Independent used car forecourt

Local private buyers who want to see, test drive and trade in a car in person, and who like dealing with a local business.

Margin on each car sold, plus extras such as warranties, and commission on finance if you are properly authorised or work with an authorised broker.

• Buying well at auction and from trade-ins
• Sales and customer service
• Managing stock and cash flow
• Arranging prep, valeting and basic repairs through trusted suppliers

• Planning permission for vehicle sales use and any rules on signs, so check with your council before signing a lease
• Consumer Rights Act 2015 duties on quality, descriptions and returns, plus rules on how you advertise and price
• Motor trade insurance, public liability and employer's liability if you hire
• Arranging or brokering finance is likely to need Financial Conduct Authority authorisation, so check before offering it
• Large sums tied up in stock, with rent, rates and insurance to pay whether cars sell or not; a starting stock of 10 or more cars plus a deposit on the site is the bulk of the startup cost
• Checking for outstanding finance, stolen vehicles and clocked mileage on every car
• Check VAT registration and the margin scheme with HMRC or an accountant

Startup costs are typically around £60,000 to £200,000, depending on your stock and the site. A starting stock of 10 or more cars plus a deposit on the site is the bulk of the cost. These are estimates only.

Check planning permission for vehicle sales use and any signage rules with your council before signing a lease. Also check Consumer Rights Act 2015 duties, motor trade insurance, and whether arranging finance needs Financial Conduct Authority authorisation.

Monthly revenue is typically around £25,000 to £100,000, depending on stock levels, pricing and how many cars you sell. The estimate assumes at least 40 hours a week, and rent, rates and insurance are due whether cars sell or not.