What Do You Need to Start Your Own Car Repair Business?

portrait of a plumber

Setting up your own car repair business is easier said than done. With the ever-changing technology that we have, repairing a vehicle can be tricky, especially when knowledge regarding cars is continuously changing. Right off that bat, investing in almost any type of business is virtually a life-long deal, and most of the time, it’s not going to go your way.

Like every type of business out there, you will have to invest in capital, equipment, and tools. Compared to other industries, there are some heavy-duty that might be necessary, such as mobile column lifts, which will come in handy if you need to look below your vehicle.

That said, different factors have to be kept in mind when setting up a business. But if you’re willing to take the chance, we’ll ensure that it’s a successful one, by the end of the day. We understand that you’ve been saving up for this type of business, and we’re here to help guide towards a successful venture.


Preparing for a business isn’t just something that can be done in a day. In some cases, you’ll need to think everything through, and this might last months to even years. For most people, investing in a business can be considered a lifetime experience, so it will need to be taken seriously.

Planning It Out

First thing’s first: having a clear plan is essential in almost any type of business. The success of your business is usually determined by mapping out and weighing in on the feasibility of your location, the industry, and several other factors.


As such, here are some questions that you might need to ponder on:

  • What are the startup cost and monthly expenditures? You will have to invest in capital and equipment in the first few months.
  • How much will you charge for your services? Having a reasonable price can entice even more customers.
  • Where will you be located? Will you be located near the highway were lots of cars will be able to see you?
  • Who is your target market? Specific demographics will prefer certain cars. For instance, Millenials are keener on using cars from Asian manufacturers.

It’s important to note that your startup cost will be much higher than your monthly expenditure. This is probably due to the cost of most of the equipment that you will need to buy at the beginning of your business.


For your business, it’s vital to hire employees that have years of experience in the industry. While it’s true that you can manage and conduct repairs on cars by yourself, having full-time and part-time employees in your business mean that you won’t have to be there all day. If possible, limiting yourself a managerial or supervisory position can reduce the amount of time and energy spent each day repairing vehicles.

Here are some questions that you can ask during the screening process:

  • How long have you been in the industry?
  • Do you have past references that I can contact?
  • How would you repair a vehicle in this specific scenario?
  • Do you have other commitments besides work?
  • What is your salary expectation for this position?

Run Down Of FeesMan fixing window

In an industry where you will have to tinker with mechanical equipment, having the tools of the trade is essential in providing quality service. But other than machines, you will also need to secure yourself a business permit, certifications, and insurance.

Here is a rundown of fees you might need to pay:

  • Business permit – Somewhere between $50 to $100
  • Automotive Service Excellence Certifications – $36 registration fee, $39 for additional certification. L1, L2, and L3 certifications will usually cost around $80.
  • Insurance – This will depend on your firm, but on average, you will need to spend $4,000 for each year.
  • Mechanical Column Hydraulic Lift– Depends on the quality of the lift. Usually, it’s $3,700 – $4,000.
  • Shop Rental – Only if you are renting, but the minimum cost is around $1,500.
  • Tools and machinery – $25,000

This will amount to around $40,000 in full in the first month of your business. It’s important to note that this does not cover your workers’ monthly salary and the maintenance of your facilities.

Overall, setting up your own car repair business is a worthwhile investment, but it’s a secure money scheme as most people think it would be. Although most people think running a business is a form of passive income, it’s still a lot of commitment, not just in terms of how much you’ll be investing, but it will take a right amount of your time, effort, and energy to make it successful.

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