Working from home as a mechanic (auto repair)?

[ed_v]

I did it for about a year at my previous home shop. PissedOffJoe said he's out, but maybe others might benefit.

1. It's gonna take a good initial investment. I started with a two post lift, a good supply of tools, and one bay. Also had to purchase a lot of diagnostic equipment and an AC recharge/recycle machine. It adds up fast.

2. Incorporate, insure, and have all the proper license.

3. I know nothing about Facebook, but my wife does. She place lots of ads for me on local marketplaces. It generated about 50% or more of my business.

4. Be willing to work constantly. Post shop hours, but you will be working much more than your shop hours. Be prepared for no off days at times. I would also have people showing up at all times of day and night.

5. Be professional. Get your marketing in place. Have a shop logo, signage, and wear a uniform. Most of all, speak to customers in a professional manner. I can already see where PissedOffJoe would have a hard time with this.

6. Get accounts with a couple of different parts stores. I used Napa and Advance Auto Parts. One store might have what the other don't. You can run up a lot of $$$ in just a week for parts. Be prepared.

7. Speaking of accounts...Make sure you have good credit and money to live off of for a while. You're gonna need it.

8. Continually educate yourself. The automotive technology changes so fast. This will dictate a lot of tool purchases as well.

9. Don't take on every job. Skip engine or transmission rebuilds unless that is all you are going to do. Also, use the small jobs to gain customer loyalty. I would run ads for oil change or brake specials where I knew I wasn't going to make any money on them, but it led to repeat business.

10. Get an account set up with a local towing company. Customers could call me, I'd have the vehicle picked up, and they paid me one bill. I made nothing on it, but it's more convenient for the customer.

11. Charge an appropriate labor rate. Local rate around here averages $85 to $100. I charged $65 at the time I closed my doors

I was/am in a rural area. My shop was large and sat about 150 feet from my house. I had a large sign by the road and a large parking area by the shop with a secured area for customers cars to sit. Something to think about.

I made money, but I make much more in fabrication and enjoyed it more. The customers ruined it for me. They want it all done yesterday for very little $$$.

Ed

 

[575cat]

18 + years , never advertised just word of mouth lot of long distance customers , dont over think it . Dont get to many accounts , customers take care of theyre own towing , keep it downsized , dont by into the big equipment gizmo **** if you dont feel comfortable getting involved dont do it .

 

[MikeinNorthWales]

So, the OP started this thread asking for advice. Those that know from experience, or from a friends experience, chimed in with some very good insight into the small business world. It sounds like some points were discussed that the OP hadn't considered. I think he got exactly what he was looking for. Good, solid, no BS info that he used to make his decision. He's not in a position to make a go of it in his current situation. I'm not sure why anyone is offended. I think this is one of the most productive threads recently.

I hope I haven't offended anyone. Please don't block me. I like this place!

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[Stuart in MN]

One bud didn't mark up parts.

11. Charge an appropriate labor rate.

Something I think a lot of one man shops do is not charge enough, both for parts and labor (this applies to all kinds of businesses, not just auto repair.) While they think they need to be low on price in order to bring in business, it can end up being a trap. They probably have lower overhead than the larger shops they're competing with, but they still have to pay the bills and earn a living wage.

 

[zmotorsports]

Something I think a lot of one man shops do is not charge enough, both for parts and labor (this applies to all kinds of businesses, not just auto repair.) While they think they need to be low on price in order to bring in business, it can end up being a trap. They probably have lower overhead than the larger shops they're competing with, but they still have to pay the bills and earn a living wage.

This was what I was accused of many times from my parts store rep as well as fellow mechanics, not charging enough.

I ran my home based business for 20-years (1997-2017) and made decent money at it and had a solid client base. I had what was called a "limited use permit" which was a legal business license but it had a few stipulations attached by the city.

