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Auto Repair Business

Top Four Reasons to Buy an Auto Repair Business in California

Learn the top four reasons why we think buying an auto repair business in California can be a lucrative business venture.

The auto repair market is a growing industry, worth over $80 billion in 2023! This is great news for entrepreneurs looking to buy an auto repair business, but it’s important to remember that every industry will experience rapid changes, and auto repair shop owners should pay close attention to automotive technological advancements.

Nonetheless, we’ll list the top four reasons why investing in this industry is a practical decision.

It’s a good source of income

You may be wondering if an automotive business is profitable. The short answer is yes, it can be. Profit margins for an auto repair shop range between 50 – 60% for labor and around 20-28% for parts. However, it’s important to note that there has been a significant shift in the parts to labor ratio, which has impacted gross profitability of the industry.

This brings new challenges to auto repair business owners, so it’s important to develop strategies to increase sales, decrease overhead expenses, and make accurate financial projections. This will help you maintain profitability and remain relevant in a competitive environment.

It’s a necessary service

An obvious benefit to buying an auto repair business is that vehicle owners need your service. California has the highest resident population in the US, with over 30 million vehicle registrations recorded in 2019. This number continues to grow.

Likewise, improved technology has increased the lifespan of automobiles, which means the need for repairs and maintenance will increase. Also, the average consumer is more likely to consider paying for repairs more economical than buying a new car.

You’re in control of your professional career

As an auto repair business owner, you will have the freedom to decide when you work. While operating during normal business hours is advised, you can remain flexible. This means you’ll have time to focus on your personal goals, family or downtime.

You can also have autonomy over how to run your auto repair business. If you need to boost profit margins, you can cross-promote and upsell some services. If you need to ramp up your marketing efforts, you can invest more into social media promotions or rewards programs.

Opportunity to become a market disruptor

With emerging technological advancements like battery electric vehicles (BEV) and advanced driving-assistance systems, the auto repair market is heading into a new, transformative era. For some, this may seem be a threat, but for others, it is an exciting opportunity to become an innovative disruptor – particularly through customer experience.

To prepare for these changes, small business owners need to offer a ground-breaking customer experience to grow their auto repair business. A new generation of vehicle owners prefer an omnichannel experience and customization. Therefore, it’s crucial that you provide solutions through:

  • Integrated, digital updates
  • Optimized and real-time scheduling
  • Offer at-home or remote services
  • Personalized services

How can support you

We hope this article has been helpful in demonstrating why buying an auto repair business in California can be a smart decision. If you’re confident in this pursuit, it’s important to stay up to date with changing technological and consumer trends, and how these will impact the auto repair industry.

We understand that buying a business can be a challenging venture, so we recommend reading our buying a business guide for more information on the process.

Now, it’s time to discover auto repair businesses for sale in California on our site, and begin your journey into business ownership.

Megan Kelly

About the author

Megan is Head of Content Marketing at She is a B2B Content Strategist and Copywriter. She has produced multiple articles that rank on the first page of Google SERPS, and loves creating people-first content.