Profits and Costs of Auto Repair Shops

Owning an auto body or repair shop can be a profitable endeavor, especially since it is something that cannot go “out of style” and it is something needed year-round not seasonally. For many auto shop owners, they began as mechanics and eventually decided to transition to the owner, starting their own shops. In order to make that a good transition though, you need to be not just a good mechanic, but also a good business owner. Understanding the business side is vital to making an auto shop thrive.

The overhead prices will, of course, vary from shop to shop, but the cost to start an auto shop will be between $10,000 and $20,000 per month. While the costs to start an auto shop will vary, according to this article, the general costs include:

• Business License: $50 to $100
• ASE Certifications: $36 registration fee, one time, plus $39 per certification, except L1, L2, and L3 certs which are $78
• Insurance: $4,000 per yera
• Mechanic’s Hydraulic Lift: $3,700
• Diagnostic Machine: $5,000 to $10,000.
• Shop Rental Fees: $1,500 to $15,000 per month
• Mechanic’s Toolset with Specialty Tools: $15,000

Total Cost: $50,000+