I could not advertise and no signage on the front of the property. I could have a sign on my shop but it had to be behind the house and the sign couldn't be visible from the street, although I never did put a sign up. I also could not have cars parked in front of the house, which also is why I worked by appointment only, no dropped off cars without appointment. Upon requesting for my business license I had to go to each neighbor I shared a property line with and get them to sign off that it was ok and then attend a city council meeting in which it was open to the public. I only shared a property line with two other homes so I went one step further and went to the house on either side of them as well as the one across the street and on either side of them for a total of 7 neighbors. It was a gamble but I wanted to make certain I showed that I wanted full support from my neighbors. None hesitated one second to sign as all were perfectly fine because I had my shop for a few years by then and they knew I was courteous about the hours I worked in my shop and the noise level was kept to a minimum.

I had all proper licensing, insurance, etc. but to be honest the record keeping for such things was absorbent and I got tired of seeing all of that money go through my hands, which is why most shops charge what they do and people don't understand that.

My shop rates started out in 1997 at $25/hour and when I closed my shop down in 2017 were only $60/hour. I usually marked up parts approx. 40% is all. Again, I made decent money and did a good job for my clients. I was told to double my parts and charge at least $100/hour but I looked at it as I had a lower overhead and was trying to keep costs down for my clients but still make a good wage for performing the work. I worked on everything, and I mean everything, from lawn mowers to sand toys and snowmobiles and even large RV's over those 20 years.

Ultimately I closed my business down because we were moving but I was ready to be done with it because people had changed and were continuing to change over the course of that 20 years. Early on in my business days I would do a job for someone and they would be so pleased with the job I had done and how I had treated them, especially when they knew what the job would have cost elsewhere but by the later years I was having people complain about costs and if they could get the "good neighbor" discount or worse the "church discount" and had no idea what the job would have cost at another shop.

By the time I dissolved my business I was ready to be done dealing with the average person and their cars/toys.

Now I work on my own stuff and if/when I have time I will take a job on from a friend if it is something I want to do.

 

[sberry]

2 of my.Buds were at the counter at the parts store. One says,,, a guy had a heart attack in my shop the other day,,,, he must.have seen the hourly rates,, ha,,,, the other asks,, well did he die, No, then second one says,,,, just right then.

 

[zmotorsports]

2 of my.Buds were at the counter at the parts store. One says,,, a guy had a heart attack in my shop the other day,,,, he must.have seen the hourly rates,, ha,,,, the other asks,, well did he die, No, then second one says,,,, just right then.

Kinda morbid, but funny as hell.

 

[GRB]

I think not owning the property kills it before you even start but think about being a mobile mechanic working on people's cars at their house or business.
I've had a shop and parts business for a long time and several of my long term customers have gone to this for various reasons.
One lost his lease and could not find a shop to rent.
Another worked for a shop where the owner retired and the customers wanted him to keep working on their cars.
One sold his house/shop and thought he would retire and reality was a shock.
One was forced to sell his shop and lost his place to work.
One just decided he was sick of all the BS operating a shop in expensive SoCal.

In each case, things are going fine for them. They all still ordering parts.
The key was doing work on older cars as they take far fewer special tools that you have to haul with you. Many of the jobs are long term restoration type stuff. Some of the cars are owned by someone that owns a business and has a place to work on the cars that is better than a shop you could build yourself as a real business.

Just be careful with licenses, Sales Tax, EPA, etc. Most of which you can work around if the customer buys the parts direct and you work on the car at their location.

 

[firebirdparts]

Well, not exactly the response I was expecting.

Looks like a lot of people wasted their time.

This was as fine a thread as I have ever seen on here. Wonderful advice. Really good (strangely unappreciated) responses.

 

[50 merc]

Been thinking about doing this myself for a while. Lots of good, thoughtful info here. Thanks, everyone who posted.

 

[Magnum440d100]

I know this thread has already run its course for the OP. But since it can and will show up in google searches, AND other people can benefit from this thread, I will add something more..

Don’t be afraid to be unconventional. Not all the latest and greatest can solve all your issues.


When UV dye can’t find an fluid leak.... when you clean the filthy parts under the vehicle and still can’t find the leak.... when the grimy mess is rearward of the vehicle, and that’s where all the other mechanics look....

