Profitable Auto Repair Shop & Real Estate – Mechanic’s Dream!
About the Business: This profitable auto repair business focuses on general auto repair and maintenance, was established in 2013, and is located in the high growth area of Firestone Colorado. Both the business and the real estate are for sale.
The shop provides general automotive repair and maintenance, which provides includes all manufacturer-recommended services: Air Conditioning, Belts, Filters Hoses, Radiators, Tune Ups, Alignment, Brakes, Fluids, Minor Electrical, Struts and Shocks, Wheel Bearings, Alternator, Diagnostics, Heater Cores, Oil Changes, and Tires and Repair services.
Hours of Operation, Inventory and Furniture/Fixtures/Equipment: Open Monday through Friday from 8am to 5pm. The shop has 4 bays that are comprised of 2 lifts, 1 alignment rack, and 1 more bay. There is about $25,000 used replacement value of total equipment included in the sale of the business, and there is approximately $3,000 of inventory on hand.
Growth and Expansion for the Business: A prospective buyer will be excited that the shop in general is operating at only 60 to 70% capacity. This is due to owner running this business as a retirement business and simply not wanting to work any harder than he chooses.
The real estate was refinanced with an SBA Loan a few years back and the appraisal on the property at that time was $420,000. The building is 4,000 total square feet and t there is a tenant that rents out 1,000 square feet for $820.00 per month. The rent will go up to $1,000.00 per month in 2020. A new owner could also consider not renting to the tenant and instead build out the space to add another 2 bays. Also – High growth area! There are two new subdivisions, 100 homes each, going in just down the street from the shop.
Competition: Located in a high-growth area and there is not very much commercial automotive in the area. There is a franchise auto shop down the street, but that is actually good for business. For purposes of zoning, the property is grandfathered in as an auto repair shop. As the surrounding property is being developed, there has not a been a lot of thoughtful planning consideration given for other auto repair facilities to start up given the need propelled by the population increase, which makes this an excellent strategic play for a mechanic to own the real estate and grow the business.
Financing: Because of the excellent books, records, and accounting, this business has been pre-approved by an SBA Lender to a qualified Buyer with approximately $123,000 down payment. In order to qualify for the loan, the buyer need be an experienced auto mechanic, and intend to be the owner/operator of the shop. To obtain the loan the buyer may not be an investor or absentee owner. With only 18% of the Purchase Price ($123,000) as a down payment, seller can project that a buyer should be able to service the loan payments and still have an adjusted net profit of over $110,000 per year! Opportunities such as this that include the real estate in booming area such as this are rare no doubt.
Training and Transition: 2 weeks of training are included in the sale price of the business as the Seller believes an experienced mechanic would not need more. However, if for some reason the buyer needs additional training the Seller wants the buyer to know he is flexible to work with a buyer on a defined consulting basis or graduated phase-out , if that is what is needed for the buyer to feel comfortable during transition.
Reason for Selling: Retirement