How Much Does it Cost to Start an Auto Repair Shop

startupThe demand for auto repair shops is growing as people look not just for repair services but specialized car care and aesthetic services. Most people who have ever worked in an auto repair shop end up opening their own while others go to school to acquire the required skills to operate the shop. It’s important to have an idea of how you will run the business, how to attract big customers with fleets of vehicles such as and where the money will come from. How much will the entire process cost? A number of factors will determine how much it will cost to open the shop. Here are some of the considerations?


The premises

It is possible to start the business from your garage then hire a shop once the business is doing well. This is great for those who want to start small because of cash constraints. However, before doing it, check whether such operations are allowed in your area and whether you need to get a special license to operate from your house. If you intend to hire space, the size and location will determine the cost. You may find a cheaper space in an area offering little business while another highly priced premise in a busy area.  Saving on the cost of space will also mean getting less business.

The Equipment

You can start with the basic then expand as the business grows. If you are starting a specialized repair shop, you will require special equipment. The basic tools you should have include a diagnostic machine, lift, and other smaller tools. If you decide to work on any type of vehicle regardless of the size or make, you will need to have suitable tools to do the job.

The Legal Requirements

legalYou will have to register the business with the necessary bodies,  get permits, licenses, and insurance. All this will cost some money. Before starting the process, talk to those who have auto repair shops in the area to understand the requirements and cost. Find out whether all the workers will have to be insured. Also, which skills should you possess? Do you need to go back to school to attain this? Some car manufacturers may require you to attain some set of skills before you work on their brands.





You may run the shop alone then hire workers progressively. Alternatively, you can start with few specialty workers depending on the services you intend to offer. This means you need to have money for salaries and any work-related needs the team may have. For instance, you may offer them tea and snacks, work uniform and protective gear.

Because you do not expect the business to start generating good money immediately, you will need to keep some money aside for the recurring expenditure such as rent, salaries, and utilities. Also make sure you give marketing a top priority because the more you spread the word and offer quality, satisfactory services, the faster the business will grow.




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