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A financial plan for auto repair shop

Get an ultra-detailed and perfectly clear projection of your future revenue, profits, and margins — without having to do any calculations.

What equipment is required to start an auto repair shop?

This article was written by our expert who is surveying the industry and constantly updating business plan for an auto repair shop.

business plan auto repair shop

Our business plan for an auto repair shop will help you build a profitable project

Starting an auto repair shop is a rewarding venture, but selecting the right equipment can be daunting.

The challenge lies in knowing exactly what tools and machinery to invest in without breaking your budget or overlooking essential items.

Every auto repair shop has unique requirements, and equipment costs can escalate rapidly without proper planning and research.

Complete Auto Repair Shop Equipment List

Launching a successful auto repair shop requires strategic planning and the proper equipment. This comprehensive list covers everything you need to get your automotive service business operational.

Lifting Equipment

  • Vehicle lifts (2-post/4-post) - Essential for accessing vehicle undercarriage safely
  • Floor jacks - Portable lifting solution for quick repairs
  • Jack stands - Critical safety equipment for supporting lifted vehicles
  • Transmission jack - Specialized tool for removing heavy transmission units
  • Engine hoist - Lifts engines and heavy components during major repairs
  • Creeper - Allows mechanics to slide under vehicles comfortably

Diagnostic Equipment

  • OBD-II scanner - Reads vehicle computer error codes accurately
  • Multimeter - Tests electrical circuits and component functionality
  • Oscilloscope - Analyzes complex electrical signals and waveforms
  • Compression tester - Measures engine cylinder compression levels
  • Fuel pressure gauge - Tests fuel system pressure specifications
  • Vacuum gauge - Diagnoses engine performance issues effectively
  • Battery tester - Evaluates battery condition and charging system
  • Timing light - Adjusts engine ignition timing precisely

Hand Tools

  • Socket sets (metric/standard) - Various sizes for different fasteners
  • Wrench sets - Combination and box-end wrenches for all applications
  • Screwdriver sets - Phillips, flathead, and specialty driver types
  • Pliers - Needle-nose, standard, and locking varieties
  • Torque wrenches - Ensures proper fastener tightening specifications
  • Allen keys/hex wrenches - For hexagonal socket head fasteners
  • Wire strippers - Electrical wire preparation and repair tool
  • Utility knife - General cutting and material preparation tasks

Air Tools

  • Air compressor - Powers pneumatic tools throughout the shop
  • Impact wrenches - High-torque fastener removal and installation
  • Air ratchets - Speeds up routine fastener operations
  • Pneumatic drill - Drilling operations with consistent power delivery
  • Blow gun - Cleaning parts and components with compressed air
  • Air hose reels - Organized storage and easy access to air lines

Specialized Automotive Tools

  • Brake bleeding kit - Maintains proper brake fluid circulation
  • Oil filter wrenches - Removes various oil filter sizes safely
  • Spark plug socket set - Specialized sockets for spark plug service
  • Bearing puller set - Removes pressed bearings without damage
  • Tire pressure gauge - Ensures proper tire inflation levels
  • Coolant pressure tester - Diagnoses cooling system leaks effectively
  • Stethoscope (automotive) - Locates unusual engine and component noises

Tire Service Equipment

  • Tire changer - Removes and installs tires on wheel rims
  • Wheel balancer - Balances wheel assemblies for smooth operation
  • Tire repair kit - Patches and plugs for tire punctures
  • Valve stem tool - Installs and removes tire valve stems
  • Tire depth gauge - Measures tire tread wear accurately

Fluid Service Equipment

  • Oil drain pan - Collects used motor oil during changes
  • Fluid evacuator - Removes various automotive fluids efficiently
  • Coolant recycling machine - Flushes and refills cooling systems
  • Transmission fluid exchanger - Services automatic transmission fluid
  • Brake fluid tester - Checks brake fluid condition and contamination

Welding & Fabrication

  • MIG welder - Joins metal components and repairs exhaust systems
  • Cutting torch - Cuts through metal for custom fabrication work
  • Welding helmet - Protects eyes and face during welding operations
  • Metal cutting saw - Precise cuts for fabrication and repair projects
  • Grinder - Smooths welds and prepares metal surfaces

Shop Equipment

  • Workbenches - Sturdy surfaces for parts assembly and repair
  • Tool chests/cabinets - Organized storage for hand tools and equipment
  • Parts washer - Cleans greasy components before inspection or repair
  • Shop vacuum - Maintains clean work environment and cleanup
  • Lighting systems - Adequate illumination for detailed repair work
  • Ventilation fans - Removes fumes and maintains air quality

Safety Equipment

  • Safety glasses - Eye protection from debris and chemicals
  • Work gloves - Hand protection during various repair tasks
  • Respirator masks - Protects lungs from harmful fumes and particles
  • First aid kit - Handles minor workplace injuries immediately
  • Fire extinguisher - Essential safety equipment required by regulations
  • Spill containment kit - Manages fluid spills and environmental protection
  • Safety signs - Clearly marks hazardous areas and procedures

Office & Customer Service

  • Point-of-sale system - Processes payments and tracks work orders
  • Work order software - Manages customer jobs and billing efficiently
  • Customer waiting area furniture - Comfortable seating and amenities
  • Parts inventory system - Tracks parts availability and ordering
  • Phone system - Professional communication with customers and suppliers

Utilities & Infrastructure

  • Electrical service (220V) - Powers heavy equipment and machinery
  • Compressed air lines - Distributes air power throughout shop
  • Waste oil storage - Environmental compliance for used fluids
  • Floor drains - Proper drainage for wash areas and spills
  • Heating/cooling system - Maintains comfortable working temperatures
financial plan auto repair shop

Our financial plan for an auto repair shop will help you build a profitable project

What Equipment Budget Should You Plan?

