The good, the bad, and the unexpected of purchasing an auto repair shop

John Phelps

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August 29, 2024

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Read time: 3 min

Whether you’ve worked in the industry for years as a technician or are considering moving into the automotive industry for the first time, owning an auto repair shop can be a very rewarding experience.

In collaboration with PartsTech, we reached out to our customer, Eric Reich, who purchased his auto shop in 2021, to learn about his experience and share it with you. 

Before becoming an auto repair shop owner, Eric worked for about ten years in the aerospace MRO (Maintenance, Repair & Overhaul) sector and about ten years in the electrical distribution sector. Looking for a change, Eric ultimately jumped into the auto repair industry by purchasing Bennet’s Automotive — a six-bay shop that services all domestic and Asian-manufactured vehicles.

The Dream: Owning his own business

For Eric, working at large corporations for 20 years became too predictably bureaucratic. He felt buried by meetings, paperwork, and slow decision-making. “After spending nearly two decades at corporate companies, I was looking for something I could call my own,” said Eric. “My goal was to be an independent business owner and not rely on large corporations whose only goal was to maximize profits at all costs. I found that independence when I purchased Bennett's Automotive, which has been in business since 1991.”

The Good: Success and positive outcomes

Taking the time to find the right shop 

Eric didn’t want just to purchase the first shop for sale that came across his path, “You can’t rush or predetermine anything. If the shop you are evaluating is not a good candidate, then you have to walk away,” said Eric. During his patient search, Eric found that he very much enjoyed the process of evaluating prospective shops and identifying if they were a good potential candidate to achieve his business goals. 

A dedicated, expert team

From our conversation with Eric, it is clear that he values his team, which stayed on through the change of ownership when he purchased the shop. “I have been consistently impressed and proud of my team's dedication and technical expertise. During the transition of ownership, they did not allow the uncertainty of the situation to impact the quality of their work,” said Eric. Having the right people in place is critical to a successful shop. “I was so lucky to purchase a shop with such a solid existing team.”

The Bad: Challenges and setbacks

A small team naturally results in staffing issues

Eric credits his team with minimizing the level of operational challenges he faced as a first-time shop owner: “Thankfully, I had a great core team when I took over the shop. Without them, the transition would have been much more difficult. You are only as good as your team.”

Though his team is awesome, he quickly discovered that his most significant operational challenge would be staffing: “As a smaller shop, the risk is in quality manpower. If we have a guy out or are operating a guy short, it adds additional strain to the rest of the team.”

The Unexpected: The things that caught Eric off guard 

Time is incredibly precious, and everyone wants a piece of it

“As a shop owner, you have to be careful about your time,” says Eric, “and one of the biggest surprises I encountered was the number of unsolicited calls from random companies trying to sell or sign me up for something.” 

There is a ton of paperwork.

“I did not realize how much paperwork would come with purchasing and owning a shop,” said Eric, “There is a lot!” 

Tips from Eric for anyone interested in purchasing an existing auto shop 

First things first 

Before jumping into the deep end of purchasing a shop, Eric recommends you consider the following first:

  • Be very honest with yourself regarding your goals. Do you want to work in the shop? Be more hands-off? Etc.
  • Be willing to walk away from a bad deal. Don't get attached to any one shop/location. If the numbers don't make sense, don't move forward.
  • Ensure you have enough operating cash. You must have enough cash to handle normal ebbs and flows and an emergency. Not having enough cash is the fastest way to run into problems. (Eric likes to have at least three months of overhead.)
  • Be very thoughtful about overhead. You have to ensure that each overhead line item has a specific and defined purpose. 
  • Take training in basic financial acumen. To be set up for success when starting the journey of purchasing a shop, Eric advises aspiring shop owners to have a strong understanding of business finances such as P&Ls, pricing strategies, and cash flows to evaluate the shop's health. This is important so you know whether or not you should walk away from a deal. If necessary, Eric encourages taking a financial training course first.

It’s not just about the physical tools and equipment.

