How Much Does It Cost to Buy a Gas Station?

Cost of Building a Gas Station

Are you considering buying a gas station for sale and wondering how much does it cost? Naturally, there are many variables to think about, many of which will hinge on the business model you will use for your new purchase.

Do you want to lease or operate the gas station yourself, or are you mainly after the real estate? If you were wondering, the biggest profit potential comes from running the gas station yourself, but you will need some experience. All of these variables will change how much a gas station for sale will cost.

When purchasing a gas station without property, there will be “goodwill”, which could be upwards of $100,000. You may also need to purchase the inventory. For example, if there is $50,000 to $200,000 in stock on the shelves, the current owner will add this amount to the sale price. Below are a few more indicators that can significantly influence the price you will pay.

Buying Gas Station With Property

If you’re looking to invest in a gas station in Ontario, one of the first things you’ll need to consider is the cost. The price of a gas station can vary widely depending on a number of factors, including its location, size, and the services it offers.

On average, the cost to buy a reasonable gas station in Ontario ranges from 2 million to 15 million dollars. The cost can be influenced by the size of the land, whether it has a car wash and a food partner, and its income.

If you’re looking to purchase a gas station in a prime location, such as a busy highway, you can expect to pay a premium. However, this can be offset by the increased traffic and potential for higher profits.

It’s important to do your research and speak with a qualified real estate agent or broker to ensure you’re making an informed decision. They can help you navigate the complex process of purchasing a gas station and ensure you’re getting a fair price.

In summary, the cost to buy a gas station in Ontario can vary greatly depending on a number of factors. Do your due diligence and work with a professional to ensure you’re making a sound investment decision.

The Location of the Gas Station for Sale

Check out the surrounding location of the gas station. Is there any development planned or going on? What businesses are close by? Are there any  industrial area for diesel  sales for trucking or high traffic area or intersection? Do lots of cars pass through. You can find out more by checking Transportation Planning Maps, which will give you the average daily traffic figures.

If you’re buying a gas station for sale for real estate, consider the property’s frontage. Sometimes, the value of the property alone can make buying it worthwhile. However, you will want to ensure the tanks are in good condition, so you know you are not taking ownership of a potential environmental hazard.

Demographics of the Area

The demographics of the zip code will have a big role to play in your future profit margins. Ideally, you want to buy a gas station for sale in an area where the income is around 50K – 75K. This income level means you will be serving mainly blue-collar workers who typically spend more money on gas than white-collar professionals. A younger generation in the 20 to 40 age bracket also likes to spend on gas.

Branded or Non-Branded Gas

Gas stations usually have contracts measured in years, limiting you to a particular wholesaler for the contract term. Branded gas attracts loyal customers while non-branded is favoured by the budget conscious. Remember, gas sales are not where most of your profit comes from, but you will need to know the demographics of the area and the gas they prefer to put in their tanks. ON other hard there is value for good brand as well. Fuel consumers have build up trust  for fuel brand and  fuel cards and point also being traffic to gas stations.

Fuel Brand In Ontario

Ontario has a number of gas station brands, including Petro-Canada, Esso, Shell, Ultramar, Pioneer, Husky and Canadian Tire. It’s important to consider the competition in your area and how it may impact your business.

Check the Condition of the Tanks

Before purchasing a gas station, it’s critical to check the tanks are in good condition. You will need to estimate how much life they have left in them. A gas tank will be either made from steel or fiberglass if it’s a newer variety. Gas stations built before 1990 will usually have steel gas tanks. You can check the tank condition by contacting the respective environmental consultant or TSSA.

As you can see, you will need to do your due diligence when purchasing a gas station for sale. Whatever the asking price is, there is usually room for negotiation. The best way to find out how much a gas station costs, consult with Nav Sidhu, find a gas station for sale that matches your criteria, and make an inquiry today.

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