A top tip for auto repair business buyers is to look for a business that has a service writer. Employee costs should be around 25%; often an owner can trim some fat to boost the business’ Seller’s Discretionary Earnings (SDE).
Full Answer
How do I start my own auto repair shop?
The following four tips are key to accomplishing these goals. 1. Establishing your needs The vital first step is taking the time to establish exactly what you want to accomplish with your auto repair shop.
Who should you consult when buying an auto repair business?
The professionals you might need to consult during the buying process are: A business broker or commercial real estate agent familiar with auto repair business sales in the area Such professionals will have experience of the sales process that you lack.
Is owning an independent auto repair business a good idea?
For the mechanically inclined, owning an independent auto repair business offers a recession-proof income where strong customer service and hard work can create long-standing customer relationships and excellent repeat business. So how do you go about choosing the right auto repair shop to buy?
Can you work directly with the shop owner before taking over?
4. Working at the shop for a month This is, of course, dependent on the situation you’re presented with, and may not always be practical. But if circumstances allow, you can benefit a lot by working directly with the owner for a month or more prior to taking over as the new owner.
How profitable is a auto repair shop?
Average Profit of a Auto Body Shop In general, a larger auto body shop can earn $100,000 per year, and mechanics themselves can make between $30,000 and $50,000 per year. BizStats offers a breakdown of costs vs revenues. This, of course, will vary depending on your location and area of expertise.
How do auto repair shops make money?
6 Ways to Increase Auto Repair Shop ProfitsTake a Disciplined Approach to Your Finances. ... Schedule Appointments. ... Inspect Every Vehicle. ... Reduce Fees on Card Transactions. ... Invest in Current Customers (and Employees) ... Generate New Customers with Local Coupon Advertising.
How much does it cost to open a car performance shop?
Expect your startup costs to hover around $50,000, including equipment, rental fees and insurance. These are the bare basics: Diagnostic machine, between $5,000 and $10,000.
How much does a mechanic shop owner make a month?
Auto Repair Owner SalaryAnnual SalaryMonthly PayTop Earners$81,500$6,79175th Percentile$57,500$4,791Average$52,969$4,41425th Percentile$31,500$2,625
How do I start a successful car repair business?
How To Manage An Auto Repair Mechanic Shop?Increase Mechanic Productivity.Use Automotive Management Software.Reduce Employee Turnover Rate. ... Give Discounts And Introduce Sales Offers. ... Offer Guarantee & Stand Behind Them. ... Display An Ethics Statement.Store Budget.Reward Your Loyal Customers.
How much does an auto shop cost GTA?
Buying an Auto Shop in GTA Online To do this, head to the Maze Bank Foreclosures on your phone. You'll then be able to buy an Auto Shop starting from GTA$1,670,000. You'll also need to purchase the LS Car Meet Membership which costs GTA$50,000.
Do you need a mechanic license to open a shop in Ontario?
A licence is required to operate a body shop/car repair facility, car wash, gas station, car dealership or public garage. Before submitting an application, you must apply for a Preliminary Project Review (PPR) for a Business Licence.
How do you start a car?
0:553:41How To Start And Stop A Car - YouTubeYouTubeStart of suggested clipEnd of suggested clipPress the clutch down and select first gear. Press down slightly on the accelerator. And hold yourMorePress the clutch down and select first gear. Press down slightly on the accelerator. And hold your foot steady. There should be enough power to hear the engine Rev.
How do mechanics side hustle?
1:3012:22WAYS FOR MECHANICS TO MAKE MONEY ON THE SIDE - YouTubeYouTubeStart of suggested clipEnd of suggested clipSo the first thing that comes to mind when you think of side hustle. And as a mechanic is obviouslyMoreSo the first thing that comes to mind when you think of side hustle. And as a mechanic is obviously flipping cars one of the things that we as mechanics like to do is to fix. Things.
How do flat rate mechanics make money?
