How do I check an auto repair shop’s lifts and diagnostic tools before buying?
Have a qualified inspector look at each lift, and ask for inspection and service records. Test the diagnostic tools on a real vehicle, and find out whether their software subscriptions transfer. Confirm which equipment is owned outright and which is leased or financed.
Begin with a list of every major item: lifts, alignment gear, tire machines, compressors, scan tools and specialty tools. For each, ask the age, the maintenance history, the last inspection and whether it is owned, leased or tied to a loan. A lien on equipment can follow it into your hands, so ask your lawyer how to check and clear that.
Lifts are a safety matter. Ask for inspection reports and have a competent inspector look for wear, leaks and damaged locks. A lift that fails is dangerous and expensive to replace, and the cost may belong in your negotiation. Ask the mechanics which equipment they trust and which they avoid.
Diagnostic tools are often software. Many need ongoing subscriptions or vehicle-specific updates, and the licence may be tied to the seller. Ask what must be renewed, who holds the account and what happens when ownership changes. Try each tool on a vehicle and see how current it is. Finally, think about the tools that technicians own themselves, which stay with them if they leave. Ask the mechanics which tools they reach for daily, since a tool nobody uses tells you little about the shop’s real capacity.
Key takeaways
- List every major item with age, condition and service history.
- Have a competent inspector check the lifts for safety.
- Confirm software subscriptions and licences will transfer.
- Check for leases or liens, and remember technicians’ own tools stay with them.
Related reading
15 pages on the same subject, grouped by topic.
Due diligence
- GuideAuto body and collision repair shop due diligence
- GuideAuto glass repair and replacement shop due diligence
- GuideDue diligence on an auto repair business
- ChecklistAuto repair business buyer checklist
- GuideDue diligence on a franchised auto repair shop
- GuideDue diligence on an independent auto repair shop
- Expert answerHow do I review a body shop’s average repair cycle time before I buy?
- Expert answerWhat should I know about a roofing company’s dumpster and lift equipment?
Buying
- Expert answerCan I buy an auto repair shop if I’m not a mechanic?
- GuideBuying a franchised auto repair shop in Canada
- GuideBuying an auto body and collision repair shop in Canada
- GuideBuying an auto glass repair and replacement shop in Canada
- GuideBuying an auto repair business in Canada
- GuideBuying an independent auto repair shop in Canada
- Expert answerWhat should I ask about a garage’s reliance on a single dealer-supplied scan tool subscription?
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentEquipment valuation: How to do it
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Business Development Bank of CanadaGovernmentMajor pitfalls to avoid when negotiating a purchase agreement
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