When purchasing an existing shop that already had a lot of the necessary physical tools and equipment, Eric focused on the software he wanted to implement. He encourages shop owners to evaluate the current software and make necessary changes early in their ownership journey. 

Choose software that drives efficiency and organization and is user-friendly for employees. Also, select software that enhances customer engagement and provides a positive experience.

“Generally, you must streamline your operations and communicate effectively with customers. We use Tekmetric as our shop management software for efficient workflow and customer communication. It also integrates with software such as PartsTech, which allows us to quickly source, price, and order parts from multiple vendors. This efficiency helps our small shop operate as lean as possible, speeding up vehicle repairs.”

Put a big focus on building trust with customers

One of the big reasons Eric wanted to upgrade the shop's software when he purchased it was to have better tools to help build customer trust. “We transitioned to Tekmetric from an older legacy program that made communicating via text/electronically almost impossible. We get consistent customer feedback that they like our new system and communication method with our ability to send inspections, images, videos, estimates, and invoices digitally.”

Closing

Purchasing an auto repair shop is a significant step that requires careful planning, honesty about your goals, and a strong understanding of the business's financial and operational aspects. 

As Eric's journey demonstrates, having the right team, investing in efficient software, and being prepared for unexpected challenges are crucial for success. If you're considering this path, take the time to evaluate your options thoroughly, seek out the necessary training, and build a solid foundation for your new venture. With dedication and the right approach, owning an auto repair shop can be an incredibly rewarding experience.

👉 Ready to grow your automotive business? [Book a personalized Tekmetric Demo Here]

FAQ

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A standard automotive repair order form usually isn’t more than a page or two. It contains vital information like the work to be done on a vehicle, any parts to be ordered, and a cost estimate of all the services to be provided.

While traditional auto repair order forms have served as a reliable method for managing repair orders for many years, it is becoming increasingly clear that they are no longer the most efficient or effective option available.

In fact, there are several ways in which the use of manual auto repair order forms may be limiting the potential of your shop.

Creating a great culture at an auto repair shop is the key to keeping and growing technicians 

Cars are lasting longer than ever, but the technicians who fix them are becoming harder to find. The average vehicle on U.S. roads is about 13 years old, and there are not enough skilled technicians to go around.

The auto repair sector needs about 71,000 new technicians a year, and the training pipeline delivers only about 50,000. That is more than 20,000 unfilled positions every year, and the shortfall continues to grow.

That gap is stark.

For auto repair shops, the shortage is not a statistic. It is a daily question: who is going to fix the cars?

Sunil Patel, Tekmetric founder and CEO, said this crisis can be solved with auto repair shop improvements. Those solutions, however, often are not the ones most shop owners typically expect.

Before he founded Tekmetric, Patel owned Motorwerks, an independent repair shop in Houston, Texas, where he learned about the technician shortage from inside the bay. After years of seeing the problem as a shop owner and now as an automotive repair technology leader, Patel says the shortage will not be solved with better software alone. 

It starts with creating a great culture and valuing people. Patel speaks from firsthand experience, and his conviction on where to start is clear.

"I would spend a lot more time on the culture side of it," he said. "I would make sure I'm building an amazing culture that attracts amazing technicians."

The First Hire

Patel started Motorwerks as a one-man operation. He turned wrenches at night and took vehicles in during the day. There was no hiring strategy because there was no one to hire but himself.

Then the work outgrew him.

"Eventually I started getting busier and busier, and I needed a technician," Patel said.

He reached out to a contact at a local dealership and asked if he knew anyone looking for work. The technician that was recommended had just been let go from the dealership. He had made a mistake, but he was genuinely skilled. Patel took the chance and hired him.

It paid off.

"He would crank out hours, and he was really good at his job," Patel recalled.

The technician struggled with diagnostics, but that happened to be the part Patel enjoyed most. The two skillsets fit together. The shop kept moving.

That early hire taught Patel something he tells shop owners to this day: a great technician is rarely great at everything, and the shops that win are the ones that build a team around complementary strengths and skills.

