Should I buy an existing oil change shop or start one?
Buying an operating oil change shop gives you a site, a crew and customers who already have the habit; starting one means choosing a lot, building bays, hiring and waiting for traffic. Which suits you depends on your time, capital and tolerance for ramp-up. Ask a seller or franchisor what each path involves.
Both paths end with a working shop, but they ask different things of you. Buying means paying for something that already runs and inheriting its habits, good and bad. Starting means building the site and the customer base yourself, which takes longer before the first steady month. Neither is the safer choice in general. It comes down to what you can fund and how long you can wait.
What an operating shop gives you
An existing shop has a location people already drive to, bays that are set up, a crew that knows the work and a base of repeat customers. Ask how long the current crew has stayed, how much business comes from repeat visits, and what equipment is near the end of its life. The aim is to know what you are inheriting before you commit.
What building one involves
Starting from nothing means choosing a lot with good traffic, building or converting a space with pits or lifts, hiring and training, and then waiting for customers to find you. Whether the site can be used this way is a question for your lawyer and the municipality, not something to assume. Plan for months in which the shop is open but not yet busy.
What to ask in each case
- To a seller: why they are leaving, how the lease or site works, and what will they help with after closing?
- To a franchisor: what does the system require of a new site or a transferred one, and what support is there?
- To yourself: can you cover the shop through a slow start, and who will run the bays day to day?
A similar question for the wider trade is covered in buying an existing auto repair shop or starting one.
Related reading
12 pages on the same subject, grouped by topic.
Buying
- Expert answerShould I buy an existing auto repair shop or start one?
- Expert answerFranchised or independent auto repair shop: what changes for a buyer?
- GuideBuying a franchised auto repair shop in Canada
- Expert answerCan I buy an auto repair shop if I’m not a mechanic?
- Expert answerHow do I find an auto repair shop for sale near me?
- Expert answerHow do I check hoists and shop equipment before buying an auto repair shop?
- Expert answerWhat should I track in my first year running an auto repair shop?
- Expert answerWhat should I ask about a collision shop’s reliance on one paint supplier?
Financing
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03FuturpreneurCompanyStartup program
- 04Mr. Lube + TiresCompanyAuto Franchises and Oil Change Franchises | Owning a Mr. Lube Franchise
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