Most auto repair shop owners invest between $50,000 and $300,000 in equipment, depending on their service scope and facility size. You really can't go below $30,000 for even the most basic setup because you need essential lifts, diagnostic tools, and air compressors just to operate safely and effectively.

  • Basic General Repair Shop

    A basic general repair shop focusing on routine maintenance and minor repairs needs around $30,000-$75,000, with most of the budget allocated to vehicle lifts and basic diagnostic equipment.

  • Full-Service Auto Repair Shop

    A full-service shop handling comprehensive repairs typically runs $75,000-$150,000, with specialized equipment like tire machines and transmission tools.

  • Advanced Specialty Shop

    An advanced specialty shop or high-volume operation can easily reach $150,000-$300,000, especially when including specialized diagnostic equipment and multiple service bays.

Equipment Budget Examples

Basic General Repair Shop ($30,000 - $75,000)

Basic repair shops focus on essential equipment for routine maintenance, oil changes, and common repairs. The goal is acquiring quality fundamentals without overspending on specialized tools you won't use initially.

Equipment Category What's Included Budget Range
Vehicle Lifts Two-post asymmetric lift with 9,000 lb capacity, safety locks, adjustable arms for various vehicle sizes $8,000 - $12,000
Air System 80-gallon air compressor with tank, air lines throughout shop, basic pneumatic impact wrenches and tools $3,000 - $5,000
Hand Tools Complete socket sets (metric and standard), wrench sets, screwdrivers, pliers, torque wrenches $4,000 - $7,000
Diagnostic Equipment Basic OBD-II scanner, multimeter, battery tester, compression tester, timing light $2,000 - $4,000
Shop Equipment Workbenches, tool storage cabinets, parts washer, shop vacuum, basic lighting $3,000 - $6,000
Fluid Service Oil drain equipment, fluid evacuator, basic coolant service tools, waste oil storage $2,000 - $4,000
Safety & Misc Safety equipment, first aid supplies, fire extinguisher, basic customer area setup $1,500 - $3,000
Installation & Setup Equipment delivery, lift installation, electrical connections, initial shop setup $3,000 - $6,000

Full-Service Auto Repair Shop ($75,000 - $150,000)

Full-service shops require more comprehensive equipment to handle diverse repairs and higher customer volume. You're investing in efficiency and the capability to offer complete automotive services.

Equipment Category What's Included Budget Range
Lifting Equipment Multiple vehicle lifts (2-post and 4-post), alignment lift, transmission jack, engine hoist $20,000 - $35,000
Diagnostic Tools Professional scan tool, oscilloscope, fuel pressure tester, advanced electrical testing equipment $8,000 - $15,000
Tire Equipment Tire changer machine, wheel balancer, tire repair kit, valve stem tools $8,000 - $12,000
Air Tools & Compressor Large capacity air compressor, pneumatic tools, air hose reels, impact wrenches $5,000 - $8,000
Specialized Tools Brake service equipment, cooling system tools, transmission service equipment, specialty pullers $6,000 - $12,000
Shop Infrastructure Professional workbenches, large tool storage systems, parts washer, welding equipment $8,000 - $15,000
Fluid Systems Coolant exchange machine, transmission fluid exchanger, brake fluid service equipment $4,000 - $8,000
Customer & Office Point-of-sale system, work order software, customer waiting area, parts inventory system $3,000 - $6,000
Installation & Training Professional installation, equipment training, permits and certifications, shop setup $5,000 - $10,000

Advanced Specialty Shop ($150,000 - $300,000)

Advanced specialty shops operate with professional-grade equipment for complex diagnostics and specialized services. The focus is on maximizing efficiency, accuracy, and the ability to handle the most challenging automotive repairs.

Equipment Category What's Included Budget Range
Advanced Lifting Multiple specialty lifts including alignment rack, heavy-duty 4-post lifts, mobile lifting equipment $35,000 - $60,000
Professional Diagnostics High-end scan tools, lab scopes, emissions testing equipment, advanced electrical diagnostic tools $20,000 - $35,000
Tire & Alignment Professional tire changers, road force balancer, alignment equipment, tire pressure monitoring tools $25,000 - $45,000
Engine & Transmission Engine analyzers, transmission diagnostic equipment, dynamometer, specialized rebuilding tools $15,000 - $30,000
Welding & Fabrication Professional MIG/TIG welders, plasma cutter, metal fabrication tools, exhaust pipe bender $8,000 - $15,000
Air Conditioning A/C service machines, refrigerant recovery equipment, leak detectors, manifold gauge sets $6,000 - $12,000
Shop Systems Professional tool storage systems, advanced parts washers, paint booth, specialized workstations $12,000 - $20,000
Fluid Management Complete fluid exchange systems, waste management equipment, environmental compliance systems $8,000 - $15,000
Technology & Setup Advanced shop management software, customer communication systems, complete facility setup $10,000 - $20,000
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