Why Hiring Became Harder

The work itself is part of the challenge. Repairing cars has always been demanding, but it keeps getting harder, and nowhere more than at an auto repair shop.

Consider the difference between a dealership and a shop. A dealership technician works on a narrow set of vehicles from a single manufacturer, where the engineering stays largely consistent from one model to the next.

"If I take the most compact car versus the most expensive car, the underlying technology is going to be very similar at a dealership," Patel explained.

A technician who has never touched a particular model can usually still work on it because the platform underneath is familiar.

An independent auto repair shop has no such predictability. It can take all makes and all models.

"You don't know what's going to come through that door," Patel said.

Shops can see a Honda one morning, a Toyota that afternoon, and a European luxury car the next day. Every job can push a technician past what they know best. And the steepest part of that climb is no longer mechanical — it is electronic.

"The hard part of this is not the mechanical side," Patel said. "It's the electronic side where technicians usually get stuck."

Modern vehicles run on layered software, networked sensors, and advanced driver-assistance systems. The U.S. Bureau of Labor Statistics notes that technicians increasingly work on these complex electronic and computerized systems, and diagnosing them well is a specialized skill. Those specialized skills are exactly what the labor market is short on.

No shop can send its team to factory training for every brand. There are more than 50 vehicle manufacturers on the market. The best shops specialize the way Patel did at Motorwerks: for instance, one technician strong on European vehicles, another on Japanese, another on domestic. That mix lets a shop triage almost anything that rolls in, and it turns a hiring problem into a team-building one.

The Myths Keeping Young People Out

Ask most people to picture a technician, and the image is dated. Greasy hands. A hot bay. Hard, dirty work.

Patel said that picture is a mischaracterization of how technicians work today.

"A lot of that is changing," he said.

Some independent shops today are fully air-conditioned. Part of the work is no longer mechanical — it is electronic, diagnostic, coding, and programming.

"You've got to be able to use a laptop," Patel said.

The old image does real damage. It steers young people away from a career that has quietly modernized. Correcting it, in Patel's view, is one of the industry's most important recruiting jobs.

Culture Is the Real Reason Technicians Leave

Patel said one pattern separates the businesses that attract and keep great technicians from the ones that cannot. It is culture. And many shops have room for improvement.

"When a technician leaves a repair shop, it's not because of the money," Patel said. "It's mainly because of the culture and environment, or lack thereof, that causes them to leave to another shop."

There is a structural reason culture gets neglected. Many independent shops are founded by technicians.

"They're not trained in the fundamentals of running a business, attracting top talent, and building an amazing culture," Patel said.

Most learn it through trial and error.

His prescription is uncomfortable for a lot of owners. Ask your technicians how they actually feel about working for you. What do they like? What do they not like?

"These are things shop owners sometimes don't even want to ask because it's out of their comfort zone," Patel said.

But the question itself sends a message.

"I want to make sure I'm doing everything in my power to build an amazing environment for you to thrive in, to grow," Patel said. "This is an emotional thing.”

The cost of getting it wrong is measurable. Collision shops alone see 30 to 40 percent annual technician turnover, according to a 2024 industry study from I-CAR and the Society of Collision Repair Specialists. Replacing skilled workers runs an estimated one-half to two times their annual pay when recruiting, lost production, and training are totaled, per Gallup.

In a trade this short on talent, a culture that keeps people is not a soft benefit. It is a bottom-line advantage.

The Small Things Add Up

Building culture does not require a consultant or a budget line. At Motorwerks, it was lunch.

Every Friday, Patel bought the team lunch and let the technicians pick the food. Eventually, he started barbecuing in the back of the shop, then rotated the grilling duty across the crew. He  also experimented with better health care and benefits.

None of it was flashy. All of it pointed the same direction.

"Making them feel like we care is what it boils down to," Patel said.

Real Pay and a Real Career Ladder

Technician compensation is misunderstood. Many people assume a shop career is a financial dead end. It is not.

