10 Things to Avoid When Buying a Gas Station

Oct 8, 2022 Uncategorized

Owning a cheap gas station business can be a lucrative business or one that goes under quickly. Understanding how to buy a gas station business starts with understanding what you need to discover and plan for when finding one for sale. Being fully prepared to run gas stations means more than just having the capital to fund the day to day operations, but also in knowing the pitfalls and potential of your investment.

Here are 10 things to avoid when buying a gas station business. This will help you avoid many common mistakes made when considering buying gas stations for sale.

1. Not checking the tanks: The underground tanks which hold the gas should be in good shape. If they are leaking, this can cause you an enormous amount in clean up and environmental costs. So be sure the tanks are sound at the stations you check.

2. Old tanks: While older tanks may be sound, they may not be for long if they haven’t been upgraded. You want leak detection sensors inside your double-walled tanks. If not, then you should look somewhere else.

3. Check licenses: Be sure the station you are buying has all the licenses to cover what it does, including selling gas, food, liquor, lottery tickets and the like. Plus, you need to transfer them to your name, so take into account those costs as well.

4. Overpaying: Base your offer on what the cheap station actually https://arkat.ru/ nets, not just the gross profit. It may be that your gas station pays the bills based on a mechanical repair shop, convenience store or the like that is not included in the deal.

5. Location: Your gas station business must be alongside high traffic volume highways and roads to be successful. You need business which means being located where the people are at. Avoid out of the way gas station locations unless a major highway or expansion is going to be in the area soon.

6. Know the owner: You don’t want to make the purchase only to find out that the land your station is on is owned by someone else. This means you purchased a lease that will run out shortly, leaving you in the cold. Find out who owns the property and if it is leased, the length of the lease and if the mortgage payments are being made.

7. Check with City Hall: Another lesson in how to buy a gas station is checking with city hall to see if there are any future plans for the area that might affect your business. You do not want to discover that your land will be torn up for a new road, so always check with the planning and roads development group in city hall first.

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