Sometimes parking the car for a couple hours or even overnight on a piece of cardboard can tell you more. That oily mess that looks like it’s coming from the transmission tailshaft, is actually a split rubber transmission flexible line that has a decent sized pinhole....


Going to school and thinking you know how to diagnose everything=Thousands $$$
Cardboard= Free.....


Find what works for you and run with it

 

[pi_guy]

Thank you Mike! Well said.


@ ed_v; Good advice, and I think I like "PissedOffJoe" better than AngryJoe.

@ zmotorsports; Good advice from someone who has done the job. It really does not seem like I would be leaving behind all the ******** I encountered working for someone else in their shop, instead running into more of it and on top of that just starting the business sounds like a nightmare.


Maybe this all sounds like fun to someone else and I really do hope it might help others make their decisions.

It is a been there done that.

The model worked in the 80's to 90's now the trend is less dependence on carbon based things and those that we do need to be regulated. There is argument for specialized niches you can try to run under the radar or go the whole nine yards which in some cases is cost prohibitive.

In the 80's I often had two formula cars on stands in the driveway and a 38 ft gooseneck trailer in front of my house. Could I do that now with out getting the **** storm started no way.

So my model changed I travel to tracks or client shops and provide services that way. If it is shop work gearboxes or data systems- electronics it gets shipped. No walk in or just show up clients.

 

[crf_kdx]

This has been an awesome thread to read through. I appreciate all who contributed to it. I’m positive it will be helpful to many individuals.

 

[Iroc-Z]

I have been operating at home for about a year and so far it works great. Customers are great and I don’t have to try and bill 40 hours a week to make a living. As I have grown over the last year I am looking at moving my business to a commercial property. Mainly to continue to grow. Plus I get my home shop back for my personal projects. Unless you live in the country most towns will not let you do it. I am currently flying under the radar so to speak because the town I live in works off of complaints. My neighbors don’t care and I have a well kept property. I also have no signage whatsoever.

 

[meathooker]

I would highly recommend starting small and promoting one or two specific jobs.

A good friend of mine does this. He had a shop do a transmission for his work van years ago. After he got the bill he figured he could do it. Taught himself how and now 1/2 his yearly income is from transmission work!

 

[Dragfluid]

One thing that I don't believe has been mentioned is, since it's going to be at your house, some ground rules need to be set. Set some normal hours and keep them etched in stone. Otherwise, people won't leave you alone. I've had a guy walk right into the house while my family and myself were sitting at dinner,,,,,, TWICE. (screen door) The second time I wasn't quite as friendly.
Treat it like a business just as if it were in a rented piece of brick and mortar 10 miles away.

 

[rsanter]

I do welding as a side gig along with some fab work.
I really like it, I don’t advertise, people just know who I am.
I don’t work for anyone that I think will annoy me.
I have a few customers that I do a bunch of stuff for. I trust them.

Keep it small and then build from there if it seems feasible


A friend ran a mobile auto repair service for several years. Focused on the small work and made a living of it

If you want to do some stuff, I always see people asking for little jobs to be done on Facebook. People asking for lights changed, alternators, water pumps, brakes....etc
May want to start there

 

[fire2892]

