There are many reasons you might want to sell your auto repair shop.
You might be ready for another venture; you might be trying to fund your retirement; or you might just be curious about the value of your business if you do decide to sell.
Whether you're actively in the market to sell your shop, or you just want to know how to value an automotive repair shop just in case, you’ve come to the right place.
How to value your auto repair shop
The industry standard for establishing a sale price for an automotive repair business is to use total owner benefit (TOB) multiplied by four (or TOBx4).
So, if you took home an average of $50,000 a year for the past three years, the price of your business will likely be valued around $200,000. Keep in mind this TOB value does not include property value.
For those who are reading this with the hopes of selling in the near future, that valuation method might seem low to you. And it is.
The good news is that you can go above and beyond the industry standard, and sell your shop for a higher value, if you stay on top of your numbers.
Not only will diligent reporting and good customer service increase your TOB, but you’ll also have more leverage when negotiating offers from buyers.
Here are three steps you can take to improve the valuation of your business and secure the money that you worked hard to earn.
Selling your automotive business
1. Be Tenacious About Gross Profit Margins (GPM)
The old business adage said it best: “It’s not what you make, it’s what you keep.”
Potential buyers know the ins and outs of how to value an automotive repair shop that’s on the market. They’ll want to see what your shop’s gross profit margins (GPMs) are, not your shop’s revenue.
Your shop’s gross profit margins will give them an idea of what you were able to take home—and by extension, what they can expect to be able to take home if they go through with the purchase.
Here are some strategies to start increasing your GPM today:
Increase prices on your parts or labor. A parts matrix and a labor matrix that’s built into a cloud-based shop management system can help you mark up your prices without sticker-shocking your customers.
Ensure all cores and unused parts are returned. Reports within a shop management system, such as Tekmetric’s Parts Purchased Report and Parts Usage Report, can give you a clear picture of how much you’re spending versus how much you’re using.
Cease ineffective marketing campaigns. Tracking the ROI you’re getting from various marketing campaigns by having your service advisors track marketing sources on each repair order can help you pinpoint what’s working and what’s not so that you can put your money where it will yield the best results.
Tekmetric’s various built-in reports can give you a clear picture of what your margins are, so you can keep adjusting your strategy to get even better margins that will impress prospective buyers.
2. Increase Your Average Written Repair Order (AWRO)
In the majority of cases, your AWRO can and should be higher than you think.
Let’s do some quick math. It costs drivers an average of 10 cents a mile to maintain their vehicles. If someone drives 15,000 miles a year, and each mile costs them around 10 cents of wear and tear, that person is looking at $1,500 in repairs each year.
Even if we stay on the conservative side, that person is looking at spending $1,000 on annual maintenance.
When you consider how often each customer visits your shop annually, do those numbers sound in line with your shop’s current AWRO?
By running thorough inspections on each vehicle, your technicians can catch all potential issues, including budding issues that will need to be addressed down the line.
Digital vehicle inspections encourage technicians to give customers a holistic overview of which issues need work immediately, which issues will need work soon, and what’s good as-is. And with these more thorough inspections, your service advisors can maximize their AWRO.
Be careful not to prioritize a high AWRO at the expense of customer trust. One great way to balance AWRO with customer trust is by showing customers what work needs to be done ASAP, and what work can wait.
3. Work to Maintain an Excellent Social Reputation Everywhere
Prospective buyers are going to look at your ratings on various platforms, including Google, Facebook, Yelp, Better Business Bureau, Indeed, and Glassdoor.
Why?
Because buyers want to invest in a shop that has a strong social reputation among customers and employees, and by extension, the broader community.
Buyers might feel uneasy purchasing a shop with bad ratings. They might back out of the sale, or even try to pay less for the purchase, citing the low ratings as a reason why.
But when you have high ratings on these platforms, you’ll have more leverage to negotiate a higher price.
FAQ
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Mechanic interviews are challenging for both the employer and candidate because the right candidate has to be a fit in personality and technical ability. Plus, the numerous certification types, manufacturer nuances, and shop needs make it even more challenging.
This guide can be used to help repair shops/dealerships ask the right questions and also help technicians be prepared for questions they will likely encounter. Below you will find the most common car mechanic interview questions broken down by mechanic and service advisor level plus tips to ace your next interview.
Top mechanic job interview questions
While every auto repair shop differs in how they run their job interview process, these are some of the most common questions you can expect. Ranging from technical questions to customer service, be prepared to answer these common questions before your next interview.
