot

Tradespeople, small contractors, delivery and courier operators, farms and local businesses, plus some private buyers.

The margin between what you pay and what you sell for, plus any fees you charge for financing referrals, warranties or delivery. Most of your money is tied up in stock.

• Judging vehicle condition and value
• Negotiating when buying and selling
• Record keeping and paperwork
• Customer service

• Most provinces require a motor vehicle dealer licence and may require a bond and approved premises, so check your provincial regulator
• Safety inspection and disclosure rules for used vehicles differ by province, and you must usually check for liens and accident history
• Commercial general liability and garage or dealer insurance, plus coverage for stock on the lot
• GST/HST or provincial sales tax rules on used vehicle sales, so check with the CRA and your province
• Cash tied up in unsold stock, especially in slow winter months
• Check municipal zoning before leasing a lot for vehicle sales

Estimates suggest startup costs typically around $50,000 to $200,000, depending on the lot, premises and how much stock you buy. Cash can be tied up in unsold vehicles, especially in slow winter months.

Most provinces require a motor vehicle dealer licence and may require a bond and approved premises, so check your provincial regulator. Also check inspection and disclosure rules, lien checks, sales tax rules and municipal zoning for the lot.

Monthly revenue is typically estimated around $25,000 to $120,000, depending on how many vehicles you sell and their price. Cash is tied up in stock, so check your buffer for slower months.