I have been in the auto industry 20+ years, grew up working at a shop at a guys house. He had a great setup, 4 bay shop was at the front of his property but still hardly visible from the road, no signage, and didn’t look like a full on car repair shop. His house was on the back of the property so he wasn’t bothered by people dropping cars off at night, and believe me they do. All hours of the night, wreckers will also drop stuff late at night. He had been there 20+ years when I was working for him, He had accounts with wholesale parts houses, they delivered multiple times a day and there was plenty of work for him and I as a high schooler, and when I got out of school. Located in a rural area, he knew everyone and his property was the nicest looking best kept place on the street. Everyone knew he was there and no one had any problems with it.
From the business side it wasn’t the best situation, he didn’t have an actual business license, but filed his taxes as a sole proprietor auto repair shop. Couldn’t get garage keepers insurance because no business license, shop got broken into one time and about 3k worth of stuff stolen and he just had to eat it. But all in all things went well for him, until they didn’t.
Fast forward to a few years ago, the once rural area has turned into a desirable area. 2500+ home swim, tennis, golf, community built less than a tenth of a mile from his driveway. All of the old timers were getting old and moving on and property that used to be 5k an acre is now 100k an acre. Times were changing, the property adjoining him had a little 1000 sq ft shack on it, it sold and some folks built a 500k mansion, thinking they were adjoining a nice manicured hobby farm. They never knew it was a business until after they moved in. One complaint to the county and he was shut down overnight. It took him well over a year to get it worked out so he could do work again. Planning and zoning meetings, commissioners meeting, ADA approved bathroom, Yada, yada, yada. Now he can work but with very strict rules from the county about hours, deliveries, etc.
My words to anyone trying to start from their house is make sure you are legal from the start. Or get started out of your house and once you see there is a viable income source move to a close commercial location and start a legitimate business.

 

[PoorOwner]

I know people detailing cars for others at their house. . Although they are usually mobile as well.
But I bet a lot of them don’t have a business license or insurance either. How does that work?

 

[ScottsGT]

I know people detailing cars for others at their house. . Although they are usually mobile as well.
But I bet a lot of them don’t have a business license or insurance either. How does that work?

A lot less liability in washing dirt off a car than swapping electrical or mechanical system parts.
Irregardless, something go wrong, it's going to cost them.

FWIW, 35ish years ago I had a small body shop. I rented a garage/small building and basically painted cars for car lots. I flew under the radar and let the car lots know this and their insurance would have to cover us transporting cars.
One day, one of the guys in the shop pulled out in front of a car and got the bumper knocked off a car we just painted. Car lot covered it. Could have been much worse. My guy was blind in his left eye and didn't take the time to look closely.
For me, it was an eye opener (pardon the pun!) and I started looking for a way out.

 

[zmotorsports]

I have been in the auto industry 20+ years, grew up working at a shop at a guys house. He had a great setup, 4 bay shop was at the front of his property but still hardly visible from the road, no signage, and didn’t look like a full on car repair shop. His house was on the back of the property so he wasn’t bothered by people dropping cars off at night, and believe me they do. All hours of the night, wreckers will also drop stuff late at night. He had been there 20+ years when I was working for him, He had accounts with wholesale parts houses, they delivered multiple times a day and there was plenty of work for him and I as a high schooler, and when I got out of school. Located in a rural area, he knew everyone and his property was the nicest looking best kept place on the street. Everyone knew he was there and no one had any problems with it.
From the business side it wasn’t the best situation, he didn’t have an actual business license, but filed his taxes as a sole proprietor auto repair shop. Couldn’t get garage keepers insurance because no business license, shop got broken into one time and about 3k worth of stuff stolen and he just had to eat it. But all in all things went well for him, until they didn’t.
Fast forward to a few years ago, the once rural area has turned into a desirable area. 2500+ home swim, tennis, golf, community built less than a tenth of a mile from his driveway. All of the old timers were getting old and moving on and property that used to be 5k an acre is now 100k an acre. Times were changing, the property adjoining him had a little 1000 sq ft shack on it, it sold and some folks built a 500k mansion, thinking they were adjoining a nice manicured hobby farm. They never knew it was a business until after they moved in. One complaint to the county and he was shut down overnight. It took him well over a year to get it worked out so he could do work again. Planning and zoning meetings, commissioners meeting, ADA approved bathroom, Yada, yada, yada. Now he can work but with very strict rules from the county about hours, deliveries, etc.
My words to anyone trying to start from their house is make sure you are legal from the start. Or get started out of your house and once you see there is a viable income source move to a close commercial location and start a legitimate business.

This was the EXACT reasoning why I went the extra mile and got all of my zoning and business license issues out of the way early on vs. waiting until I had a clientele. As soon as I decided I wanted to do side work to supplement my income I did what I needed to in order to get licensed and be official. I figured once I was official it would be harder for them to take my license away vs. one complaint prior.

