What should I check when a gas station I might buy has service bays?
Treat the service bays as a repair business inside the station. Find out who runs them, whether a qualified mechanic they depend on will stay, who owns the hoists and tools, what the bay’s repeat customers look like and which supplier accounts and warranty claims come with it.
Some stations have one or more repair bays beside the pumps and store. Those bays work like a small garage with its own staff, tools, customers and risks. A buyer who looks only at fuel and store sales can miss how much the bays add, or how much they depend on a single person. Give them their own review.
Who runs the bays
Ask whether the owner, an employed mechanic or a tenant operates the bays. If a tenant does, ask for the lease or licence and read what happens when it ends. If an employee does, ask about that person’s plans. Many bays rest on one qualified mechanic, and if that person leaves after closing, the bays may have to close. Ask early whether the mechanic would stay, and on what terms.
Tools and equipment
Ask for a list of hoists, compressors, diagnostic tools and specialty equipment, and who owns each item. Some belong to the station, some are leased and some may be the mechanic’s own, which means they could leave. Ask for service records, and have a qualified person look at older equipment. Then add up what it would cost to replace what is missing or worn.
Customers, repeat work and comebacks
Ask whether the bays keep a customer list, and how much of the work is repeat business. Ask how warranty comebacks and complaints are handled, and whether anything is open. Check the supplier accounts for parts and the arrangement for waste oil and other materials. Your lawyer can tell you which workplace or trade rules apply, so ask rather than assume.
Questions for the seller
- How do bay sales and costs show up in the books?
- How long has the current mechanic worked here?
- Which jobs bring the most repeat customers?
- Do the bays share staff or space with the store?
Related reading
11 pages on the same subject, grouped by topic.
Buying
- Expert answerHow do I check a gas station’s fuel and store sales separately?
- Expert answerHow do gas station owners make money: the fuel or the store?
- Expert answerWhat should I look for when I visit a gas station I might buy?
- Expert answerBuying a gas station with the property or on a leased site: what changes?
- Expert answerHow can I grow a gas station business after buying it?
- Expert answerWho should help me buy a convenience store?
- Expert answerWhat running costs should I check before buying a convenience store?
- GuideHow to buy a gas station in Nova Scotia: licences, ownership rules and what transfers
- Expert answerHow do I review the help desk call logs of a payroll company I might buy?
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentUnderstanding post-merger operational integration
- 03Business Development Bank of CanadaGovernmentHow to reduce employee turnover
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