Oil change/Auto repairs LOI

searcher profile

September 17, 2025

by a searcher in Houston, TX, USA

I am looking to purchase and oil change/auto repair shop. The asking price is $825,000 and it’s broken down into real estate, 425,000 and the business,$400,000. The business has been in existence for over 20 years and the last three years it had revenue of over $700,000. The owner pays himself 180k per year as salary and the net operating income is around $25,000. According to the broker, the store sees between 14-15,000 cars per year and it has five bays. For those experience in this kind of business what do you think about this deal?
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Reply by a searcher
in San Diego, CA, USA
Hey Emeka, unless there's something I'm missing, the average invoice that shop is generating is only $50 per vehicle at 14k vehicles per year. The average invoice at the shop I own is closer to $800. Is there a reason why their sales performance is so low?
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Reply by a lender
from University of Missouri in Denver, CO, USA
Cash flow could be tight. An $825k loan over 25 years shows a yearly payment of around $90k. If we look at a new owner's salary of $100k, we would have income of $25k + $80k salary addback = $105k. It's close though, I'd be happy to discuss further
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