7 Most Profitable Auto Repair Services to Offer At Your Shop (2024)

AutoVitals

Jan 12, 2023 1:37:00 PM

If your auto shop is just getting started, offering a limited selection of services is understandable. But when you’re ready to start growing your business, expanding your service lineup is one of the most effective ways to pursue this goal.

That said, some services can bring in much more money than others. Here’s AutoVitals’ guide to the most profitable auto repair services your shop can offer. By prioritizing these services, you’ll be capable of taking your garage to the next level!

1. Oil Changes

Oil changes are a fact of life, which is why there are countless dedicated oil change businesses out there. Even so, oil changes are one service that your garage absolutely needs to offer.

Of course, there’s a good chance that oil changes will make up a good chunk of your profits by themselves. Even so, this is far from the only reason they’re an essential part of any auto shop’s service lineup. Oil changes are also a service drivers frequently need, giving you a perfect chance to establish a relationship with new customers. With that connection in place, the odds that they’ll visit your shop for larger-scale repairs will skyrocket.

2. Brake Jobs

Between friction and everyday wear and tear, all sorts of car parts wear out over time. And since brakes are meant to create friction, it only makes sense that they’d wear out before you know it.

This is why no list of the most profitable auto repair services would be complete without brake repair and replacement. Better yet, most brake fixes involve off-the-shelf parts and easy-to-calculate labor costs. Make sure your shop is ready to handle one-off brake repair requests and brake care as part of a broader maintenance schedule.

3. Diagnostics

In a vacuum, there would be little reason to include diagnostic services on a list of profitable car repair services. While they allow you to charge for your time, they don’t come with any associated parts revenue.

On the other hand, diagnostics are a fantastic way to meet new customers and convince them to do business with you over the long term. Since today’s cars are so technologically advanced, it’s more complex than ever for the average driver to figure out what’s wrong with their vehicle. In many cases, expensive diagnostic equipment is needed to get to the heart of things — diagnostic equipment few motorists have access to on their own.

By offering assistance with diagnostics, your shop will benefit from:

  • Long-term profit increases
  • Better customer retention
  • An overall increase in business

While diagnostic services aren’t the right fit for every shop, they can certainly give you a boost if they fit your business model. Because of the perks they can deliver, some shops even offer diagnostic services for free!

4. Alignment Checks

Not all drivers in the US have to deal with significant changes in weather conditions when the seasons change, but many people do. And when the weather changes, alignment issues often follow.

This is doubly true in wintery areas where motorists are likely to switch between standard wheels and snow tires. That’s because tire changes come with a risk of wheel misalignment.

Luckily for your customers, any good auto shop can check and adjust their alignment in no time. You can handle this procedure in isolation and make it an add-on service with tire rotation/new tire purchases.

5. Suspension

Like many other parts of the modern-day automobile, suspension systems are complicated. They put up with a lot of abuse on the road, including everything from potholes to inclement weather. Furthermore, they’re far too intricate for drivers to fix on their own.

However, any qualified auto shop is up to the challenge of fixing suspensions for its customers. Suspension-related parts aren’t hard to include in a labor quote, so it’s easy to profit from these services.

6. A/C and Heating

No matter where your shop is based in the US, your customers need some climate control systems in their vehicles. Depending on the season and your location, you should be ready to work on both air conditioning and heating systems.

Like any auto system, heating and A/C systems will eventually need maintenance and repair services. With that in mind, it’s wise for your shop to take advantage of this market by providing these services. After all, very few drivers will put up with an uncomfortably hot or cold cabin for long.

7. Parts Shop

As you may have already noticed, having a parts shop in your garage isn’t exactly a “service.” Still, you can turn some extra profit by letting customers buy parts from your shop—and you can set your own margins for added income. Plus, this doesn’t involve extra work on your part, so it won’t come with any added labor costs.

Most of the services your shop offers are too complicated for the average driver to tackle independently. With that in mind, it’s wise to focus on selling things like replacement windshield wipers that your clients will likely take care of themselves anyway. Your customers could even buy these parts while waiting for you to finish more in-depth repairs!

Increase Your ARO With AutoVitals

Now that you’re familiar with the most profitable auto repair services, the next step is knowing when to provide them to your clients. By performing complete inspections whenever possible, you’ll keep your customers safe and make them more likely to give you repeat business. (Plus, you’ll boost your ARO in the process!)