4:5215:06How to Manage Money as a Flat Rate Mechanic - YouTubeYouTubeStart of suggested clipEnd of suggested clipSo regardless of how much money you're making you want to live at a lower hour per week averageMoreSo regardless of how much money you're making you want to live at a lower hour per week average lifestyle. If you're making 70 hours a week maybe we're living at a 50 hour a week lifestyle.
Who is the richest mechanic in the world?
Aaron Kaufman net worth: Aaron Kaufman is an American mechanic and television personality who has a net worth of $8 million dollars....Aaron Kaufman Net Worth.Net Worth:$8 MillionDate of Birth:Jan 26, 1982 (40 years old)Place of Birth:Crowley, TexasProfession:Television personality, Automotive mechanicNationality:United States citizen
Can you make a good living being a mechanic?
The average salary for a mechanic is $35.63 per hour in California and $7,330 overtime per year. 3.2k salaries reported, updated at July 11, 2022.
Why is it important to observe first hand how a shop is run?
Allows you to observe first-hand how the shop is run, so you can make informed decisions about which aspects of the current arrangement you want to keep and which you want to refine or replace
How long do you have to work with a new owner before you take over?
But if circumstances allow, you can benefit a lot by working directly with the owner for a month or more prior to taking over as the new owner.
Is auto repair a recession proof business?
For the mechanically inclined, owning an independent auto repair business offers a recession-proof income where strong customer service and hard work can create long-standing customer relationships and excellent repeat business.
Is location important in auto repair?
Of course, location is always important. Auto repair shops are big, so you can’t stick one just anywhere. If you have a spot in mind, that’s great. But you should still run it by your (potential) franchisor to see what they think.
Is it better to buy an auto repair shop?
Buying an auto repair shop is, for many, one of the best investments they will ever make. The auto repair business is solid and growing. The average American vehicle is older than ever before. Older cars need more repairs which means more business for auto repair shops. What’s more, there are more vehicles on America’s roads than ever before. More vehicles mean more business for auto repair shops.
Why are auto repair shops not micro managed?
An auto repair shop is a location-based business and they might be moving. There’s always the risk that the area is oversaturated with the competition and that they can’t make a living.
Why is foot traffic important in retail?
Foot Traffic and Accessibility: For most retail businesses, foot traffic is extremely important. You don't want to be tucked away in a corner where shoppers are likely to bypass you, and even the best retail areas have dead spots. You might wonder why a repair shop needs foot traffic.
Is it cost effective to start an auto repair business?
Starting your own auto repair business from scratch is not always the most cost-effective idea. Alternatively, by buying an already existing business or a franchise, you can skip several initial steps and get right to business. Sure, it costs you more but when you compare it to the risks that your business would undergo in its formative months ...
Where is the small town auto repair shop located?
It is located in a rural country town of approx 2000 in Central Arizona, with larger cities in close proximity. The business was established in about 1985, and purchased by the current owner in 2000, and the owner has grown his customer base, commercial accounts, and referral base over the last 20 years. The operation is turn-key with very little needed to start work tomorrow. Business is a leased shop-based facility of 3000 sf, with one bay. It includes a 200 sf office space, with a 650 sf studio apartment on the second floor. The property is in excellent condition with additional acreage for parking and a fenced 6500 sf outdoor storage area. Reasonable rent and lease is able to be re-negotiated with the property owner. Some social presence through radio ads and a locally distributed monthly ads flyer is backed by a large repeat customer base, with word-of-mouth referrals and government contracts. There are opportunities for growth by maximizing marketing efforts across other media, and by adding the personnel needed to meet the business's substantial service demands which show no signs of slowing down. The business continues to have consistently strong revenue growth year after year. There are many opportunities present for new ownership to continue growth with minimal capital infusion. Partial owner financing may be available for the right motivated buyer. The owner is willing to support the Buyer during a 30 day transition period after close of escrow. Sales Price of $140K includes $20K in stock/inventory, and approximately $50K in tools and equipment. For more information please contact 928-632-4314 shop, 928-713-1992 cell, Acctg 928-899-2102 (voice & text)
Where is diesel repair located?