Luckily I never had any complaints nor any issues but I kept my property immaculate and worked by appointment only to eliminate any chance of vehicles being parked outside. I ran this setup for 20-years before dissolving my business and moving but I would also suggest getting it legal upfront vs. waiting.

 

[CarguyMD]

Thanks for all the thoughts on this topic. I was kinda considering doing something like this in my semi far off retirement for amusement and a little income. Of course that justifies the future tool bills. We all need a reason for that right? No way I could pull it off where I am now.

 

[theoldwizard1]

I am a big fan of the South Main Auto YouTube Channel. Ignoring the electrical work he does, it appears he makes a ton of money on brakes jobs and other "typical" wear items (tie rod ends, ball joints, etc). He does not have an alignment rack, but he has access to one. Watch some of his brake/suspension videos and see what he uses.

If you are not good/comfortable with electric, stay away from it !

If you are going "go into business" make sure you have the following

• 5+ HP compressor with plenty of air hose
• get a hoist
• your choice of pneumatic/battery impacts and ratchets, plus standard, deep and flex sockets
• a second set of wrenches, at least the most common sizes
• bench grinder
• sand blast cabinet
• parts washer
• a REALLY good spring compressor
• "gas ax"
• MIG welder
• AC recovery charge machine
• smoke machine

Over time you will "stock up" on various "consumables" like vacuum hose (several sizes), vacuum fittings/adapters, heater hoses, NiCopp brake line, etc.

One way to "make friends" with customers is to give them a shopping list of parts that they can buy online at Rock Auto or Amazon. Give them specific brand names that you like and tell them you will not accept "substituted" parts. Add $20 to their bill for making a shopping list.

 

[Bad00SS]

What kind of hourly rate are you guys charging that do this at home?

 

[zmotorsports]

When I closed my business down in 2017 I was charging $60/hour. I know I was well under-charging as many independent shops in my area were in the $85-$100 per hour and dealerships were around $105/hr.

You will have to determine where you need to be as far as overhead to know what to charge. My overhead was low.

I'm sure this will be different by area/region across the country.

 

[jimindm]

Zoning can change in one vote of a council. It does not mean they can shut you down, if you were operating legally. There is all sorts of non conforming zoning out there. Again zoning can be different in all areas. It can change from across the street, or down the street.

Many times a operation out of a home is like even one in a commercial building. It may not fit what it is zoned for, but through a board somewhere they have the ability to give exceptions and variances. A variance, usually is a zoning change and once it is done, its done. There is no turning the clock back. An exception many times gives you a pass to do what you want, but screw it up and it can be brought back and possibly taken away. In many cases the city sort of loses control on a variance, but has control of an exception, and that is what they lean towards.

As far as how much an hour. You really do not get it. You have to cover your bills and know how much it cost to open the door everyday. One cost many forget is updating of equipment or building upgrades. They do not figure out that when the compressor goes down, you have to have the ability to get another one, and soon. Any piece of equipment falls in that category.

I am not sure the list above is all that accurate. You need equipment that will make you money. He did not mention any type of scan tool, and that is just about a must now.

You will also need some kind of invoicing or accounting system. Keeping good records is a must.

You will also need a labor guide and some information system. You may not need a full bore system, but you will need something that you can access regularly as needed.

 

[sberry]

Joe can do a version of his own flat rate system as he explained. If he ain't gonna pay other men and is doddering around can make a few bucks without too much stress. Many side job customers are willing to buy parts, like he said, no great loss to take another hour if it's a little slower.
This kind of thing a guy doesn't need to have his hair on fire. My Bud did this, kept a couple hundred in his pocket every day for parts, taxes paid, so what if a guy isn't the greatest record keeper.
Fix parts sometimes, charge for your work, the object isn't to see how many parts a guy can toss at it. The goal isn't to make the parts guy rich. I fix a starter and alternator on occasion.

