Do you want to start a mechanic shop and want to know the cost? If YES, here is a cost breakdown for opening a mechanic shop and the profit margin/ROI.

The Auto Mechanics industry is amongst the profitable and easy to setup auto services related business ideas that an entrepreneur who is a trained mechanic can successfully start. Car repair is one business that never goes into extinction because daily, fleets of cars get added to the garages of people, so whether it is a brand-new car or a fairly used one, you can be sure that sometime in the future, car repair would become inevitable.

The Auto Mechanics industry provides mechanical and electrical repair and maintenance work on cars, trucks, vans and trailers et al. Players in this industry include self – employed mechanics, auto repair shops, garages and car care centers established by automobile manufacturing companies.

It is important to state that the auto repair industry does not include car dealerships, auto parts retailers or gas stations that provide industry services. So also, the industry services do not include auto bodywork, car washes, oil changes or air conditioning repair.

The Estimated Cost Breakdown to Open a Mechanic Shop

When it comes to opening a mechanic shop, the major areas that you should look towards spending the bulk of your cash is in renting or leasing a standard facility, converting it into an auto mechanic repair garage and equipping the garage with the needed equipment, computers and receipt issuing machines, Point of Sale Machines (POS Machines), CCTV Cameras and compete set of tools.

Aside from that, you are expected to pay your employees, pay utility bills and stock up on inventory. These are the key areas where you are expected to spend your startup capital on;

  • The total fee for registering the business in the united states of America – 0.
  • Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
  • Marketing promotion expenses for the grand opening of the auto mechanic repair shop in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • The total cost for hiring a business consultant including writing a business plan – $2,500.
  • The total cost for the purchase of insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
  • The cost for renting or leasing a space or warehouse that will be converted into the auto mechanic repair shop and that can accommodate the number of cars per time (Re – construction of the facility inclusive) will cost – $120,000.
  • Other start-up expenses including, commercial satellite TV subscriptions, stationery ($500) and phone and utility deposits ($2,500) – $3,000.
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
  • The cost for start-up inventory (stocking with parts, engine oil, break fluid, gear oil and other related supplies that are used daily in an auto mechanic repair shop) – $35,000
  • The cost for the purchase of storage hardware (bins, rack, shelves, case) – $3,720
  • The cost for counter area equipment (counter top, receipt issuing machine, etc.) – $9,500
  • The cost for store equipment (cash register, security, ventilation, signage) – $4,750
  • The cost of purchase and installation of CCTVs: $2,000
  • Equipping the auto mechanic repair shop (with Air Compressor. Tire Inflator with Gauge. Impact Wrench. Impact Sockets. Digital Caliper. Female Torx Set, Jack, jack stands, and pole jacks, Oil drain and oil caddy, Battery charger and jumper, Engine hoist, Brake lathe, Strut compressor, Air conditioning machine) will cost – $120,000
  • The cost of launching a website: $600
  • Miscellaneous: $2,000

From the rough estimate as listed above, you would need a minimum of three hundred and fifty – six thousand and one hundred USD ($356,100) to establish a medium – scale but standard auto mechanic repair shop – business in any city in the United States of America. Please note that this amount includes the salaries of all the staff for the first three months of operation.

In Conclusion,

Please note that this is a rough estimate and we usually advise our readers who are interested in opening an auto mechanic repair shop to go to the market or directly contact wholesalers and suppliers of the types of tools and related gadgets they want to have in their auto mechanic repair shop in order to get the real time prices of these items.

The truth is that if you are a good bargainer, you can get a better deal that will help you beat down the estimated price as listed above.

Solomon. O'Chucks