The diesel repair business has a great reputation and easy accessibility for trucks. Located in SE South Dakota the company has consistent growth. This great opportunity for a new owner to start with a very successful business and continue to grow. This is a complete operating business. Great investment opportunity.
How many bays are there in a Mercedes shop in Miami?
This perfectly located successful shop has been in business for 10+ years. The shop has 9 bays and specializes in servicing high-end luxury vehicles, such as: BMW, Mercedes, Land Rover, Porsche, Maserati, and other premium brands. Our excellent and longstanding reputation is known in Miami, a growing city without reliable mass transportation where residents need this business to care for them and their vehicles. The business has over 100 5-star reviews. The owner maintains a clean and organized business with books and records available upon request. This pandemic-proof "essential" business generates profit margins in excess of 50% every year. Even through a global pandemic sales were only nominally impacted. Additional extras include but are not limited to: private office space, break room, front desk office, large waiting area, and is also located on the water (Doral's Four Finger Lakes). Other assets include the proper machinery, equipment, and technology to diagnose and repair luxury vehicles. Plenty of safe outside parking on the premises (a 22K sq ft lot with 7K sq ft building). This successful turn-key operation is for sale because the owner is ready to retire.
How long has Precision Tune been in business?
Precision Tune Auto Care has been in the automotive aftermarket business for more than 40 years. We know the industry and we make it easy for you to open and operate a successful auto repair franchise by giving you the tools you need.
Is the East Bay smog shop AAA approved?
All Technicians are ASE Certified and the shop is AAA approved. COVID-19 has had very little impact on the business.
How long does it take to sell an auto repair shop?
With PropertyCashin, you avoid footing the bill for repairs, commissions, closing costs, and any other expenses. Typically, we can close deals in under 30 days.
How long does it take to get a cash offer from a car repair shop?
After a walkaround of your auto repair shop, you can have an obligation-free cash offer from us in 72 hours or less. Also, we sometimes make property owners an offer the same day as our scheduled visit.
What to do when you take an obligation free cash offer?
When you take the obligation-free cash offer we present you with, the next course of action is to sign the purchase contract we’ll draw up for you. To make sure the closing date works best with your schedule and the specifications of all involved parties, we’ll sit down and find a mutually beneficial date.
What is the best way to start a business listing?
Investing your own money in marketing your listing, which could be a waste of time. Opening your property up for multiple inspections, appraisals, and tours. Waiting an unclear amount of time for a bank to either approve or deny a commercial mortgage. Having to start over if a buyer backs out or can’t secure funding.
Can PropertyCashin buy a mechanic shop?
PropertyCashin can purchase any kind of auto repair shop, so you can call us if you’re looking to sell your mechanic shop or body shop no matter what.
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What to do without experience in automotive?
Without any experience in automotive you’ll want to be sure the shop is properly staffed. For example if the old owner did a lot of diagnostic work who does it now. If he writes most of the service, how does it now.
Do I need to be approved before buying a franchise?
If the business is a franchise, you’ll need to be approved before you purchase but should be able to receive training from them to get you started. There are some great training programs out there and I’d be happy to speak with you about your options when you’re ready.
Can inventory be cashed out?
Might look and sound great, but could easily be obsolete as most folks fixing to retire are not investing to update, and current inventory can be returned for credit, thus “cashed out” . You don’t want to go into hock buying gear that you may have to turn right around and replace
Lack of Owner Dependence Is Very important.
About The Building
- Having more than one bay and one lift per technician is important, since many times a vehicle is waiting on parts after being torn down, so it's important for the technicians to have more than one work space to move from job to job. Shops that do heavy line work, such as power train and transmission repairs, also are worth a higher multiple of SDE than shops that just do light duty w…
Auto Repair Equipment
- When looking at the equipment list of a business, make sure the equipment listed is making revenue. Excess equipment that is not often used may increase the selling price but not the profit. Typically a shop location is a large part of the valuation and marketability of the business. Large volume shops tend to get a larger multiple of SDE. If inventory is valued at less than 15% of the s…
Costs, Revenue & Employees
- A top tip for auto repair business buyers is to look for a business that has a service writer. Employee costs should be around 25%; often an owner can trim some fat to boost the business’ Seller’s Discretionary Earnings (SDE). If the business is an independent service repair shop, the percent to cash flow will normally be higher than if the busines...
