Buying an Automotive Dealership or Repair Business With Commercial Property in Alberta

1. Define the business, property and transaction perimeter

Identify whether the proposal is a share purchase, asset purchase, real-property purchase, lease assignment or coordinated combination. Schedule the legal entities, trade names, AMVIC licence classes, manufacturer or banner agreements, vehicle inventory, parts, equipment, receivables, deposits, customer property and excluded assets.

State which entity owns or leases the premises, employs staff, contracts with customers, holds inventory, owes floorplan debt and receives manufacturer or warranty payments. A dealership name on the building does not establish ownership of the corporation, franchise, vehicles or land.

• Shares or assets
• Owned or leased premises
• AMVIC classes
• Franchise or banner rights
• Vehicle and parts inventory
• Floorplan and other debt

2. Build a licence and approval path for the buyer

AMVIC requires applicants to select the licence class matching the actual activities—such as new or used sales, wholesale, leasing, consignment or repair—and obtain written municipal or land-use approval before applying. Its licensing policy states that each location requiring a licence is licensed separately.

Confirm with AMVIC and each authority what the proposed buyer, entity, address, ownership structure and activity mix require. A seller's current licence, salesperson registrations or municipal approval does not prove that the buyer may operate after closing.

3. Verify manufacturer, franchise and banner dependencies

Review dealer, franchise, distribution, warranty, parts, image-program, facility-standard, data, advertising and financing agreements with counsel. Identify approval, assignment, change-of-control, territory, facility, working-capital, sales-performance, renovation and termination provisions.

Treat brand approval, allocation, warranty reimbursement and incentive participation as transaction-specific. A seller's current relationship does not prove that the buyer will be appointed, receive the same terms or avoid required facility work.

4. Reconcile vehicle inventory and title

Create a VIN-level schedule for new, used, demonstrator, service-loaner, rental, consigned, customer, wholesale, in-transit and sold-not-delivered vehicles. Record legal owner, location, acquisition cost, floorplan lender, curtailment, lien, age, condition, mileage, deposit, sale status and included-or-excluded treatment.

A vehicle count is not owned inventory or equity. Separate seller-owned units from financed, consigned, customer-owned, traded-not-cleared, sold-not-delivered and off-site vehicles, then reconcile the schedule to accounting, floorplan statements, registry and physical evidence.

5. Rebuild sales economics from unit-level records

Reconcile deals by VIN, date, sale type, customer, advertised price, gross selling price, trade, accessories, finance and insurance products, fees, taxes, rebates, incentives, commissions, cancellations and collected cash. Tie unit data to bank, merchant, lender, registry, general-ledger and financial-statement records selected by the accountant.

Gross vehicle sales are not gross profit or collected cash. Separate front-end margin, finance-and-insurance income, manufacturer incentives, warranty receivables, aged inventory losses and deal unwind exposure.

6. Rebuild service, parts and collision operations

Export repair-order, technician-time, parts, sublet, warranty, internal, customer-pay and receivable records by job and period. Reconcile billed labour, effective labour rate, parts margin, technician productivity, comeback, work in progress and collected cash.

An opened repair order is not completed or collected revenue. A physical service bay is not a productive bay unless staffing, equipment, workflow, approvals and demand support it.

7. Test floorplan, liens and working capital

Reconcile every financed vehicle and parts or equipment obligation to lender statements, borrowing bases, curtailments, interest, audit results and payoff requirements. Order appropriate Personal Property Registry searches and have counsel interpret registrations and required discharges.

Model vehicle and parts inventory, customer deposits, sold-not-delivered units, payables, receivables, warranty claims, taxes and payroll at closing. Seller book value is not proof of realizable value or lien-free title.

8. Verify the specialized premises

Confirm municipal uses and permits for sales, outdoor display, service, body and paint, detailing, washing, fuel, charging, storage, signs and large vehicles as applicable. Edmonton notes that a repair shop adding vehicle sales can require separate uses; Calgary classifies automotive activities by scale and activity.

Review site circulation, display and storage, customer parking, bay dimensions, doors, clear height, ventilation, make-up air, exhaust, paint booth, compressed air, power, gas, vehicle charging, security and accessibility. A former automotive operation does not approve the buyer's complete program.

9. Trace wastewater, waste and environmental history

Map drains, sumps, oil-grit or oil-grease-sand interceptors, wash areas, tanks, chemicals, used oil, filters, coolant, solvents, batteries, tires, paint and hazardous waste. Reconcile permits, service records, manifests, spills, complaints and sewer inspections with qualified professionals.

Calgary and EPCOR publish automotive wastewater controls, but requirements remain jurisdiction- and property-specific. A working drain or cleaned interceptor is not proof of legal discharge, capacity, environmental condition or absence of historical releases.

10. Inspect hoists, equipment and inspection-facility rights

Inventory every hoist, alignment rack, tire machine, compressor, booth, frame rack, diagnostic system, charger, tool and parts system by ownership, serial number, installation, certification, maintenance, defect and included status. Alberta's OHS Code has specific vehicle-hoist requirements.

If the business performs regulated commercial, out-of-province or salvage inspections, verify the facility and technician licences separately with Alberta's Vehicle Inspection Program. Do not assume those rights, personnel or system access move with the real estate or business assets.

11. Control customer, employee and vehicle data

Use staged, secure diligence for customer identities, credit information, driver records, deal jackets, financing data, service history, employee information and connected-vehicle or telematics records. Alberta PIPA applies to many private-sector automotive businesses.

Have privacy and legal advisors define necessary disclosure, permitted use, access, retention and destruction. An NDA does not authorize unrestricted release of customer or employee records.

12. Convert dependencies into closing controls

Map manufacturer approval, AMVIC and municipal licensing, property diligence, landlord consent, floorplan payoff, vehicle count, inventory valuation, inspection-facility status, staff, insurance, WCB, customer deposits, data migration and possession to objective evidence and deadlines.

This guide is educational and is not legal, tax, accounting, employment, privacy, appraisal, business-valuation, environmental, engineering, AMVIC, manufacturer, safety-code or vehicle-inspection advice. Commercially does not certify licences, franchise appointment, inventory, earnings, equipment or property approval.