Used electric car forecourt with servicing

Private buyers, small businesses and sole traders switching to electric, and trade buyers.

Margin on each car sold, plus income from servicing, warranty products and any accessories such as charging cables. Takings are sale prices, so profit is a small share.

• Pricing and buying stock well
• Selling face to face and building trust
• Understanding electric cars and their servicing needs
• Managing cash flow, stock and paperwork

• Planning permission and the right use class for a car sales site, so check with your council
• Business rates, rent and insurance, which add fixed monthly costs
• Consumer rights obligations for dealer sales, including returns and faults, so check with Trading Standards
• Working on electric vehicles involves high voltage systems, so anyone doing the work should be properly trained and qualified
• Offering finance to buyers may need FCA permissions, so check before you do
• Stock tied up in cars that sit unsold, and falling used values
• Data protection duties for storing customer details, so check ICO registration

Startup costs are typically around £70,000 to £250,000, depending on your premises, stock and servicing set-up. Rent, business rates and insurance add fixed monthly costs, and stock can sit unsold while used values fall.

Monthly revenue is typically around £25,000 to £120,000, depending on how many cars you sell and any servicing you add. This is revenue, not profit, and fixed costs and unsold stock can reduce what you keep. Expect at least around 40 hours a week.

Check planning permission and the right use class with your council, business rates, consumer rights obligations with Trading Standards, and ICO registration for customer data. Anyone working on electric vehicles should be properly trained, and check FCA permissions before offering finance.