Why Buy an auto Repair Shop?
Auto Repair Produces a Good Constant Income
The auto repair industry is uncommon in the sense that it manages to maintain a constant demand of business regardless of the economic situation. This is simply because when economy is strong, new and used car owners will look for their local repair shop for cheaper and more convenient maintenance on their vehicles, and when economy is not as good, car owners will keep their cars for longer, generating more need for repair shops.
Lower Purchase Price
Franchises, although very popular, tend to be a bit more costly for buyers, sometimes costing 2-3 times the average owner’s cashflow, where auto repair shops cost much less. This may be due to less buyers being interested in acquiring a repair shop, or because it is not typically a highly competitive industry per area such as restaurants or others.
Less Overhead and Cost
One of the main advantages to owning a auto repair shop is the fact that it does not require a big amount of monthly cost and overhead that may affect cashflow. Parts and tools are relatively inexpensive for most services, and parts can be requested per request.
With an increasing number of cars on the road as they become more easily financially accessible, the auto service industry promises a long and healthy life ahead. There are an estimated 247,000,000 vehicles registered in the United States, and that number increases annually.
Another important factor is that with the improvement of automotive technology, car owners are keeping their cars for longer periods of time on average, which means more maintenance and small repairs needed. This recurring influx of business is essential for auto repair shops, especially if they are loyal customers.
Positive Competitive Landscape
With the rapid conversion to internet business in the last 10-15 years, many businesses have seen a drastic change in sales and have had to re-structure their business model to adapt to the modern online era. This is not the case for auto repair shops, as of course, it requires manual work on automobiles. Also, there has been an decrease of business for auto dealers for service repairs and maintenance, as their prices are higher than average due to high overheads and cost.
Personal Time and Life
If you’ve owned a business, you know that it can take a toll on your personal life and family, particularly for high-demand industries such as restaurants and others. Auto repair shops allow for operating hours that are easy to manage and don’t take away your personal time. Most shops operate during regular business hours and close on Sundays. This is great for any business owner with a family.
You Don’t Need to be a Mechanic
Every business requires operations management, but that job can sometimes overlap with the responsibilities of the service provided. This is not the case for repair shops, where most services are small maintenance and quick repairs, which allows for less staff and less salary. You don’t need to be a mechanic as a business owner, as you can dedicate the majority of your time to managing the operations and other aspects of the business (if you intend to manage it, of course).
Why Jan Wild?
If you are interested in buying an auto repair shop, contact Jan Wild for professional help with over 35 years in the industry. Jan will help you find a smart investment that makes sense for you.