Home-based used car dealer

Private buyers looking for an affordable used car, often first-time buyers, families and people replacing a car quickly.

You sell each car for more than you paid, after covering prep costs, any repairs, advertising and warranty. Profit per car varies a lot, so careful buying matters most.

• Judging a car's condition and value
• Negotiating with sellers and buyers
• Basic bookkeeping and record keeping
• Honest, clear customer communication

• Motor trade insurance, as standard car insurance usually does not cover buying and selling cars, so check cover with a specialist broker
• Consumer rights law: cars sold by a trader must generally be of satisfactory quality and as described, so check what applies to you
• Buying cars with hidden finance, clocked mileage or write-off history, so always run a history check
• Whether you can trade from your home address, which may depend on your landlord, mortgage lender or local council
• Consumer credit authorisation, which you may need if you arrange finance for buyers, so check with the Financial Conduct Authority
• Tight cash flow, as money is tied up in stock until each car sells

Startup costs are estimated at typically around £3,000 to £15,000, depending on how many cars you buy at a time. Monthly revenue is typically estimated around £1,500 to £8,000, but cash is tied up in stock until each car sells.

Check motor trade insurance with a specialist broker, as standard car insurance usually does not cover trading. Also check consumer rights rules, vehicle history checks, whether you can trade from your home address, and Financial Conduct Authority authorisation if you arrange finance.

You need to judge a car's condition and value, negotiate with buyers and sellers, keep basic records and communicate honestly. Time needed is estimated at around 10 hours a week at minimum.