General interview questions for car mechanics
These common questions cover basic automotive repair experience and relevant work history.
Tell me about yourself and your experience as an automotive technician.
Why do you want to work for our company/shop?
How do you stay up to date with new automotive technologies and repair techniques?
What certifications do you currently hold (ASE, manufacturer-specific, etc.)?
Are you comfortable working weekends, evenings, or overtime if needed?
Technical interview questions for mechanics
These technical interview questions cover more specific hand-on experience and tools/equipment.
Which repairs are you best at?
How much would you estimate your tool inventory to be worth?
What steps do you take when diagnosing a check engine light?
What tools and diagnostic equipment are you most familiar with?
Have you worked with hybrid or electric vehicles?
Do you believe in factory recommended vehicle maintenance intervals?
How comfortable are you with OEM scan/diagnostic tools?
Experience & situational questions for mechanics
These questions help employers understand how you would handle various shop situations and also helps them understand your communication skills.
Can you describe a time when you had to work under a tight deadline?
How do you deal with angry customers?
How do you prioritize tasks when you have multiple vehicles to work on?
What would you do if you made a mistake on a repair? How do you handle accountability?
What do you do if you encounter a vehicle with an issue you've never seen before?
Additional questions to expect
Are you comfortable serving those in need once a month?
Are you comfortable doing a DVI on the majority of vehicles you touch?
How do you handle a high-pressure environment when the shop is busy?
How do you handle a situation where you're unsure about how to fix a problem?
Tell me about a time you went above and beyond for a customer?
Top interview questions for service advisors
While the interview questions for service advisors will be similar to mechanics, there will be small differences. Typically, service advisors will be more customer facing and shops will tailor their questions to focus more on customer service and communication style.
General interview questions for service advisors
Are you comfortable selling repair services?
Are you comfortable working on a commission based salary structure?
Who do you believe has the best after market products?
How do you deal with a customer saying that you are more expensive than their last shop?
How do you win back angry customers?
How do you handle over the phone quotes?
Technical interview questions for service advisors
What are your greatest strengths as a service advisor?
Who do you trust for moving electrical parts?
How do you handle working in a fast-paced environment?
Are you comfortable meeting sales goals and upselling services?
How do you stay up to date with new automotive technology and service trends?
How do you handle stress during busy hours?
Experience & situational questions for service advisors
How do you explain complex vehicle repairs to a customer who doesn’t understand cars?
What steps do you take to build trust with customers?
Have you ever had to deal with a miscommunication between a technician and a customer? How did you resolve it?
Can you describe a time when you turned a dissatisfied customer into a repeat customer?
How do you handle multiple customers needing assistance at the same time?
Additional questions to expect
How do you explain the importance of routine maintenance to a customer?
What experience do you have with automotive service software or point-of-sale systems?
How do you prioritize repair orders and schedule work efficiently?
How do you explain repair estimates to customers?
How would you respond to 1-star reviews?
Job interview tips for mechanics
Research: Not all shops are created equal so make sure to research before applying to make sure they are a good fit. You can also look at online reviews to see what their customers are saying.
Preparation: Use the commonly used questions above to help you prepare for the interview. Practice how you would answer each question and ways you can present yourself well.
Attire: You have 7 seconds to make your first impression and attire is a big part of that. Dress to showcase your professionalism and experience.
Highlight your experience/certifications: Showcasing your certifications and experience can go a long way to in making sure you land the job.
Ask thoughtful questions: Some interviewers will allow you to ask questions during the conversation. Make sure you have a few questions to ask that help you learn more about the shop.
Follow up: if you haven’t heard back from the shop and you are still interested, give them a call and remind them of your interest in the position.
Final thoughts
Interviews are challenging in any industry but mechanic interviews can be even more challenging with the shortage of talent available. This guide will help you either prepare for your next interview or provide you with common questions to ask your next hire. Lastly, always hire for culture fit and talent second. Culture problems are a lot harder to correct than technical car knowledge.
If you're running an auto repair shop, investing in a car lift is essential. A high-quality vehicle lift makes it easier to work on cars, increases efficiency, and ensures safety. But how much does it actually cost to install a car lift? That depends on the type of lift, installation costs, and other factors such as weight capacity and safety features. Let’s break it all down so you can pick the best automotive lift for your needs.
Do you need a car lift?
