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How much does it cost to start a car repair shop

How much does it cost to start a car repair shop - The total cost of starting an auto repair shop varies between $1000-1500, depending on the tool you will choose. For example, specialized tools will cost more than getting basic tools. - If you manage to run a car repair shop, the profit potential is huge! 

How much does it cost to start a car repair shop

Opening your own auto repair shop is everyone's dream. After all, the auto repair industry has experienced steady growth in recent years.

The demand for automotive repair services is increasing along with the increase in car sales. But setting up your own car repair business is no easy feat.

In fact, starting your own auto repair shop from scratch costs money. But how much does it cost to build an auto repair shop?

So in today's post, we'll cover the average costs of setting up your own auto repair business. Having a baseline figure for the costs you will incur will assist you in taking the appropriate action to meet your financing needs.

However, the profit potential of auto repair shops varies with many different factors such as scale, location, team qualifications, auto repair costs and capital budget.

Car repair services are required year round and not seasonal. This is also why mechanics often turn to auto repair shop owners.

But for a smooth transition to becoming a mechanical repair shop business owner, it's also important to understand the various costs your business will incur.

Use cost estimates to budget your business, plan financing needs, and build a comprehensive business plan .

Understanding the Cost of Building Your Own Auto Repair Shop - It can be difficult to know the right starting point for an auto shop. But once you decide to take the plunge, it's time to sit down and break down the cost structure. Below, you'll find some of the basic components of a repair shop owner's fee.

Here are the costs to start a car repair shop

1. Automotive Repair Tool

If you have decided to open your own auto repair shop, you should start by making a list of the small automotive repair tools you will need.

  1. Screwdriver Set ($50)
  2. Hammer ($20)
  3. torque wrench ($75)
  4. Ratchet wrench ($75)
  5. Hexagonal lock ($30)
  6. Impact wrench ($300)
  7. Oil filter wrench ($20)
  8. Oil drip pan ($20)
  9. Bolt extractor ($20)
  10. Pry bar ($20)
  11. Cordless drill ($100)
  12. Fuse ($20)
  13. Electrical tape ($5)
  14. Deputy handle ($30)
  15. Tang ($20)
  16. Small butane torch ($20)
  17. Allen and torx bit ($20)
  18. Funnel ($10)
  19. Bench Vise ($60)
  20. Jack stands ($100)
  21. Ramps ($100)
  22. Battery charger and jumper ($200)

Along with the tools you can see the tentative costs for each. The total for this amounted to $1335. However, it is important that you first understand the scale of your auto repair shop and then decide on the necessary tools. Larger auto repair shops with more specialized services will require more equipment and supplies. For example, if you plan to offer air conditioning services, you will also need to purchase an air conditioning machine.

For a medium-sized car repair shop, you will need to get:

  1. Jack ($200)
  2. Air compressor ($200)
  3. Workbench ($300)
  4. Toolbox ($500)
  5. Diagnostic engine and OBD ($4,000)

This will be an addition to our previous list. So this means for a medium business, your budget should reach $6000-7000.

And if you are planning to set up a large-scale car shop, you will also need to purchase the following equipment:

  1. Hydraulic lift ($3,000)
  2. Crane ($500)

This means that to set up a large-scale car shop, it costs about $10,000.

Apart from equipment, you will also need to purchase garage equipment for your auto repair shop which includes:

  1. First Aid Kit ($30)
  2. Gloves ($30)
  3. Boots ($150)
  4. LED Headlights ($30)

This is another cost of around $200-300.

When purchasing your equipment, remember to choose a quality supplier. Customers also rate the store's credibility and reliability on their equipment and supplies. 

Auto Repair Equipment - You will also need to purchase parts and supplies for your auto shop. You need to keep an inventory of auto repair parts to perform your repair services effectively.

The estimated cost required to purchase your supplies and parts is approximately $5500. Supplies and inventory are another important item in your start-up costs, as they are needed to make repairs.

Here is a list of some of the supplies you will need for your store:

  1. Oil for oil change
  2. cleaning fluid
  3. Air conditioner
  4. radiator fluid
  5. Transmission Fluid
  6. Power steering fluid
  7. brake fluid
  8. Multipurpose Cleaner
  9. Brake Cleaner


You need to pay around $50,000 to open your own auto repair shop. This includes the cost of equipment, supplies, business costs, marketing, and human resources.