Should I buy an existing auto repair shop or start one?

Both routes can work, and neither suits everyone. A start-up gives you control and a clean slate, while a purchase gives you something that already runs. This page sets out the trade-offs in a repair shop so you can weigh them against your own situation. It does not tell you which to choose.

Space and landlord

A repair shop needs bays, doors, drainage and a landlord who accepts the use. Finding that space can take time. An existing shop has already solved this, though you must still check the lease, whether the landlord must consent to a change of tenant and how long the term runs. Ask your lawyer to review it before you commit.

Hoists and diagnostic tools

New equipment gives you a known age and often a warranty. Inherited equipment saves cash but may be worn or out of date. Have it inspected, as described in checking hoists and shop equipment before buying. Also ask what the diagnostic software needs to keep working after the owner changes.

A crew from scratch or an existing one

Skilled technicians can be hard to find. Hiring a team for a new shop means recruiting, training and building trust. An existing crew comes with the shop, but only if they choose to stay. Meet them and ask the seller how long each has been there.

Customers and goodwill

A new shop must earn every customer. A purchase may come with repeat customers, fleet accounts and service records, although these only carry value if they stay. For a general comparison outside repair shops, see buying a business versus starting one.