The best way to ensure your full inspections are truly comprehensive is to use a digital inspection checklist — and AutoVitals’ Digital Vehicle Inspection software. Your techs will get the guidance they need on every inspection, and your customers will get the peace of mind they deserve as a result. Take the first step by scheduling a demo today!

auto repair shop, Auto Shop, auto repair services

7 Most Profitable Auto Repair Services to Offer At Your Shop (2024)

FAQs

7 Most Profitable Auto Repair Services to Offer At Your Shop? ›

What is the average profit margin for auto repair shops? According to Small Business Chron, auto repair shops generally have a profit margin of 50-65% for labor and 20-28% for parts sales.

What is a good profit margin for an auto repair shop? ›

What is the average profit margin for auto repair shops? According to Small Business Chron, auto repair shops generally have a profit margin of 50-65% for labor and 20-28% for parts sales.

What customers want in an auto repair shop? ›

Customers want to know that their car is in good hands and that you can fix any problem they have. They also want to see that you use high-quality parts and tools and that you follow the best practices and standards in the industry.

How can I increase sales in my auto repair shop? ›

Let's start with what you can probably do right now.
  1. Sell Declined Jobs. ...
  2. Give Them Something to Take Home Each Visit. ...
  3. Send Holiday Gifts or Other Timely Gifts. ...
  4. Create a Loyalty Program. ...
  5. Create a Referral Challenge or Program. ...
  6. Give Customers More Ways to Engage With You Online. ...
  7. Get Involved In Your Community.

What are the biggest challenges for auto repair shops? ›

Top 5 challenges for independent repair shops in 2024
  • Finding qualified/responsible technicians: 56 percent. ...
  • Staying current with diagnostic/software updates: 36.4 percent. ...
  • Finding affordable parts: 30.8 percent. ...
  • Retaining qualified technicians: 27.2 percent. ...
  • Keeping overhead costs low/impact of the economy: 23 percent.
Feb 5, 2024

How to increase profit margin in auto repair? ›

By honing in on impactful marketing plans, you can increase your auto repair shop profit margin. Enhancing your shop's branding, investing in promotional advertisem*nts, and even hiring a social media coordinator will not only maintain your current customer-base, but will also boost business if done right.

What is the average revenue of a body shop? ›

After conducting proper market research, our team established that a more extensive auto body shop with four or more mechanics could earn upwards of $100,000 per year. Meanwhile, a smaller body shop owner with a small team of mechanics will take home between $30,000 and $60,000 per year.

How do I market myself as a mechanic? ›

The best ways to get more business as a mechanic are to ask your present clients for referrals. That works great! Every time a customer is done, ask them to send you another customer just like them.

How to save money at mechanic shop? ›

You may be able to get a lower price just by asking for coupons and straight-up discounts. Plead your case. Tell them the repair is expensive for you, says Mike Crossen, a CR mechanic. According to CR's repair shop survey, independent shops and some chains were rated highly for their discounts.

What is the cost of goods sold for auto repair? ›

Cost of Goods Sold for an Auto Repair Shop

Your cost of goods sold is any expense that you incur when your provide a service. Essentially you have 2 primary cost of goods sold categories. Material Cost – These are the costs for purchasing parts or materials for a customer's vehicle.

What is the #1 injury in an automotive shop? ›

1. Burns in the Auto Shop and Around Vehicles. Auto shop workers are at risk of burns from hot engines, exhaust pipes, welding equipment, and much more. According to OSHA, burns are one of the most common injuries in auto shops, and it's easy to see why when you realize how hot vehicles can get.

What is the future of auto repair industry? ›

By 2040, the state projects that nearly 32,000 auto mechanics jobs will be lost in California, since electric vehicles need far less maintenance and repair than conventional combustion engines.

What is the most common type of auto repair shop? ›

Independent garages are the majority. They are privately owned, and often come with varying degrees of service delivery and pricing. The most reliable of the independent shops can be compared to the highest level dealerships.

Is a gross profit percentage of 50% considered good in an automotive repair shop? ›

Some experts suggest trying to maintain a 50-55% gross profit on parts, while some suggest keeping markups much lower and increasing labor rates. Many customers will not be sensitive to a large markup on a lower-cost part.

What is the profit margin for automotive OEM? ›

OEMs had an average profit margin of 8.9% in the third quarter, 3 percentage points higher than automotive suppliers.

How do I calculate the value of my auto repair business? ›

ASSET-BASED VALUATION

The auto repair shop's assets (land, building, equipment, tools) are adjusted to fair market value, along with any liabilities (bank loans, amounts owed to vendors). This method values the business as assets less liabilities.

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