Used Vehicle Exporter with a Small Yard

Overseas car dealers and wholesalers who buy regularly, plus private buyers abroad who want a ready vehicle.

You sell vehicles at a margin above purchase, repair and shipping costs. Filling containers lowers the shipping cost per vehicle, and repeat dealer customers give steadier sales. Startup costs include yard deposit, licensing, insurance, equipment and an initial stock of vehicles, enough to fill at least one or two containers.

• Judging used vehicle condition and value
• Managing cash flow and stock
• Building relationships with overseas buyers
• Handling export paperwork and shipping logistics

• Check your provincial dealer licensing rules, as many provinces require registration for regular vehicle trading and may require premises standards or a bond
• Check municipal zoning and business licence rules for storing vehicles on a yard
• Confirm CBSA export reporting requirements and document every vehicle's title and lien status
• Garage liability, cargo and commercial general liability insurance, and WCB/WSIB coverage if you hire
• Cash tied up in stock: the startup range includes buying roughly 10 to 25 vehicles, but vehicles can sit unsold and lose value, and shipping cost swings can wipe out your margin
• Winter weather can slow auctions, yard work and shipping schedules
• Destination countries can change their duties and import rules quickly, so check before each shipment
• Beware of buyer scams, payment fraud and stolen vehicles

Estimates suggest startup costs typically around $150,000 to $600,000, depending on how many vehicles you buy (the range assumes roughly 10 to 25), plus yard rent, repairs and shipping costs.

Estimated monthly revenue is typically around $40,000 to $200,000, depending on volumes and the vehicles you sell. Revenue is not profit: vehicles can sit unsold and lose value, and shipping cost swings can wipe out your margin.

Check your provincial dealer licensing rules, municipal zoning and business licence rules for a yard, and CBSA export reporting requirements. Document each vehicle's title and lien status, and check destination countries' duties and import rules before each shipment.