Here Are Some Things to Look For
- Distinguish between Personal Goodwill that goes home with the owner at night (and might not transfer) versus Business Goodwill that will transfer to any Buyer.
- Are any customers tied to a key employee?
- Determine ratio of commercial accounts to retail.
- If the Seller has multiple shops the commercial accounts might leave.
Final Thoughts and Something to Consider
- A very good automotive repair business is difficult to replicate because of the time necessary to build a customer base. Today’s automotive technicians are very skilled people and very difficult to replace.
Establishing Your Needs
Doing Your Due Diligence
- After narrowing your search to, perhaps, a shortlist of 2-3 auto repair shops for sale that align with your preferences, it’s time to determine if they’re worth investing in, or if there are any hidden, unwanted surprises. Some items to pay close attention to as you research each business: 1. Are the premises appealing to you and would they be appealing to customers? Are they in a good st…
Getting Help from A Team of Pros
- Although this tip is listed third, depending on how comfortable you are handling the research discussed above, you may prefer to get a business broker or team of professionalsinvolved during the initial selection process, rather than waiting until you’ve already done your due diligence. The professionals you might need to consult during the buying process are: 1. An attorney familiar w…
Why Are They Selling?
- The first and the most logical question that you need to ask is why are they selling a profitable business, to begin with? Don’t get us wrong, there are so many legitimate reasons. They may be sick and tired of the industry and plan to switch to something else. They may have some personal issues, which is why they no longer have the time needed to micro-manage their business. An au…
What Are Your Needs?
- The next thing you need to ask is your specific needs. What kind of work do you expect to do in the business? Are you a mechanic yourself? If not, and are just looking for a place where to invest, this might not be the right industry for you. Do you want a specific location? Is there any type of work that you specialize in/prefer? If so, are there any businesses that follow these criteria? Mos…
Local Research
- The next thing worth taking into consideration is the local market, competitiveness and the reputation of the business. For instance, you may be dead-set on buying renowned auto service in Melbourne. In that particular scenario, the location is the immovable factor, while the rest is negotiable. This would mean that you have to look for local franc...
Help in Taking Over
- Taking over a business, even a successful one is difficult. A change of management may mean a new set of rules. Some of the mechanics working at the shop may leave or have a hard time adjusting to the new situation. This is why you need to be as considerate as possible and ask the previous owner what kind of help can you expect when first taking over the business. If buying a …
Previous Experience
- One of the most important things you need to take into consideration is your own previous experience. Did you ever run an auto repair shop of your own? Did you ever work in one? Now, working in an auto repair shop is not the same thing as running one but it may give you a general idea of day-to-day operations that take place there. Ideally, you would get in touch with someon…
Customer Reviews
- According to BrightLocal (2017) studies, we can say that 97% of clients use reviews to search for local services. Look for a place that has a good review and with a good amount of it you’re good to go. If not, you’re going to have a hard time fixing it and regaining the reputation you need. Doing this will speed up your growth and you will have a good customer base from start. Ask around i…
Location
- As for the location you might want to check the following items: 1. Foot Traffic and Accessibility: For most retail businesses, foot traffic is extremely important. You don't want to be tucked away in a corner where shoppers are likely to bypass you, and even the best retail areas have dead spots. You might wonder why a repair shop needs foottraffic. Firstly, your shop must be seen by …
in Conclusion
- At the end of the day, the role of a business is to a make profit. If you can make a profit, then the idea is viable from the perspective of a business. However, you also need to take other things into perspective. There are other ways to make money; other options to invest in. This is an industry that requires commitment and passion in order to maintain a certain level of quality of services. …