Online used car reseller

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

The gap between what you pay for a car (plus repairs, fees and detailing) and the price you sell it for. Profit per car varies a lot, so careful buying matters most.

• Judging a car's condition and value
• Negotiating prices
• Taking good photos and writing honest listings
• Keeping accurate records

• Most states require a dealer license once you sell more than a small number of cars a year, so check your state's DMV or licensing board
• Dealer bond, insurance (such as garage liability) and often a physical location requirement vary by state, check them before buying stock
• Title problems, odometer fraud, hidden mechanical faults and salvage or flood history can wipe out your profit
• Check zoning, HOA or lease rules before parking cars at home
• Sales tax registration and rules on paperwork, disclosures and warranties differ by state, and federal rules such as the FTC Used Car Rule may apply

Startup costs are typically around $8,000 to $35,000, depending on how many cars you buy at first, plus licensing, bond and insurance costs that vary by state.

Most states require a dealer license once you sell more than a small number of cars a year, so check your state's DMV or licensing board. Dealer bond, insurance and location requirements also vary by state, so check them before buying stock.

Monthly revenue is typically around $4,000 to $20,000, depending on how many cars you sell and their prices. Title problems, hidden faults and salvage or flood history can wipe out your profit.