Start an online-first used electric car dealer

Private buyers who want a used EV at a fair price, plus other dealers and trade buyers who purchase from you.

You earn the margin between what you pay for a car (plus reconditioning and transport) and what you sell it for, with extra from documentation fees and, where allowed, referral fees on financing. Revenue figures below are gross vehicle sales, not profit.

• Knowing EV models, battery health and charging
• Negotiating and valuing used cars
• Online listings and photos
• Careful paperwork and record keeping

• Most states require a dealer license, a surety bond and an approved business location, and a home address may not qualify. Check your state and city rules
• Garage liability and dealer insurance, plus insurance on the cars in stock
• Battery condition is the big risk: get a proper battery health report before you buy, because a weak battery can wipe out your margin
• Title, odometer and disclosure rules (including the FTC Used Car Rule Buyers Guide) and state sales tax or title fees need to be handled correctly
• Federal and state EV incentive rules for used vehicles have changed over time, so check what currently applies before promising buyers anything
• Cars tie up a lot of cash. The startup cost range assumes roughly three to eight cars in stock plus licensing, bond, insurance, a rented approved location and reconditioning, so work out how long you can hold stock before you buy

Startup costs are typically around $80,000 to $250,000, depending on how many cars you hold in stock, plus licensing, bond, insurance, an approved rented location and reconditioning. These are estimates, so work out how long you can hold stock.

Monthly revenue is typically around $20,000 to $100,000, depending on how many cars you sell and their prices. That is revenue, not profit. Plan on at least about 20 hours a week. These are estimates only.

Check your state's dealer license, surety bond and approved location rules, since a home address may not qualify. Also check title, odometer and disclosure rules, including the FTC Buyers Guide, dealer insurance, and get a battery health report before buying.