 

[fire2892]

When I closed my shop I kept all of my equipment other than my lift. I kept one commercial landscape account and did 90% of their work out of my basement. The big jobs like engines and clutches got sent to the shop I went to work at. They had a 10 truck fleet plus I took care of the owners personal cars too. Approx 16 cars as side work. I almost constantly had one of their trucks at my house, they run all 1999 to 2003 f 450 and f550 powerstroke trucks. It worked well because I was able to stock certain parts and they had a spare truck so they could rotate the crews out of the down truck. I charged them $60 an hour. plus I generally made 50% on parts. I did this for about 6 years until just recently when we had our second child I cut out all side work to play with the kids. I was averaging 15k a year profit on the side so it really helped us get squared away financially and is allowing me to build my shop without cutting into our money from our normal jobs.
If someone is wanting to start small I would definitely recommend trying to get in with a company with a small fleet or a small buy here pay here car lot. I did very well when I had my shop, working for small car dealers. It takes a little to figure them out as far as how far they want to go to get the car to what they consider “lot ready” condition, but they also aren’t jumping up and down wanting the car the same day as long as they feel they are getting good work at a fair price. They may also send some other dealers your direction.

 

[Magnum440d100]

Another thing I don’t think has been mentioned, is buying specialty tools...

This recent purchase reminded me of this post... for the longest time, I have been able to use a 4.5” grinder spanner to twist in ratcheting calipers. Today, I got a car that it does not fit, and so I had to buy a “kit” with one that will...

Unfortunately I will be working on this car for almost free because I had to buy a set I did not have. It happens. But this job paid for a tool that I will use again and make money... tools are not a bad thing. But be prepared to shell out money on tools you don’t have. And sometimes, it’ll cost you...

 

[Hilltopmasonry]

But be prepared to shell out money on tools you don’t have. And sometimes, it’ll cost you...

True but at least you can write them off which takes a little sting out of it



Sent from my iPhone using Tapatalk

 

[Magnum440d100]

Oh and expect the unexpected....

Customer today brings me a Volkswagen Jetta, 2007. Needs rear brake pads...

I quote him, he comes over, and come to find out, it’s metal on metal. Both sides... passenger is worse..

So, I go to take the caliper brackets off, find out that it’s an m14 xzn.....

So guess what I had to buy today? The caliper kit, and a set of xzn sockets at Oreillys....

Yup... lost a few dollars today, but I gained tools... I am ready for more work! BRING IT ON!!!! Haha

 

[Iroc-Z]

Buying odd tools is normal. I spent about 6-7k last year in tools. Being a one man shop I have to assess if the tool is going to make money. I had one customer that wanted me to do a head gasket on an older bmw. I did not have timing chain tools for that motor. Told the customer that I would do the job but told him I had to buy the tools to do it and I would be charging him for them. Spending $400 for a tool I probably won’t use again did not make sense.

 

[Bad00SS]

Bringing back this old thread, What software are you using or your methods to determine cost of a job? I know some shops around here use Mitchell software to determine actual book time of labor hours. Wish there was something free like a website with stuff like this lol. Any ideas? Its getting hard sometimes with more and more customer cars coming in after work that i'm repairing. Guess on the price and go too cheap and screw myself because the 1 hour job took 3. I'd like to know the recommended book time for labor.

 

[ScottsGT]

Similar incident just happened with a co-worker that this thread reminded me of. His 16 yo son started cutting yards last summer. He's getting all kinds of references, work is expanding faster than he can keep up.
He just cut the grass for a Dr's office and got $60 for less than 30 min work. Now they want to contract him.
Dad just put the brakes on because he's not a commercial business, no city business license, no insurance, etc... Told him to stick to friends and family until you go off to college.
Dr's office probably has no idea he's only 16.

 

[ard]

Dad just put the brakes on because he's not a commercial business, no city business license, no insurance, etc... .

sad.

If I was dad Id help him get set up.

I had an electrical contracting business when I was 15.

 

[ScottsGT]

sad.

If I was dad Id help him get set up.

I had an electrical contracting business when I was 15.

Goes off to college this time next year. He's going for a business degree, so that will help. Wants him to focus on education now. Dad was the first ever in his family to make it past the 12th grade (hell, probably 8th grade knowing his family) and has done very well with his Masters.