[Zedder]

Ed, I recently completed a business plan for the same thing although it was for Ontario as opposed to AZ. My fixed costs were about $20,000/year including rent, insurance, license fees etc. with the killer being rent. In Ontario, you must have a separate facility from your home to obtain a dealer's licence. Insurance was also hefty at about $3,000/year for $250,000 in inventory and one driver. So, unless you absolutely require the space for your cars, this idea does not make much financial sense...unless of course you want to do this for a living. As for buying and selling a few cars per year, this can be done in many States with no repurcusions other than capital gains taxes, which would be less in most instances than your actual business tax rates, especially if one's wife doesn't work outside of the home and can claim the income.

I decided to go with a 3-car garage and a couple of lifts and just take the capital gains hit if I sell a car.