Used motorcycle dealership

Buy, prepare and sell used motorcycles from a small lot or showroom, with simple servicing and accessories on the side.

New motorcycles lined up on the floor of a dealership showroom.
Startup costC$30k to C$150k
Monthly revenueC$10k to C$50k
Time needed35+ h/week
First incomeMonths
  • C$30k-150k
  • Full-time
  • Own premises
  • Licence or permit needed

Estimates for a small start in Canada, not guarantees.

What it is

A small dealership selling pre-owned motorcycles, scooters and sometimes ATVs from a rented unit or lot. You source bikes from trade-ins, auctions and private sellers, inspect and detail them, then sell them to local riders. Basic accessories, helmets and gear can add extra sales.

Your first three steps

  1. Contact your provincial motor vehicle regulator to find out the dealer licensing, bonding and premises requirements before you spend any money
  2. Price a rented unit or lot, and check zoning with your municipality, then build a budget for your first 10 to 20 bikes
  3. Line up your supply (local auctions, trade-in contacts, private sellers) and set up a way to run history checks and show clean paperwork
Who pays

Local riders, including first-time buyers, returning riders and people upgrading, who want a vetted bike with some support behind it.

How it makes money

The margin between what you pay for a bike (plus prep costs) and its sale price. Extra income can come from accessories, gear, consignment fees, and service or safety inspection work.

Skills that help
  • Knowing motorcycles and how to judge their condition and value
  • Buying and negotiating
  • Customer service and sales
  • Basic bookkeeping and record keeping
Watch out for
  • Most provinces require a motor vehicle dealer licence (for example through OMVIC in Ontario, AMVIC in Alberta or the Vehicle Sales Authority in BC), and Quebec has its own rules; check yours
  • Rules on disclosure, liens, safety inspections and sales contracts; selling a bike with an undisclosed lien or a previous write-off can lead to serious trouble
  • Garage and dealer insurance, commercial general liability and cover for stock on site and test rides
  • Sales are strongly seasonal in most provinces, so plan cash flow for the winter months
  • Inventory ties up a lot of cash, and unsold bikes lose value
  • GST/HST or PST/QST rules on used vehicle sales vary by province; check with an accountant

Deep research report · Canada

Everything you need to start: used motorcycle dealership

Researched with live web search for Canada: real startup prices, the licences and rules, what others charge, a break-even example, how to find your first customers and a 30-day launch plan. With sources.

  • Startup costs with real prices
  • Licences, registration and rules
  • Pricing: what others charge
  • Break-even example
  • Finding your first customers
  • 30-day launch plan
  • Risks and how to reduce them
Ready in about 2 minutes · one-off payment, tax included

See a full sample report

Questions people ask

How much does it cost to start a used motorcycle dealership?

Estimated startup costs are typically around $30,000 to $150,000, depending on premises, how many bikes you stock and insurance. Inventory ties up a lot of cash, and unsold bikes lose value.

How much revenue can a used motorcycle dealer make?

Monthly revenue is estimated at typically around $10,000 to $50,000, depending on stock, pricing and location. Sales are strongly seasonal in most provinces, so plan cash flow for the winter months.

Do I need a licence to sell used motorcycles in Canada?

Check whether your province requires a motor vehicle dealer licence (such as OMVIC, AMVIC or the Vehicle Sales Authority in BC; Quebec has its own rules). Also check disclosure, lien and safety inspection rules, dealer insurance, and tax on used vehicle sales.

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Photo: mokshabongs on Pixabay

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