Car lifts are essential in auto repair shops because they provide mechanics with better access to a vehicle’s undercarriage, making inspections, repairs, and maintenance tasks safer, more efficient, and more comfortable. Unlike floor jacks, lifts offer a stable and elevated workspace, reducing the risk of injuries and improving workflow.
With a car lift, technicians can quickly perform tasks such as oil changes, brake repairs, exhaust system work, and suspension adjustments without having to crawl under the vehicle. This efficiency leads to faster turnaround times and higher shop productivity.
Additionally, lifts help maximize shop space by allowing vertical storage for vehicles, which is especially useful in high-volume repair shops. Overall, car hoists are a fundamental investment for any auto repair shop looking to enhance efficiency, safety, and the quality of service provided to customers.
Types of car lifts and their costs
Each type of lift has its pros and cons. Some lifts are better for oil change shops and some are better for tire or repair shops. In general, car lifts can cost between $1,000 and $20,000 depending on brand, lift capacity, lift height, and features. Here’s a comprehensive look at the most common lift options for your shop.
Two-Post car lifts
A two-post car lift is one of the most popular choices for auto repair shops. They are popular because they take up less space and can be affordable depending on features. Make sure to plan out your shop layout as these lifts are permanent and cannot be easily moved. These hoists come in asymmetric and symmetric configurations, allowing flexibility based on vehicle type.
Price: $3,000 - $10,000
Best For: General repair shops working on SUVs and smaller cars.
Lift capacity: 5,000 - 10,000 lbs.
Popular brands: BendPak, Rotary, Tuxedo.
Advantages: High lifting capacity while saving space for smaller shops.
Four-Post lifts
A four-post lift provides greater stability and weight capacity, making it ideal for heavier vehicles. If your shop works on a lot of trucks or heavy-duty vehicles, the four-post lift might be the best lift for you. Tire and brake shops should avoid these lifts as the tires sit on the lift making it difficult to work on these areas.
Price: $5,000 - $25,000
Best For: Dealerships and professional shops.
Lift capacity: 7,000 - 14,000 lbs.
Popular brands: BendPak, Titan, Tuxedo, Rotary.
Advantages: Heavier lifting capacity for larger vehicles.
Scissor lifts
If saving space is your top priority, the scissor lift may be your best option. They are almost invisible when not in use and lie flat on the ground to optimize garage space. Double check the lift capacity and height to make sure it can accommodate the types of vehicles you work on.
Price: $1,500 - $10,000
Best For: Quick repair shops where space is limited.
Lift capacity: 5,000 - 15,000 lbs.
Brands: QuickJack, BendPak, MaxJax
Advantages: Compact and cheaper.
In-Ground lifts
In-ground car lifts are a great choice for shops that work on heavier vehicles and want to save space. These lifts are the perfect balance of the space saving capabilities of a scissor lift while also providing optimal strength for large vehicles.
Price: $10,000 - $25,000
Best For: Repair shops and dealerships.
Lift capacity: 5,000 - 20,000 lbs.
Brands: BendPak, Rotary, Atlas
Advantages: Compact while also offering enough muscle.
Portable car lifts
If your shop layout frequently changes or you are a mobile mechanic, a portable lift may be the best option. These lifts can be easily moved around a garage or taken to a job site and are often the cheapest option. However, they can be less reliable and don’t provide the same level of strength as a stationary lift.
Price: $500 - $5,000
Best For: Home garages, mobile mechanics, DIY enthusiasts.
Lift capacity: 5,000 - 10,000 lbs.
Brands: QuickJack, MaxJax
Advantages: Affordable, compact, mobile.
Installation prices for car lifts
Installing a vehicle lift is not just about purchasing the unit. You also need to consider the installation costs, which can vary depending on the type of lift and garage setup. Here are the main factors affecting installation costs:
1. Concrete requirements
Most lifts, especially two-post car lifts and four-post lifts, require a thick concrete base. If your floor isn’t thick enough, you may need reinforcement, which adds to the cost.
2. Electrical setup
Lifts need power, and if your garage isn’t wired for it, you’ll need an electrician.
3. Air compressors & accessories
Some lifts require compressors and additional balancer tools for operation.
4. Professional installation
Hiring a pro ensures the lift is ALI-certified and meets safety regulations.
Choosing the right car lift for your auto repair shop
Each type of lift comes with its own advantages, making it important to choose the right one based on your needs. Here are some things to consider when making your decision:
How big is your shop?
Which repair services do you offer?
What is your budget?
Does the lift offer a warranty?
