Used lorry and van dealership with a small yard

Haulage firms, builders and other tradespeople, farmers, owner-drivers and private buyers looking for a commercial vehicle.

The margin between purchase and sale price, plus extras such as delivery or part-exchange deals. The revenue estimate here reflects your gross margin, not the full sale price of each vehicle.

• Mechanical knowledge to judge condition and repair costs
• Buying well at auctions and from fleets
• Selling and negotiating face to face

• Planning permission or permitted use of the yard. Check with the local council before signing a lease
• Motor trade insurance and public liability insurance, and cover for vehicles on site overnight
• Cash tied up in stock can be heavy, and slow sales can strain finances
• Run history checks for finance, theft and mileage on every vehicle you buy
• Check your duties to private buyers under consumer law, and what warranty you offer
• Check rules on vehicle roadworthiness, plating and testing for heavier lorries before you sell them
• Ask an accountant about the VAT margin scheme and how to keep records
• Storing fluids and washing vehicles on site may bring environmental rules, so check with the council or Environment Agency equivalent for your nation

Startup costs are typically around £15,000 to £75,000, depending on the yard, the stock you buy and your insurance. These are estimates, and cash tied up in stock can be heavy if sales are slow.

Check planning permission or permitted use of the yard with your council before signing a lease. Also check motor trade insurance, vehicle history checks, consumer law and warranties, roadworthiness and plating rules, the VAT margin scheme and environmental rules.

Monthly revenue is typically around £6,000 to £30,000, depending on how much stock you hold and how quickly it sells. Slow sales can strain finances, so keep a close eye on cash flow.