"Some of the best technicians can earn a solid six figures," Patel said.

The range is wide, and that is the part young people rarely hear. The median automotive technician earns about $49,670 a year, according to the U.S. Bureau of Labor Statistics. But the ceiling is far higher. Top flat-rate and master technicians routinely clear $100,000, and the fastest specialists earn as much as $160,000. The career rewards skill and speed, and its best earners are paid like it.

But money alone does not keep a technician on the job because the work is physically taxing. Technicians spend hours in awkward positions, lifting heavy parts, and holding components in place. Cuts, bruises, and back strain add up. Long days take their toll.

That is why Patel believes shops need a ladder, not just a wage. Owners should create a pathway for young technicians to grow into team leads, roles where their experience lifts the next generation rather than only their own billable hours. A career with a visible next step keeps good people in the industry.

Where Technology Fits

Patel is candid about the role Tekmetric plays in all of this. Technology did not create the shortage, but fragmented software makes technicians' jobs harder than they need to be.

For years, the shop technology stack was disconnected: one system for the front counter and a separate one for the technicians in the bay.

"Nobody's ever created an end-to-end solution from the time a vehicle is taken into a repair shop to the time it's fixed," Patel said.

Building that single, unified platform is the problem he set out to solve.

Tekmetric built tools specifically for technicians. The Tekmetric mobile app lets technicians move faster and target the exact friction that makes technicians skip digital vehicle inspections (DVIs).

Ask a technician why they do not run a DVI on every vehicle, and the answer is speed. It takes too long to photograph the issue, edit the images, and write it up. Tekmetric collapses that into something as simple as taking a video.

The payoff shows up in the numbers shops care about. The average repair order across Tekmetric shops is $612. With DVIs active, it climbs to $741. Add MotoVisuals video, and it reaches roughly $800. Faster, easier inspections do not just help the technician. They help the customer make an informed decision, and they help the shop grow.

The technicians are now the ones pushing owners to modernize.

Patel has watched technicians go to new shops and refuse to work on anything else other than Tekmetric. The platform's ease of use is what keeps them hooked.

"They tell the new shop, 'I'm not using whatever you have. You have to switch to Tekmetric,'" he said.

Building the Next Generation

Closing the shortage means reaching young people before they ever pick a trade. Patel is betting on the classroom.

Tekmetric is leading the effort by working directly with trade schools to understand what it can do to help, and what it found was a gap. Many training programs still run on pen and paper, or carry a cost for software and repair guides that creates a financial barrier to invest in other places.

"A young person comes in who's stuck on their iPhone, and they think, 'This is how this industry operates,'" Patel said.

The disconnect between the technology in a student's pocket and the technology in the classroom is its own recruiting problem.

To combat this, Tekmetric gives its platform to these schools for free. The goal is to let the next generation see, from day one, that a modern shop runs on modern tools.

Patel's pitch to any high school guidance counselor is straightforward. A student can leave high school, work as a technician for five to 10 years, and open a shop of their own.

"That is something exciting, and it's meaningful income," he said. “It is a path to ownership, not just a job.”

Why It Matters to Him

Patel has been in this industry long enough to feel its history personally, back to the muscle cars of the 1980s.

"It's part of the fabric of America, and it's what makes this country great," he said.

He knows the pains that shop owners, service advisors, and technicians carry, because he has carried them himself.

He is hopeful the shortage reverses, and clear-eyed about what will and will not get it there. Better tools help. Better training helps. Better culture helps most.

The shortage, in the end, is a people problem. Patel's whole argument is that shops should start treating it like one.

"AI is not going to solve fixing cars," Patel said. "That's something a human being is going to have to do for a while."

In the fast-paced world of auto repair, every minute counts, and your technician's time is your greatest asset. You’re not just managing a business—you’re orchestrating a complex balancing act of diagnostics, repairs, customer interactions, and team coordination. With so much on your plate, wouldn’t it be great if you had a tool that sped up the inspection process and created more customer trust? Well, your wish just came true.

