What should I ask about fleet accounts when buying an auto repair shop?

Start with a list of fleet customers: what vehicles they run, how often they come in and how much of the shop’s work they supply. Ask whether the arrangement is a signed agreement or a habit. A handshake account can end on the day the fleet manager changes, so ask how long the contact has been the same person.

Look at the terms. Fleet work may come with negotiated labour rates, parts markups, priority booking or slower payment. Slow payment affects cash, so ask for the aging of what fleets owe now. Ask if the account requires certifications, insurance or records the shop must maintain, and whether it allows a change of ownership.

Then ask about the people. Is the fleet loyal to the shop, to the service writer or to one technician? Ask whether the fleet manager would meet you before closing, with the seller’s consent. Ask what would make them leave. If most of the fleet work is performed by one technician, tie this question to your plans for keeping that person. Ask also whether the fleet shops around, and how often other garages have bid for the same vehicles.

Key takeaways

• List fleet customers with visit frequency and share of work.
• Find out whether each account is signed or informal.
• Check payment timing and amounts currently owed.
• Ask who holds the relationship and whether it survives the sale.