Is starting on an auto-mechanic shop advisable?


I am looking into purchase an established auto mechanic shop. The state of economy and ever changing technology could be reasons to fail in future. What are the obstacles for this industry's future?


Running a business is always risky, and owning an auto mechanic shop is no different. Your concern about changing technology is interesting because I see two main avenues of change. First, there may be changes in the process of repairing vehicles, new tools, automation, and new techniques. The second avenue of technological change is the changing propulsion technology and vehicle software.

Technology that makes repairing vehicles easier would likely increase the number of competitors in your area. However, that same technology would likely reduce your daily expenses.

Far more interesting is the new technology in vehicles. Tesla, Chevy, and Ford all have electric vehicle options. Although EVs currently account for only about 1% of the total vehicles on the road, their sales are increasing. With these new vehicles companies like Tesla require people to get repairs at Tesla-approved repair shops. This could potentially reduce demand for traditional repair shops. On the other hand, as traditional vehicles age, they will need more repairs raising the demand for repair services.

Answered by
Last updated on
August 31, 2022

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