Starting a car dealing business
Most people who start trading cars underestimate the same thing: not the paperwork, the sourcing. Selling almost always works out. Finding enough good cars at the right price is the real job.
What you arrange formally
The outline is the same in Belgium, the Netherlands and Germany: you register a business, you get a VAT number and you keep records in which every single car can be traced.
What differs per country are the licences, the thresholds and how you administer the margin scheme. Those differences are too large to summarise here without getting them wrong. Put your plan in front of an accountant in the country where you register, once. Then you know exactly where you stand.
One thing is the same everywhere: keep the purchase and the sale of each car separately traceable. Under the margin scheme you settle per car, not per month.
Where stock comes from
In practice there are two routes. They are not mutually exclusive:
- Auctions and trade platforms. Plenty of supply in one place, but you buy at trade price and compete with everyone else who is there.
- Private listings. Less orderly, but this is where the margin sits: the seller is not benchmarking against ten competitors.
Starting small leaves you little choice. At an auction you pay what the market sets. With a private seller you set it together.
What a car costs beyond the purchase price
The purchase price is rarely more than three quarters of your cost. Always add:
- transport or collection
- inspection, registration and transfer
- valeting, small repairs and possibly a set of tyres
- the time the car sits on your lot
- listing costs and the odds of dropping your price
A trader who does not fill in these five upfront earns more on paper than in reality. Our page on what a car dealer earns shows the current price gap between private sellers and dealers, measured live.
Where most beginners get stuck
Not at registration and not at selling. At keeping the sourcing going.
You buy the first five cars on enthusiasm. After that you need to see enough good listings every week to have a choice, which means watching five platforms while also running the business.
That is exactly the part you can automate. Autoflip watches 2dehands, Marktplaats, AutoScout24 BE and NL and Mobile.de at once and sends a Telegram message within seconds when a car appears that meets your criteria.
Frequently asked questions
What do I need to start dealing cars?
A registered business, a VAT number and records in which every car can be traced separately. Licences and thresholds differ per country, so put your plan in front of an accountant in the country where you register.
How much money do I need to start?
It depends on the segment. Budget not only the purchase price but also transport, inspection, repairs and the period your money sits in the car. Plan for at least one extra car in working capital.
Can I trade cars on the side?
Once you buy structurally in order to resell, you are a trader, even alongside a job. That means registering and paying VAT. Ask your accountant before you buy the first car.
Where do I buy my first cars?
From private sellers, because that is where your margin sits. Auctions offer more supply but at trade price. There you compete with everyone else present.
How do I keep seeing enough good cars?
By not refreshing five platforms by hand. Autoflip messages you within seconds when a car appears that matches your filters.
This page explains the main rules and is not tax advice. For your own situation, certainly for import, export or cross-border trade, ask your accountant or the tax authority.
Buying cars from private sellers · What a car dealer earns per car · Margin car: where you buy decides your VAT · Purchase declaration when buying privately