Small used car forecourt

Local private buyers who want to see and test drive a car before buying, including those wanting a short warranty.

Margin on each car sold, plus optional add-ons such as warranties or finance introductions if you are authorised to offer them.

• Vehicle buying and valuing
• Selling and negotiating
• Managing stock, cash and paperwork
• Working with a trusted mechanic or valeter

• There is no specific UK licence to sell used cars, but check that the site has the right planning use with your local council before signing a lease
• Motor trade insurance and public liability insurance are needed in practice, so get quotes early
• Arranging or introducing finance usually needs Financial Conduct Authority authorisation or permission, so check with the FCA before offering it
• Consumer law on quality, description and returns, and a duty to be honest about a car's history
• Rent, insurance and unsold stock create fixed costs, so keep cash in reserve
• Check with the Environment Agency or your council about rules for storing and disposing of waste oil and fluids

Startup costs are typically around £25,000 to £100,000, depending on the rent, how many cars you stock and your insurance. Unsold stock and fixed costs tie up cash, so it is worth keeping some in reserve.

Monthly revenue is typically around £10,000 to £35,000, depending on how many cars you sell and their prices. That is revenue, not profit, and the estimate assumes at least about 40 hours a week.

Check that the site has the right planning use with your council before signing a lease, and get motor trade and public liability insurance quotes early. Also check FCA authorisation before offering finance, consumer law on description and returns, and waste oil rules.