Online used car trader from home

Private buyers looking for affordable, reliable cars, often first-time drivers, families and commuters.

The margin between what you pay for a car, including prep and repairs, and what you sell it for. Profit per car varies a lot, and cars can sit unsold.

• Spotting good value cars and avoiding bad ones
• Basic car knowledge and honest descriptions
• Negotiating and customer service
• Taking good photos and writing clear adverts

• Motor trade insurance is usually needed if you buy and sell cars as a business, so check what cover you need
• Consumer law applies: cars must be as described and of satisfactory quality, so check your responsibilities with Trading Standards or Citizens Advice
• Run a vehicle history check on every car for outstanding finance, write-offs and mileage issues
• Check whether trading from your home address is allowed by your landlord, mortgage lender or council, and whether neighbours may object to cars on the street
• Cash tied up in stock, and repair costs that can wipe out the margin

Startup costs are typically estimated at around £3,000 to £15,000, depending on how many cars you buy at first, whether you rent space and what preparation each car needs. Cash tied up in stock and repair costs can reduce your margin.

Monthly revenue is typically estimated at around £2,000 to £10,000, depending on how many cars you sell and at what prices. That is revenue, not profit, so stock, repairs and insurance costs come out of it.

Check what motor trade insurance you need, and your consumer law duties: cars must be as described and of satisfactory quality, so ask Trading Standards or Citizens Advice. Also check whether your landlord, mortgage lender or council allows trading from home, and run a vehicle history check on every car.