What You Need to Know Before Buying an Auto Repair Shop for Sale

What You Need to Know Before Buying an Auto Repair Shop for Sale

Buying an auto repair shop is often a great move for those who are qualified and prepared. Auto repair shops are part of a thriving industry with a huge customer base. But how do you know if you’re qualified and prepared to buy an auto repair shop? Well, a lot of preparation is knowing what you’re getting into, so consider this your crash course on auto repair shops. Here is what you need to know before you buy an auto repair shop.

Financial Costs

Often the first thing a person wants to know about auto repair shops is how much it’s going to cost to buy one. First, there is no one answer to this. Different auto repair franchisors charge different rates for their franchises. Furthermore, the market in which you want to buy your auto repair shop will have a big effect on how much it costs. In bigger markets, real estate and advertising costs are generally much higher.

All in all, to buy an auto repair shop from a trusted and successful franchisor, and to get it up and running, will require a total investment of anywhere from $224,000 to over $400,000. But it’s not as though you need a briefcase full of bills to get started. Much of these costs can be financed, but you will need at least $66,000 in liquid capital for a small-market auto repair shop, to as much as $165,000 in other markets. You should have a net worth of at least $500,000 and liquid assets of at least $150,000.


Let’s not pretend that these are paltry figures. It costs a lot of money to buy an auto repair shop and to get it going until it becomes profitable. Not everybody has this kind of money and there are franchises in other industries that cost less. So why buy an auto repair shop? Because perhaps no other industry has franchises for sale that offer such a combination of stability and growth.

The automotive aftermarket is comprised of all transactions concerning automobiles after initial sale. Auto repair shops make up a huge portion of this market which is worth between $700 billion and $1 trillion (USD) globally. This number is predicted to hit $1.4 trillion by 2024, so not only is this market booming but it’s growing. The causes for this growth are population increase and the fact that, at 11.5 years, the age of the average American vehicle is at an all-time high. Older vehicles require the services of auto repair shops more than newer vehicles do and this means more business for auto repair shops. What does this mean for you if you buy an auto repair shop? The average individual shop can make almost $1 million in gross sales once they establish their business, provided, of course, that they buy from a good franchisor.

Auto Repair Shop Franchisors

You want to buy an auto repair shop from a franchisor who will guarantee you a protected territory, who will provide you with training and guidance, and who can get you high quality parts at low costs. Tuffy Tire & Auto Service can do all these things and more. To learn more, please contact us.