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How Much Do Auto Repair Shop Owners Make in a Year?

Do you want to know how much money auto repair shops make in profit yearly? If YES, here is an analysis of the income potential of auto repair shops.

An automobile repair business is one very essential business in a city because people would always need to have their cars fixed when they have a breakdown. An auto repair business can prove to be quite successful if the owner delivers dependable vehicle repairs and high customer service.

This is very essential because the earnings of an automotive garage depends significantly on the amount of repeat business the garage can acquire.

Some auto repair shop owners work out of a home-based garage, which reduces overhead expenses and is convenient for family life. Others rent or buy work space in an industrial setting, where you will spend time away from home working in the garage or office.

Occasionally, auto repair owners build a business with more than one location, which could make for easy expansion. Owners of automotive garages do not necessarily need a college degree in automotive repair to work in the industry. However, they need experience in automotive repair and working knowledge of automotive systems.

Additionally, automotive garage owners must have some business knowledge to run the logistical side of operations. For example, owners must handle the advertising, accounting and managerial decisions of the garage. If the owner does not have some level of business knowledge, he might make poor decisions that affect the success of the company.

How Much Do Auto Repair Shop Owners Make Yearly

According to experts, the average annual salary of an auto body shop owner is $100,000, although this varies by region. As an auto repair shop owner, you should note that your income is likely to reflect the size and scale of your auto repair business. Business profitability and scale can also affect an auto repair shop owner’s salary even more than time on the job.

However, experience does influence income to some degree. Assuming a mechanic who owns her own shop is operating a business that provides an income on the higher end of the mechanic’s pay scale, one income projection looks like this:

  • 1-2 years: $54,753
  • 3-4 years: $55,434
  • 5-6 years: $56,687
  • 7-9 years: $58,312
  • 10 or more years: $59,721.

Another study estimated that the median annual salary for all automotive service technicians and mechanics is $39,550 as of May 2017, yet many auto repair owners are more experienced and may be more likely to earn incomes at the top end of the pay scale.

The top 10 percent earn more than $65,430, while the bottom 10 percent earn less than $22,610. The lower end of the pay scale is likely to represent what you could make while learning the trade, rather than what you will make as a shop owner.

An industry report from Body Shop Business Magazine gives the following average annual salaries for auto body shop employees:

  • Senior estimator – $59,000
  • Painter – $59,000
  • Metal Tech – $57,000
  • Mechanic – $51,000
  • Office Manager – $42,000
  • Entry level painter/tech – $32,000

According to the Bureau of Labor Statistics, the average hourly wage for automotive service technicians was $16.88 — approximately $35,000 per year — in 2008. However, automotive garage owners typically make more than the technicians in their employ, so the upper range of salaries in the automotive repair industry likely represent the salary of an automotive garage owner.

The average salary of an automotive garage owner increases if the shop specializes in a certain type of automotive work. For example, hot rod shops build custom vehicles for customers or repair existing hot rods. Automotive garage owners might make $100 or more per hour for their work on custom vehicles.

However, because parts for hot rods might be scarce and most work must be done by hand, automotive garage owners might spend part of their income on unforeseen problems in the build process.


The work week for an owner of an automotive garage is typically longer than the standard 40-hour week for most other employees. Automotive service demands many labor hours for the garage to be profitable. Additionally, the automotive garage owner must oversee the general operations of the business.

During the end of fiscal periods, for example, garage owners might spend much of their time organizing invoices and receipts for tax purposes.