Small used car and van forecourt

Private buyers in your area, including people trading in an old car, and small traders looking for a used van.

Margin on each vehicle sold, plus commission on finance, warranties and add-ons where you are authorised to offer them.

• Vehicle valuation and buying
• Sales and negotiation
• Managing stock, cash flow and paperwork
• Marketing online and locally

• Motor trade insurance and public liability insurance, plus employer's liability once you hire staff
• Consumer credit authorisation from the Financial Conduct Authority if you arrange finance, so check what you need
• Consumer rights rules on quality, descriptions and returns, and rules on advertising prices clearly
• Planning permission and business rates for the site, so check with your local council
• Large amounts of cash tied up in stock, with the risk of cars that do not sell
• Buying cars with hidden finance or a poor history, so always run history checks

Estimates suggest startup costs typically around £25,000 to £120,000, depending on your premises, how many vehicles you stock and how much you spend on preparation and marketing. Stock ties up much of that cash, so plan your budget carefully.

Monthly revenue is typically estimated at around £15,000 to £70,000, depending on how many vehicles you sell and their prices. That is revenue, not profit, so stock, premises and running costs come out of it.

Check motor trade insurance and public liability cover, plus employer's liability once you hire. Look at Financial Conduct Authority consumer credit authorisation if you arrange finance, consumer rights rules, advertising prices, and planning permission and business rates with your council.