Will you garage layout change over time?
How important is a car lift warranty to you?
How heavy will the vehicles you work on be?
What is the average review rating of the lift?
How easy or hard is the lift to install?
How much will the maintenance cost?
Final thoughts
Installing a vehicle lift in your auto repair shop is a smart investment. Whether you choose a two-post car lift, scissor lifts, or portable lift, knowing the lift cost and installation costs upfront can help you budget wisely. Whatever you choose, ensure it’s ALI-certified for safety and performance. Lastly, don’t forget about regular maintenance and safety inspections to ensure your lift continues to run for many years.
Shop Management
Thought Leadership
How Much Does a Car Lift Cost + Installation Prices
Ever wonder how you could make your auto repair shop website rank in Google for “Mechanic near me” or “Best auto repair shop”? Look no further, this guide will walk you through everything you need to know about search engine optimization for automotive repair shops.
Search engines play a large role in today’s buyer journey and the auto repair shop industry is no different. Shop owners are recognizing this and starting to emphasize SEO (search engine optimization) as part of their overall digital marketing strategy.
Auto Repair SEO 101
SEO for automotive repair shops is a marketing tactic designed to influence how your website ranks in Google and other search engines. When done correctly, SEO efforts can create more website traffic and ultimately, generate more customers for your auto repair shop.
However, search traffic is becoming more competitive and other shops are likely aiming for the same keywords as you are. Utilize this guide to see how you can improve your website traffic and search engine rankings for your auto shop.
Tek-Tip: Curious how you rank for important keywords? Simply open an incognito tab and search for keywords you want to rank for. Incognito tabs remove location and search history bias from your search.
Why is SEO important for Auto Repair Shops?
More traffic equals more customers
Search traffic is high-intent traffic which means that people who are searching for “mechanic near me” and similar queries are indicating that they are ready to make a decision. Social media and other traffic forms may bring in traffic but rarely are they ready to make a decision that day. Capturing more search traffic almost always leads to more conversions. Think about it, when you start looking for a service where do you start your search?
Brand awareness
Even if the customer is not ready to make a decision that day, being visible for relevant keywords is important (and free) brand awareness. Ranking well will help your shop stay top of mind for future automotive repair needs and build your online presence. Just like we remember a billboard or business logo weeks later, being visible in search engine results leads to better brand awareness and online visibility.
Cost effective
Unlike paid advertising, SEO efforts are free if you do them in-house. All you need to get started is this guide + a few YouTube videos and you can make a big difference in your website traffic and online conversions.
Local search
Search engines can use mobile device locations to help match customers with a shop that is nearby. Part of this guide will walk you through how you can indicate to Google where your auto repair shop is located and capitalize on local search traffic.
5 Steps to Improve your Rankings and Website Traffic
1. Quality content
Helpful content: Google loves fresh content and companies who regularly publish helpful content. Strategize what type of content will resonate with your audience and don’t be afraid to test new ideas. Consider removing or updating out-of-date content that is no longer relevant for your audience.
Content calendar: Creating a content calendar for your shop can help you strategize which topics you want to cover each month and who will be responsible for the project timeline.
2. On-page SEO
URLs: Did you know that Google uses the words in your url to help understand what your content is about? Avoid generic URLs like www.Yourshopname.com/blog/23trk and start using keyword-rich URLs like www.Yourshopname.com/blog/houston-tire-store. A simple optimization that can lead to better rankings.
Keyword research: Organic search is no longer about stuffing your content with every keyword you can find but keywords still play a part in how Google ranks content. Keywords are the terms searchers type into Google like “Tire shop near me” or “Brake service shop in Houston”. Other common auto repair keywords include “auto repair shop near me”, “best mechanic in (insert city)”, or "(insert service type) near me”.
You can use a free tool like Google Search Console (more info on tools later on) to explore which keywords you are ranking for and strategize how you can include those terms in your content/website. You will also want to research keywords that you do not currently rank for but want to in the future. Don’t forget to look at competitors and see what they are ranking for to help you locate your target keywords and form your overall strategy.
Internal linking: If you think of the internet as a spider web, each piece of content has internal and external links that help connect related content. These internal links help search engines crawl your website and find all the other content your website has to offer. Aim for at least one internal link in each article you write.
Meta Descriptions: As the name suggests, meta descriptions inform readers on what they can expect your content to cover. This is a great place to highlight keywords you think searchers might use to find your content.
