Used lorry dealer with a small yard

Hauliers, owner-drivers, contractors, farmers and small firms that need a reliable used truck.

The gap between what you pay and what you sell for, after prep, transport and finance costs. Turnover will look large, but your profit is only the margin on each sale.

• Strong knowledge of trucks and how to value them
• Negotiating at auctions and with buyers
• Managing cash flow and stock

• Check planning permission or permitted use for the site, and any environmental rules for washing or storing vehicles
• Motor trade insurance, public liability and cover for stock on the yard are worth checking
• Your selling terms, warranties and rules for sales to individuals may be set by consumer law, so check with Trading Standards
• Stock ties up a lot of cash and unsold trucks can lose value
• Check for outstanding finance, a stolen vehicle marker and the vehicle's inspection history on every purchase
• Check VAT treatment, including the margin scheme, with an accountant
• Check whether you need to register with DVLA for trade plates

Startup costs are typically around £30,000 to £150,000, depending on the size of your yard, how much stock you buy and the preparation work involved. Stock ties up a lot of cash, so plan your funding carefully.

Monthly revenue is typically around £15,000 to £75,000, depending on how many trucks you sell and their prices. This is revenue, not profit, and unsold trucks can lose value, so check your numbers carefully.

Check planning permission or permitted use for the site and any environmental rules for washing or storing vehicles. Also check motor trade insurance, consumer law on selling terms with Trading Standards, VAT treatment with an accountant, DVLA trade plates, and finance and stolen vehicle checks.