Available for free across app stores, the Tekmetric Mobile App is designed to streamline your inspection process, boost productivity, and build stronger, more trusting relationships with your customers—all while putting more money in your pocket.

The Freedom to Do More, Right from Your Phone

In the world of auto repair, time is money. Every second your technicians spend away from their primary tasks, whether they’re running back to the computer to log information or trying to send and upload pictures, is time that could be spent actually working on vehicles. The Tekmetric Mobile App changes all that by bringing everything your technicians need right to their fingertips.

With the Tekmetric mobile app, your technicians can easily complete digital vehicle inspections directly from their phones (iPhone or Android). No more clipboards, no more back-and-forth to the computer. They can take high-quality photos and videos, accurately document vehicle conditions, and perform detailed inspections on the spot. It’s fast, it’s efficient, and it keeps your team focused on what they do best—repairing cars.

Cut Time Spent on Inspections in Half

The Tekmetric Mobile App isn’t just a convenience; it’s a productivity powerhouse. It streamlines the inspection workflow, allowing your technicians to move seamlessly from one task to the next without skipping a beat. The app’s intuitive interface means there’s no steep learning curve—your team can start using it immediately, saving valuable time from day one.

Imagine the impact on your shop’s efficiency when your technicians are no longer bogged down by administrative tasks. Inspections are completed faster, data is recorded more accurately, and your team is free to focus on getting vehicles back to their owners quickly. This increase in productivity means more cars serviced each day, which directly translates to more revenue for your business.

Increase ARO by adding photos

Trust is everything in the auto repair industry. Your customers need to know that they can rely on you for honest, accurate assessments of their vehicles. The Tekmetric Mobile App helps you build that trust by making it easier than ever to communicate with your customers.

With the app, your technicians can document vehicle conditions with detailed photos and videos, giving your customers a clear, visual understanding of any issues. Instead of just telling them what’s wrong, you can show them. The Tekmetric mobile app takes this to the next level with its photo markup feature, allowing your technicians to visually pinpoint exact issues on the images without slowing down. This transparency not only helps customers feel more confident in your recommendations, but it also fosters long-term relationships based on trust and satisfaction.

When your customers see that you’re being upfront and thorough, they’re more likely to approve necessary repairs and keep coming back to your shop in the future. The Tekmetric Mobile App helps you build that kind of loyalty, one inspection at a time.

Boost Monthly Revenue by $15k

At the end of the day, your shop is a business, and like any business, profitability is key. According to the 2023 Industry Index, Tekmetric shops who add an average of 25 photos and videos to their inspections see their ARO increase to $2500. The Tekmetric Mobile App is designed to help you accomplish just that. You can maximize your earnings by enhancing efficiency and customer satisfaction.

Faster inspections mean more vehicles can be serviced in a day, which leads to increased revenue. Additionally, when customers trust your assessments and feel confident in their decisions, they’re more likely to approve additional services, further boosting your sales. And because the app improves documentation accuracy and reduces the chance of errors, you’re also protecting your shop from costly misunderstandings and disputes.

The Future of Auto Repair is Here—And It’s Free

The Tekmetric Mobile App is more than just a tool; it’s a game-changer for auto repair shops of all sizes. It’s designed to fit seamlessly into your existing workflow, enhancing every aspect of your inspection process while saving you time and money. And the best part? It’s completely free to download and use.

Whether you’re managing a single location or multiple shops, the Tekmetric Mobile App is ready to help you take your business to the next level. It’s intuitive, powerful, and it’s available right now in your favorite app store.

Ready to Transform Your Shop?

Don’t let inefficiencies and outdated processes hold your shop back. The future of auto repair is here, and it’s as simple as downloading an app. Start improving your productivity, building stronger customer relationships, and increasing your profits today.

Learn more about the Tekmetric Mobile App Today. Your team will love it, your customers will appreciate it, and your bottom line will thank you.

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