Resource Author Francisco Rodriguez Higueras
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If you are thinking of buying a gas station for sale in the Greater Toronto Area or in southern Ontario, Canada there are a few things you should think about before you make the purchase. Buying a service station can be a bit more complex than many other types of issues due to environmental or franchise variables. They can also be a great investment if structured properly.

Demand for gas station businesses is high
These are one of the most popular businesses that people generally inquire about. They are (relatively) easy to operate and can be a good investment for the right owner. The demand for gas stations will remain high – even if the price of oil continues to fluctuate. If there is a major shift to “green” energy in the future people will still require local and accessible centres to fuel their vehicles.

The first is that the banks need money. Banks are in trouble, they need money to survive. Not all banks of course. There are many regional banks that avoided this economic crisis we’re in by following sound business practices and lending money to people that could pay it back. The problem is that the responsible banks will still pay for the greed and bad practices of the big major conglomerate bank/finance companies. The way banks make money is by charging interest rates for money they lend. OK, simple enough. This contraction the economy is in has put most of these big banks in the red. The best and easiest way for them to become profitable (and pay back all that money they owe us, the taxpayer) is to make more money, and they do this by raising interest rates. Credit companies are already doing it.

What to Look for in a Gas Station for Sale

Location. Traffic & accessibility are the keys here. An ideal situation may be access off of a major highway with little or no competition. A busy street with good access from several directions is also highly desirable.

Convenience Store. A large convenience store will attract traffic. The bigger the better, in fact. Generally, all things being equal – a service station with a large convenience store will attract more customers than a similar one that has a small convenience store.

“Curb Appeal”. What shape is the gas station for sale in? Is it clean? Is it attractive and welcoming or is it run down, dirty and needing of some significant TLC? This is important. A gas station that is clean and welcoming will attract more traffic.

Neighbourhood. If crime is a concern for you (and it should be) some neighbourhoods are more prone to crime than others. Gas businesses can be targets for criminals so choose your location wisely.

Some Issues to Consider

Environmental Issues. Consult with an expert regarding the environmental issues surrounding a gas station business for sale. You may encounter issues such as contamination, tank lining and remediation. If there is an environmental issue to contend with you will want to know before you buy the business. Clean-ups can cost into the thousands of dollars. Investigate if there is any pending or past law suits or actions taken as a result of environmental issues. The new owner of a gas station may be held liable.

Road Construction. Check with the city to see if there is any major road work planned for the street that the gas station is on. Road construction can cause serious financial issues for a gas station business if it prevents customers from coming to you.

Franchise or Independent? If you buy a franchised gas business under the flag of one of the major companies then you typically will buy gas from them. Independent gas stations are not necessarily held to one supply source but they can sign agreements with distributors to get pricing breaks on gasoline purchases.

Buying a filling station business for sale can be a great investment. It is important to also remember that buying a gas station is not necessarily a “hands off” investment – contrary to what some people may think. It involves a lot of hands-on work to make it a success. A gas service station business is like most other small businesses in that books needs to be kept, employees need to be managed and proper planning must be in place to make it a success.

It is very important to do thorough investigation and to consult with legal, accounting and environmental experts before you make the purchase