Avoid click-bait strategies but try to make your meta description attractive and keyword dense. This will lead to better click-through-rates and better rankings. Aim to use 150 characters or less in your meta description so Google doesn’t cut it off.
Meta Titles: Think of a meta title as the headline or title tag for your content. This is a great place to showcase what your content offers and what it covers. You also want to feature your top priority keyword in the title to make sure Google (and users) know that it matches what they are searching for.
3. Technical SEO
Tek-Tip: Warning: this section is more technical and may require the assistance of a website professional. We recommend Shopgenie to help with all of your website/SEO needs.
Page speed: Search engines have started to prioritize websites that provide a better user experience and part of that is having fast page speed. You can test your website speed using this free tool. Some quick ways to improve your page speed would be to minimize image file sizes and reduce the number of third-party scripts you have on your website. You may need to contact a website developer if you want to make bigger adjustments to your website.
Link building: Search engines use backlinks as a way to identify which websites are trustworthy and authoritative. For example, if your website has a link from Forbes pointing to your blog article, it indicates that your blog has value. The more links you can gather (especially from high-quality websites) the more reasons search engines have to believe your website has value.
SEO and PR agencies can help you build your link profile. You can also contact other websites directly and do manual outreach. The best practice is to create content that people want to link to and the links will accumulate naturally. Content that typically performs well for link-building in the automotive industry includes how-to videos, guides, and tutorials.
Mobile friendly/UX: Have you ever been frustrated by a website on your phone that you can’t use because the buttons are too close together or it loads slowly? With the majority of your target audience using their phones to search for services, your SEO strategy needs to include a user and mobile-friendly website design.
Sitemaps: A sitemap is a file that you can add to your website to help guide search engine crawlers to your content. Think of it as a crawler roadmap for your website. This file can be useful if you don’t want certain parts of your website crawled or if you recently added new content and want it to be crawled quickly.
4. Local SEO
Google My Business: Google My Business (GMB) is a free Google business profile that showcases your company, services, contact info, logo, and more. An easy way to improve your local SEO is to keep this platform up-to-date with your contact information, website, and hours of operation. If a potential customer searches “auto repair shop near me” your GMB listing indicates to Google if you service that area and helps you rank for their search.
Bonus tip: Make it easy for customers to leave reviews on your GMB profile as extra proof that you run a quality automotive repair shop. Some auto shops add a QR code on the front desk or on receipts directing customers on how to leave reviews. Make sure to respond to negative and positive reviews with professionalism. First impressions matter; potential clients often research reviews before selecting a shop.
Directories: Directories are popular aggregation review platforms like Yelp, Consumer Reports, BBB, and Yellow Pages. Claiming your business profiles and updating them with your relevant information can help some potential clients find your auto repair business. Make sure your phone number, address and website are all up to date within each directory.
Location pages: Adding your address and directions to your website can help search engines understand where you are located and aid in pairing you with appropriate local queries. Another tactic is to make sure your website content mentions your city to further boost this effort.
5. SEO tools
Paid tools: There is no shortage of SEO software/tools to help you upgrade your auto repair SEO strategy. These tools typically have a free version but they are limited in functionality and you will need to upgrade if you have larger websites. Some of the top options include Ahrefs, Semrush, and seoClarity.
Free tools: If you have a smaller website you may be able to get by with these free tools. Some of the top free SEO tools include Google Search Console, PageSpeed Insights, and free versions of Ahrefs and Semrush.
Tracking/monitoring: After making updates to your website and overall SEO strategy it is important to track your progress and KPIs like clicks, traffic, impressions, CTR and others that may be relevant to your auto repair business. You can build free tracking dashboards in Google Analytics or Google Looker Studio.
Bonus tip: Google and other search engines regularly update their algorithms so keep an eye out for volatility during these updates.
How long does it take for search engine optimization to work?
While some SEO tactics will start working immediately, larger and more consistent progress will be seen within 3-6 months if implemented correctly. Typically, this progress is seen as part of a “snowball” effect where multiple small optimizations will snowball into larger results over time.
Ranking on the first page of Google can take time but it often depends on how many competitors are in your area. All worthwhile marketing strategies take time and SEO is no different.
Final thoughts
Search engine optimization is an important tactic to drive more traffic and customers for your auto repair business. Keep in mind that SEO is one of many marketing tactics and should be part of a larger marketing strategy. To be successful in automotive shop marketing you will also need to explore other channels like social media, email, paid advertising, and traditional marketing.
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