How to Start a Used-Car Sale and Purchase Business in Toronto

1. 1

   Step 1: Confirm Work Eligibility

   Confirm that every owner, director, partner, person in charge, signing authority and salesperson who will actively work in the business has the required authorization to work in Canada.

2. 2

   Step 2: Prepare a Business Plan

   Include the dealership model, target market, proposed location, vehicle types, inventory budget, sourcing plan, pricing strategy, staffing, advertising, repair expenses, insurance, taxes and cash-flow forecast. New dealer applicants should prepare the detailed business information OMVIC requests and confirm current requirements in the application portal.

3. 3

   Step 3: Register the Business

   Choose an appropriate structure such as a sole proprietorship, partnership or corporation. Register the business through the Ontario Business Registry and obtain a CRA Business Number and required program accounts.

4. 4

   Step 4: Complete the OMVIC Automotive Certification Course

   Individuals applying as new dealers or salespersons generally must complete the required Automotive Certification Course. Passing the course alone does not authorize a person to trade vehicles; OMVIC registration must also be approved. Applicants with credentials from another Canadian jurisdiction should ask OMVIC whether Ontario labour-mobility rules apply.

5. 5

   Step 5: Submit OMVIC Applications

   Complete the online dealer business application. Individual applications may also be required for owners, officers, directors, partners, the person in charge, signing authorities and people who trade vehicles on behalf of the business.

   OMVIC currently lists a $699 business-application processing fee and a $349 individual salesperson processing fee. Fees can change and must be verified directly with OMVIC before payment.

6. 6

   Step 6: Complete Background Checks

   OMVIC applicants may need the required background screening, including the screening provider identified in the application process. Do not obtain a report too early because OMVIC may apply a validity period to background-check documents.

7. 7

   Step 7: Find Compliant Business Premises

   A dealership ultimately requires suitable premises. OMVIC allows applicants to begin the business application before providing final premises information. This can help avoid paying rent before the application reaches the appropriate stage.

   Do not sign an unconditional commercial lease. Make any proposed lease conditional upon zoning, municipal, landlord and OMVIC approval.

8. 8

   Step 8: Confirm Toronto Municipal and Zoning Requirements

   Before renting or purchasing a location, confirm that the proposed address permits the intended dealership, office, vehicle display, storage, parking and repair activities. Contact the City of Toronto to determine which municipal licences or permits apply.

9. 9

   Step 9: Arrange Tax, Banking, Insurance and Bookkeeping

   Open a dedicated business bank account. Establish professional bookkeeping, inventory records and tax procedures. Confirm GST/HST obligations with the CRA or a qualified accountant. Obtain the commercial and garage insurance required for the proposed dealership activities.

10. 10

    Step 10: Start Trading Only After Approval

    After receiving all required registrations and approvals, implement compliant purchasing, advertising, contracts, disclosures, vehicle transfers, tax invoices, customer records and privacy procedures.

Planning notice: These figures are general planning estimates, not quotations or guarantees. Actual expenses depend on the registration class, premises, insurance history, inventory, vehicle condition, financing and business model.

Auction access does not replace OMVIC registration or due diligence. Verify every seller, VIN, lien, vehicle condition and transaction document.

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Contact each organization directly to confirm current services, public or dealer-only access, appointments, fees, insurance and terms. Obtain independent advice and check for conflicts before retaining a legal professional.