For sale is one of Southeast Minnesota's most trusted family auto care centers. Drawing customers from a 30 mile radius, the company provides comprehensive diagnostic, repair and maintenance services for cars and trucks. This business differentiates itself by offering exceptional customer service and competitive rates in a convenient location.
Included in the asking price is the real estate (20 car parking and 3,500 sq ft building, up to 8 stalls) located on a busy intersection in a growing community, all equipment needed to run the operation, and a normal amount of inventory. The company currently employs 3 full time techs and one full time office manager, in addition to the owner.
Auto mechanics provide mechanical and electrical repair and maintenance for a variety of vehicles, including cars, trucks, vans and trailers. This industry has largely experienced healthy growth as the number of vehicles on the road has expanded, along with the average age of the vehicle fleet. The Auto Mechanics industry is anticipated to continue gradually recovering from setbacks experienced following the COVID-19 pandemic and experience steadier revenue growth. The industry will benefit from recovering economic conditions over the next five years, resulting in positive trends as rising consumer spending will encourage spending on repairs.- IBIS World
- Asking Price:
- $600,000 Furniture / Fixtures and Inventory / Stock included
- Sales Revenue:
- $749,750
- Cash Flow:
- $150,538
Property Information
- Real Estate:
-
Real Property Included
- Premises Details:
-
Facilities are adequate for current operations. There are 4 garage doors and room for 6-8 mechanic bays depending on setup. Building is approximately 3,500 sq ft total, 3,000 sq ft shop space, 500 sq ft office space. Parking for approximately 20 vehicles.
Seller would entertain leasing the property, but selling the property with the business is preferred.
There is additional real estate owned by the seller next to the property if a new owner wants more lot sq ft for expansion or additional parking.
Business Operation
- Expansion Potential:
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Ideas to increase sales include: 1) advertising, 2) offering fleet services to local businesses, and 3) adding lifts and techs.
- Competition / Market:
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Auto mechanics provide mechanical and electrical repair and maintenance for a variety of vehicles, including cars, truck and vans. Over the five years to 2023, the industry had a moderate decline. Though the number of vehicles on the road has expanded, along with the average age of the vehicle fleet, a decline in consumer confidence can make consumers postpone car repair and maintenance services. Revenue growth was significantly disrupted in 2020 by the COVID-19 pandemic, as a sharp decline in total vehicle mileage reduced the need for car repairs overall. Even as revenue quickly recovered, it couldn't reach pre-pandemic levels. Overall, industry revenue is expected to decline at a CAGR of 0.8% to $76.8 billion over the five years to 2023, including an increase of 0.8% in 2023.
Following the onset of the pandemic, a rising unemployment rate, work-from-home policies and reduced travel resulted in a substantial decline in total car usage. While these trends have largely reversed, enabling industry revenue growth, auto mechanics contend a new set of challenges in 2022. Labor shortages, supply chain disruptions and inflationary pressures have constrained growth in the average industry profit margin as both wage and equipment costs rise. Labor shortages in the industry were prevalent prior to the pandemic, contribution to low pay and a generational shift away from trades. Persistent labor shortages post-pandemic has led wages to rise over the past five years, limiting profit growth.
Over the five years to 2028, the industry is anticipated to grow as it continues to gradually recover from setbacks experienced amid the pandemic. As total vehicle mileage continues to rise, demand for auto mechanics is anticipated to increase as greater vehicle mileage coincides with more wear-and-tear on vehicles. Rising interest rates may benefit the industry, as a higher interest rate increases the cost of a car in the long term, encouraging many consumers to repair versus replace vehicles. In all, industry revenue is anticipated to rise at a CAGR of 2.0% to $84.6 billion over the five years to 2028.--IBIS World
- Reasons for selling:
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Owner wishes to retire.
- Trading hours:
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Monday-Friday 8am-5pm
- Employees:
- 3 FT
- Years established:
- 22
Other Information
- Support & training:
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Will train for 2 weeks @ $0 cost.
- Owner financing:
- Owner financing is available. Please contact the seller for more information.
- Financing available:
-
$540K down/$60K over 60 mos. @ 9%.
- Furniture / Fixtures value:
- $66,900 - included in the asking price
- Inventory / Stock value:
- $5,000 - included in the asking price
